An Introductory Guide to Classic Car Insurance
One of the more challenging types of policies to purchase is one to cover a Classic Car. Agents are often unable to assess accurately the value of a classic car, and may offer a policy that may not be adequate, or one that doesn’t cover the car completely. It might be difficult to find a local agent who understands classic car insurance. However, seeking this type of insurance online presents its own challenges. Finding the correct overage for a classic car online requires one to follow some important steps.
Get your paperwork in order
You will need to put all your documents for the classic car together. This would include all receipts for the original purchase of the classic car, as well as any repair parts your may have bought, repairs or restoration costs. If you have replaced any of the cars’ original parts, make a list. It is also important to note if any replacement parts were original or aftermarket. Make note of the VIN number of the car, (it may not have one) the mileage, and what type of engine is in the car. Additionally, is it the original engine or have you replaced it. It would be helpful if you have any original documentation from when the car was purchased.
Use a scanner to make a digital copy of all the car documents. The best format to use is PDF. If the papers have information that could be used to steal your identity, such as your address, social security number, or your birth date, this information should be blacked out.
Use a digital camera to take detailed photos of the automobile. You should take several shots from all angles, inside and out. If the car has any distinctive characteristics, make certain to get photos of those as well.
Get an appraisal on the car from a reputable appraiser.Making a comparison of the latest sales of similar cars would be useful. Make sure to include information about the appraised car, and scan this information.
Look around for the best quotes
Get online quotes from several different sources. Whenever possible include the documentation you have scanned into digital form.
Most insurance agencies will give you a cost estimate for insuring your classic car. Some websites may actually have information available from several different companies, and be able to give you multiple quotes. There is often a deadline as to how long the quote will be viable. You will need to accept or reject the quote by this date.
When obtaining your quotes, request an “actual cash value” policy. The maximum amount in this type of policy is considered the actual cash value to replace the car. Many classic cars actually increase in value, rather than depreciate as modern cars do. Therefore, the current appraisal value is the amount you should request. Make sure you keep the appraisal current when you renew your policy, as this is necessary to get the correct value in a claim.
There are also “stated amount” policies where the insurer sets a maximum amount that they will pay you for loss or damage. In other words, if your car is stolen and the value has gone up from the stated amount on the policy, you will still only be able to recover the market value for the car, not the actual cash value. Conversely, if the actual value is less than the maximum amount, you will receive the lesser of the two.
You should consider the different types of policies carefully to select what is best for you.
Get a quote from at least one local insurance agent, and compare that to your online quotes. Compare all the features, such as deductibles, coverage type, and any exclusions to the coverage.
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Car Insurance
