What You Should Know About Collectible Car Insurance Coverage
Classic cars and other vehicles with a vintage appeal are extremely valuable on the secondary market. In fact, many of these antique automobiles are worth more than their actual monetary value. When properly appraised, a classic car can earn its keep as a collector’s item, with its true worth estimated in the millions of dollars. Some classic car insurance agencies offer policies that pay as much as twenty-five percent of the current market value for any classic or rare vehicle. The primary types of policies offered by such agencies cover accident damage, comprehensive coverage and loss of use coverage. Each type of policy has a different level of coverage, which is based upon the specific needs of the insured.
Most classic car insurance policies will specify that the policy will pay up to twice the actual cash value of the vehicle, in the event that it is damaged or stolen. The exact amount of coverage will depend upon the specific policy, so it is important to read the policy carefully. Classic auto insurers will usually require that the car be valued by a certified appraisal performed by a qualified appraiser. This is done according to the guidelines established by each state’s department of revenue.
Some classic car insurance policies will also specify that the insurer will pay up to twice the actual cash value for any spare parts that are used during the time the vehicle was operated. This coverage may be called “special repair” coverage. Usually, a separate verification is done when the claim is made, so that the insurer knows the value of the spare parts. Spare parts that are not covered by the agreed value can usually be sold back to the company at a current value higher than the agreed value, in order to recover their losses.
There are many additional policy features that can be found in various policies. In general most classic car insurance policies will cover the vehicles in their own particular state, even though the owner resides in another country. This is usually referred to as a “collectible vehicle protection”. Most states, however, do not have any requirement to insure out-of-state residents at all, and many will only cover the vehicle if the driver has been authorized to drive the vehicle out-of-state. Many auto insurers also have requirements that the vehicle must be registered in the state in which they are insured. (Most states require a VIN number to obtain this information.)
Another coverage aspect that is often found in several classic car insurance policies is coverage for loss of use or deterioration of the vehicle. This type of coverage is typically only carried by the more serious auto insurers. Some policies may also provide coverage in the event that the vehicle is stolen. The amount of coverage that is carried by an auto policy will depend on what type of vehicle it is, and also what state it is in. Many auto insurers have special policies for classic vehicles that are over a certain age.
In some cases, many companies may not carry certain items into consideration when determining premiums. For example, many insurers will charge higher rates for drivers who own more than one vehicle that is less than twelve years old. The same is true for drivers who own classic cars that are over twenty-five years old. The age limit for coverage applies to the “year of make” as well, so it is important for the consumer to consult their auto insurer to get a precise determination of what they are charged.
The final aspect to classic car insurance coverage is the actual cash value or replacement value aspect of the coverage. With this type of policy, actual cash value is determined by how much a vehicle is worth at the time of the loss. If you should ever be able to trade the automobile in for a newer model, then this will affect its actual cash value. It is recommended that consumers consult with their auto insurers about this aspect of their coverage. There are many different factors that can have an impact on its worth, including how much it has been improved upon over the years and how much it can be expected to increase in value.
The above aspects of classic car insurance are just a few of the many that can vary widely between insurers. It is important for the consumer to understand how these coverages differ so that they can choose an appropriate policy. Many insurers also offer additional services that are designed to supplement the more standard policies. These additional services can include things like giving extra coverages to classic vehicles or providing coverage for other types of automobiles that meet a set of specified criteria.