For The Love Of Cars, insight on insuring classic vehicles

2018-09-24
By: Denise Koslowsky

Some people just really love cars. Owners of collector cars may spend hours searching for a new vehicle to add to their collection or sacrifice time to find all the elements they need to restore that perfect automobile. The classic car enthusiast is as passionate about the cars they love as we are about perfecting their insurance coverage.

What Makes A Car A Classic?

Generally speaking, a classic car is 10-24 years old. A car is not
considered an antique until it is over 25 years old.

Do I need a different type of policy for my classic vehicle?

In a word, yes.  The main difference between standard automobile insurance and a policy designed for a classic vehicle is how losses are settled. With standard auto insurance, the policy typically provides coverage on an Actual Cash Value basis.  This means you will be paid the market value (or Blue Book Value) of the vehicle should it be lost, damaged or stolen. For classic or collector cars, the policy is typically settled on an Agreed Value basis.  With agreed value you and the insurance carrier will agree on the value of the vehicle at the time it is insured.  Often an appraisal is required before the policy will be issued.

Because classic and antique cars are not primary use vehicles, there is generally a steeply discounted price, and often there are mileage limit requirements.

Other than the valuation, a policy for a classic car will offer features that are very important for people who love their cars.  Some of those features include:

• There is a $0 deductible. All policies for classic and antique cars offer comprehensive and collision coverage with no deductible.
• You get to choose your own body shop. Chances are, you have already established a good relationship with a body shop. You know you can trust them and you value the work they do, why would you want to go anywhere else?  With many standard auto insurance policies, you have to take your car to a network body shop.  If you choose to go out-of-network, your repairs will cost more or perhaps not be covered at all.
• The use of OEM parts. With a collector car policy, your mechanic is free to find an authentic and original part for your vehicle and use it to make any needed repairs without any additional fees.

Finding the Right Coverage
The coverage for a classic car is completely customizable.  Once you begin working with Advocate, we will take the time to identify the unique things about you and your vehicle so that we can tailor your policy so that it meets your specific needs.

To find a policy suitable for you we will look at factors such as:
 –   Where the vehicle is stored
–   What contests or shows you will be entering the car
–   The different ways you intend to use the automobile
–   The risks to which your vehicle may be exposed

Our partners at Chubb offer Collector Car Insurance with
awesome features such as:

• No mileage limits so you can drive your classic auto as much as you desire.
• Restoration Referrals to make sure your vehicle gets the attention it deserves by professionals who are experts in
  their field.
• Automatic coverage (30 days) for purchases of cars to add your collection.
• Coverage of up to $3000 for damage done to your trailer used in the transporting of your vehicle.
• Choice of towing company should your vehicle become disabled and need help getting to the shop.
• Uninsured motorist coverage

If you own a classic car and have questions about your insurance coverage, give us a call.  Advocate Brokerage can review your current coverage and help you to determine if the policies are best suited to your needs. We would also be happy to answer any questions that might help you better understand your coverage so you can enjoy the peace of mind that comes knowing your beloved vehicle is fully protected.