Owners of collector vehicles often mistakenly believe that their cars can be covered by their regular automobile insurance policies. Although this is not the case, collectors car insurance policies are readily available to protect vintage vehicles against loss.
Conventional automobile insurance policies can determine coverage for cars based on their actual cash values. These amounts, which usually decrease over time, can be determined by subtracting annual depreciation from the replacement costs of the cars. Thus, as the automobiles age, the compensation policyholders may receive in the event of a loss may diminish substantially.
Collector cars, by contrast, are typically valued based on documented, agreed-upon values (often called guaranteed values) that can be determined by appraisals, reputable valuation guides or some other professional means. These valuations often consider the impact of appreciation and can typically be revisited when it’s time for policies to renew.
Benefits and Premiums
When a collectors car insurance policy is negotiated, its benefits and premium are usually based on considerations such as how the vehicles being insured will be used, where they are stored and how many people are authorized to drive them. The cost and scarcity of replacement parts may also be discussed, along with medical reimbursements and towing provisions.
Owners should not assume they are protected. By using collectors car insurance, owners can enjoy the sense of confidence that comes with knowing they have adequate insurance protection in place.