So, you have just purchased the classic car of your dreams and you want to make sure nothing happens to it. You need to protect it with the best insurance policy possible but don’t want to take out a second mortgage to make it happen. What do you do?
"As car enthusiasts ourselves, we realize that classic vehicles may require more specialized services than our everyday cars," says McKeel Hagerty, CEO of Hagerty Insurance. "The most important advice we can give is to make sure your insurance carrier offers a Guaranteed or Agreed Value policy and then determine whether or not the carrier can fulfill the special needs that many classic vehicles have, especially at claim time."
Hagerty Insurance, the world’s leading insurer of classic cars, offers the following "Top Ten Things to Consider When Insuring Your Classic Car."
- Obtain a specialty classic car insurance policy rather than a regular use policy; it will usually save you money. Since specialty insurers understand that the risk for loss is far less in a classic car than in a regular-use car, the premiums are often much lower.
- Look for a policy with Guaranteed Value or Agreed Value coverage. This means your car’s value will not be depreciated at the time of a total loss. Actual Cash Value (ACV) or Stated Value policies can potentially depreciate your car’s value, reducing the amount of your claim.
- Pay just one liability fee. You can only drive one car at a time, so if you have multiple classic cars, you’ll want an insurance policy that charges you only one liability fee, or one that offers some sort of multi-car discount.
- Insure with a company that specializes in classic cars. A classic car insurance specialist who deals exclusively with older and rare vehicles will understand the special needs and costs that are associated with collector vehicles.
- Insure through a financially strong institution. Any insurance company you choose should have an AM Best rating of A- or better, which ensures the financial strength of the company.
- Avoid mileage restrictions. Classic cars should be enjoyed. Look for an insurance provider with no mileage restrictions, one that allows for pleasure driving.
- Look for a company that handles claims in-house. An in-house claims department allows for more efficient claims handling and ensures that the person handling the claim has experience with the unique needs a collector car may require during the repair process.
- Look at what your policy includes. Ask your potential insurance provider if they will cover spare parts, tools, high-valued modifications and paint jobs in the event of damage or theft.
- Check who can and cannot use your vehicle. Make sure that your classic car insurance provider will allow younger drivers and other family members to use the vehicle.
- Always keep your car insured, even if it is under restoration at a shop or in storage and not being driven. In the event of fire or theft, you’ll have to absorb the entire loss if your vehicle isn’t covered.
Hagerty Insurance Agency, Inc. is the leading insurance agency for classic vehicles in the world and host to the largest network of classic car owners. Hagerty offers insurance for classic cars, motorcycles and motorcycle safety equipment, tractors, automotive tools and spare parts, and even "automobilia" (historic or collectible items linked with motor vehicles). Hagerty also offers overseas shipping/touring insurance coverage, commercial coverage and club liability coverage. For more information, call (800) 922-4050 or visit www.hagerty.com.