Collector Car Insurance - How to Insure Your Classic Car Investment

Your collector classic car is most likely one of your most prized possessions. You'll need the right insurance protection to make sure your car is covered, and your investment is safe.  Your local Trusted Choice Agent can help you protect your investment.  The following information is courtesy of Trusted Choice.

What Is Collector Car Insurance?

The main difference between traditional cars and collector cars is that collector cars often don't depreciate in value over time. The opposite is usually true. Collectors also often add customized parts to the vehicle, along with various improvements. Because of this, collector car insurance must be based on the "agreed value" of the vehicle at the time the policy is issued. 

The agreed value includes your entire investment in the car. Rates for collector car insurance are often cheaper than for traditional car insurance, since collectors often put more pride into the upkeep of their vehicles and drive them less than everyday cars. Traditional car insurance companies may not offer collector car insurance.

How Does Collector Car Insurance Work?

The key distinction between regular auto insurance and collector car insurance is agreed value coverage. You, the policyholder, and your insurance company must reach an agreement on the value of your collector car before your policy is written. An appraiser can help determine the value of your collector car, often between $10,000 to $100,000, or even more.

Once the agreed value is finalized, that becomes your coverage limit. Collector car insurance operates differently from traditional auto insurance because with the latter, insurance carriers tend to base your vehicle's estimated value by comparing it to similar models and how much their repairs often average. Insuring a collector car is similar to insuring a piece of artwork in terms of its perceived value.

Another benefit to collector car insurance is that the policy's payout doesn't decrease over time the way it does with traditional car insurance. The value of your collector car is likely to increase over time, rather than decrease like a "normal" car would. The coverage amount of your policy must be adjusted over the years to match the changing value of your collector car.

How Is the Agreed Value Determined?

The agreed value of your collector car will be decided by both you and the insurance company. You'll provide documentation like repair receipts, photos of your car, etc. for the insurance company to review to calculate your collector car's agreed value. 

Actual cash value, on the other hand, is calculated by a car's mileage, condition, age, and various other factors. The agreed value aspect of collector car insurance is what makes these policies key for collector car owners, because a traditional auto insurance policy will not include this. Agreed values in collector car insurance account for the time and money you have put into your prized collector car.

Benefits of Collector Car Insurance

When shopping for a collector car insurance policy, you'll be working with insurance companies and agents who are specially trained in insuring collector cars, vs. traditional vehicles. These independent insurance agents are well versed in the needs of collector car owners and how these special vehicles differ in value from everyday vehicles.

Collector car insurance comes with many important coverage options, like:

• Auto show medical reimbursement: Covers you if someone gets injured at a car show featuring your classic car.
• No attendance required: Covers your vehicle from numerous threats while you're away from it, like if it's being shown at a car event.
• Increased replacement cost: Covers the difference if your collector car's value if it increases beyond its agreed value.
• Spare parts coverage: Covers various types of incidents involving spare parts of your classic car, including theft and damage.
• Roadside assistance: Covers the need for roadside assistance, such as towing in the event of a breakdown on the road.
• Cash settlement option: An option to take the cash value of your collector car from your insurance company if your car gets lost or stolen. This cash settlement can be used however you like.

An independent insurance agent can explain even more benefits of having the right collector car insurance. 

To help you through the maze of coverages, carriers, premiums, and find ways to save money on your insurance, if you are on the Gulf Coast, contact your Trusted Choice agent, SouthGroup-Gulf Coast http://www.southgroupgulfcoast.com/ , SERVICE TEAM: Angelyn Treutel Zeringue, Tammy Garfield, Tammy Hogue, Denise Russell, Melissa Moran, Alex Treutel, Mark Strickland,  Anne Gillam, Michael Scardino, Joey Eagle, Cody Barnes, Wendy Butler and Melinda Teaford at SouthGroup Gulf Coast. You can reach us by snail-mail: 412 Hwy 90, Suite 6, Bay St Louis MS 39520 or 2505 Pass Road, Biloxi MS 39531;  email: info@southgroupgulfcoast.com, phone or text:228-466-4498 or 228-385-1177, fax:888-415-8922, FaceBook www.facebook.com/southgroup.gulfcoast. We have 2 Gulf Coast locations to serve you - 2505 Pass Road - Biloxi and 412 Hwy 90 Ste 6-Bay Saint Louis, MS.

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