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We see more insurance companies merging globally, almost daily and believe that a short run-down on some of the most frequently asked questions might help the classic car owner. The aim of this is to actually see if classic auto insurance is something you might be in need of.
The majority of owners of collector vehicles, actually do not have specialty insurance. In fact less than half of them do! This type of classic auto insurance has been available for approximately 50 years, so we find this difficult to believe, as these car owners are paying standard insurance, which means the policies are generally more restrictive and more expensive.
What the classic car owner fails to see is the fact that insurance premiums for a collectible can be as much as 500% cheaper than a standard auto insurance policy. Standard insurance can adequately cover the replacement cost of these specialty vehicles and more than adequately covers "daily driver" needs. But these policies do not contain the additional benefits that a collectors car insurance can have.
The difference between specialty insurance programs and normal daily driver programs are the rates, service levels, type of cover and claims handling. These vary from policy to policy, and most daily driver programs are pretty standard. The best thing a collector can do is conduct as much research as they can on specialty programs, before ever making a decision.
Although cost is important, it should not be the factor which determines your insurer of choice. You are buying a service and this is what you should be looking for. In the world of insurance, the saying, "you get what you pay for" applies more than ever. The collector needs to go with an insurer who offers excellent customer service, knowledgeable staff, superb claims handling and a good understanding of what collector vehicles are. You need to get from them the overall impression that they care and want to make you their customer.
Today there are three types of auto insurance the ACV or actual cash value, the Agreed Value and the Stated Value. ACV is designed for daily driver and everyday vehicle use. These policies depreciate the value of the vehicle with age, as does the Stated Value policy. However with an Agreed Value policy, you will be guaranteed to receive your "Agreed" value as a replacement cost for your vehicle and this is how collectible cars should be insured, with no depreciation.
When it comes down to the kinds of vehicles that could be considered collectible or not, this is really at the discretion of the collector himself. If you feel you have a one of a kind vehicle that is virtually irreplaceable, therein is where the value of the car lies for you. However, this market is rapidly becoming more popular and there are a growing number of classic car insurance companies to choose from.
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