|Car Theft is just one reason|
you need specialty insurance
Some enthusiasts think that these types of insurance are available only for vintage autos that only drive once a year in parades, and while this is available, there are in fact many other options. Purchasing a policy for a "less-than-perfect" car, or one needing a restoration is also often avoided, but you should know that they're not as expensive as you might imagine. Standard auto premiums can cost up to 500% more than specialty insurance policies! And, you can usually find a policy which is just right for your particular needs.
Specialty automotive insurance can help you recover from all types of loses including those from theft, fire, accidents and collision and other catastrophes that can happen when we least expect it, and certainly can occur when we're least prepared for them. We may insurance, but still have a policy that leaves us unprepared and poorly covered. How?
Some people rely on homeowner insurance to cover theft losses, especially when they have a project car needing restoration or a lot of repair before being put on the road. Most people have the notion that insurance is not needed unless they drive it, but this can result in costly losses. Not only can an insurance disallow a claim, but more than likely even if they do, a claim will result in far less than the vehicle's value. Homeowners insurance is not a good substitute for insurance designed especially for classic cars or trucks!
Many people select a policy from their traditional auto insurance carrier, not realizing that this can be robbing them of valuable coverage not offered by standard auto insurance, and perhaps even paying a premium for the privilege! Specialty insurance policies can be less expensive than those through your standard insurance carrier even taking into account multi-car discounts, alarm discounts, "clean driver" discounts and loyal customer discounts. Lumping your classic car coverage with your daily driver policy through Geico, Travelers, Progressive, Allstate or any of the other dozen automobile insurance carriers will usually end up costing you in the event of a claim. Why?
Standard auto insurance typically pays "Actual Cash Value" (ACV), also called "depreciated book" or "replacement cost minus depreciation." The older a car is under this type of policy, the less value it has - regardless of the premium you pay. It is usually not the best choice for classic cars, antique cars, muscle cars or vintage truck.
Some auto insurers offer a "Stated Value" policy. These are better than an ACV policy because they allow you to "state" a value greater than its depreciated "book" value. But, the Stated Value policy still depreciates vehicles. The best collector policy is called "Agreed Value" - meaning the full insured value of the vehicle is guaranteed - no depreciation and no hassling with an adjuster trying to prove your vehicle's value.
One example is a policy offered by Grundy Worldwide Insurance called Collector Car Insurance. This insurance is very affordable, and YOU have control over much of the cost because you actually work with Grundy to arrive at an "Agreed Value" when your policy is written. If an accident or theft occurs, you receive the agreed upon value - no questions asked! A car with $20,000 in restoration costs could be insured for about $120 per year. There are no restrictions on the number of miles you can drive, or how often you drive, as long as it is not your daily driver. (See other insurance options below for daily drivers.)
Another policy for collector cars offers coverage while your vehicle is in the process of being restored. What's unique about Restoration Coverage is that the policy value can increase as the restoration continues. So, as the value of your car (and the money you have invested into it) grows, so does the amount of coverage on your policy. We think this is a terrific "peace of mind" policy, and embraces the gift of classic car restoration - to get out on the road and enjoy your ride!
Grundy Worldwide Insurance
Hagerty Classic Insurance
J.C. Taylor Insurance
Heacock Insurance Group
American Collectors Insurance
Classic Auto Insurance
www.classicins.com 800-360-2277 or 800-397-0765
Condon & Skelly
Northeast Classic Auto Insurance
"Chrome" by American National
Collector Car Insurance Agency
Motorsports Insurance Services
NCM Insurance Agency (specializing in collector insurance for Corvettes)