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Collector Car Insurance

It is hard to believe but a high percentage of owners of collector cars are insuring them as if they were "run of the mill" machines. Collector car insurance by specialty auto insurance companies is the correct way to insure a collector car. Collector car insurance will be much cheaper than insuring the collector car along with the family SUV. One such specialty company with a good reputation is Hagerty but there are others.

There are 3 types of car insurance coverage. A regular car is insured under something called Actual Cash Value (ACV). The claim paid out is based on a depreciated book value. The older the car, the less is paid out. Some insurance companies offer Stated Value Policies as collector car insurance. The owner states what price the collector car insurance should pay for the vehicle, which is above the ACV price. Under this collector car insurance policy the company will pay only up to the Stated Value of the car and not more.

Only Agreed Value collector car insurance policies should be purchased. With this policy there is no depreciation in the amount paid for the car, should something happen to the car and it becomes a total loss. A specialty collector car insurance company will only offer Agreed Value collector car insurance.

The lines between a classic, antique and collector car are blurring. More people are into specialty cars, so that a car need not be of a certain age to qualify for collector car insurance. In the past a car needed to be at least 25 years old to qualify for collector car insurance. Now one must inquire of each insurance company as to what their definition of collector car insurance is. 

Collector car insurance will limit the amount of mileage allowed on the car per year. It is usually less than 3,000 miles and used to travel to and from collector car events. If the car is to be driven for enjoyment once in a while, check with the insurance company to see if their collector car insurance allows this. The transporting of passengers and merchandise is not allowed under a collector car insurance policy. The owner should not use the car to go to the stores for bread and milk. If something happens, the car will not be covered under a collector car insurance policy. Collector car insurance will stipulate that the car be garaged.

Most companies will require the person who wants to insure a car under a collector car insurance policy, to be of a certain age and have an excellent driving record. Don't attempt to insure a car under collector car insurance if you have a DUI violation. The individuals with this on their record would be lucky to get regular car insurance, let alone insure a collector car under a collector car insurance policy.


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