How to Insure a Classic or Collector Car in the U.S.

 A classic car is not like a normal car. Its look and feel are different. Every classic car has a story. Some people keep it as a legacy. That's why its protection is also special. Regular insurance does not protect it if it is valued. For this type of car a classic car policy has to be taken. This policy is different from the normal coverage. The company sets the value of the car on the basis of its age and model. Many people do not use a classic car daily. Therefore, it is best to take a limited-use plan.

Collector car insurance

Collector cars are old or rare. Its value varies in the market. Collector car insurance is given according to its actual worth. The company inspects the car and decides the value. Insurance proof is helpful if you sell your collector car. The collector car is mostly used in shows and events. All these should be covered in the policy. Which companies impose mileage limits for these types of cars? If you do not drive the car daily, you may get a lower rate.

What to look at before buying a policy

You have to check a few things before buying an insurance policy. The company's experience with classic cars is important. You should keep the car's photos and maintenance records ready. The policy should have strong coverage for theft and damage. It is also important to get an appraisal report. This report tells the actual value of your car. You also have to define the use of the car. If it is used only for events, then tell the company. This way the premium is less and the coverage remains effective.

• Popular Coverage Options

Certain coverage options are crucial in classic and collector car insurance. Taking these options can protect you from financial loss. Such cars have both sentimental and market value. Therefore, it is important to get special protection for them. Regular auto insurance does not cover these cars. You need a tailored policy that understands just the needs of a classic car. Some key options are explained here, which you should check while selecting a policy.

• Agreed Value Coverage

In this option both you and the company decide on a fixed value for the car. If for any reason the car is a total loss, you get the agreed value. There is no issue of fluctuations in market value. This option is especially best for cars whose appraisal value is fixed. Often collectors do the restoration of the car themselves, and its cost is high. In the agreed value system you get the actual return of the restoration. In traditional insurance the actual cash value is given after deducting depreciation. But in the agreed value system, the rare and classic status of the car is also counted.

• Spare Parts Coverage

Parts for classic cars are not available in the normal market. If a rare part gets damaged after an accident or loss, its replacement is costly. Therefore, it is important to take spare parts coverage. Often companies provide parts coverage up to a fixed limit. This option becomes even more important if the engine or body part of your car is imported. In this, you can also specify a list of parts that are at high risk. This cover gives you extra support even at the time of restoration.

Extra Features Include:

• Towing and roadside help are in accordance with classic vehicle standards.
  
  

• Coverage is also available during the restoration phase.
  
  

Occasional Use Policy

Classic and collector cars are not driven daily. They are used for special shows or events. Therefore, it is beneficial to have an occasional use policy. Such policies define an annual mileage limit. If you use the car for a limited purpose, the premium is reduced. Companies also look at where you store the car. Garage storage proof can make the premium even lower. If your car is parked outdoors, the risk of theft is higher and the premium is increased.

Policy Requirements May Include:

• Proof of limited use to show attendance
  
  

• Secure garage storage and anti-theft features

The occasional use policy also provides protection during maintenance. If you are taking the car to the mechanic and any damage occurs, the policy covers it. But you have to declare beforehand for what purpose the car is being used. Many companies also demand trip logs in which distance and date are written.

Show Events Ki Coverage

Many people keep classic cars only for shows. The car is displayed at such events. People admire it. Many shows also give awards. Insurance companies provide extra coverage for such events. You have to ensure that it is covered under the event policy. If the event is official, the claim process is simple. You have to show the event details and the car's entry form to the company. 

Some policies also cover transportation damage. When you take the car in a trailer, there is a risk of scratches or dents. Special show coverage handles this risk. You should also keep a photo record of the parts inside the car. Many people file damage claims after the events. If there is no record, then the company can deny the claim. It should be mentioned in the policy that the car is in show condition.

Protection of damage and theft

The value of classic cars is high, so the risk of theft is also high. Insurance should have strong theft protection. Parts of many old model cars are also expensive. If the engine or body part gets stolen, it becomes difficult to claim. A list of spare parts should be added to the policy. You should keep proof of every valuable part. Photos and receipts are quite helpful. 

The company should be told which alarm or lock system the car uses. The garage's CCTV or smart lock also provides extra protection. If the car is parked on the road, the premium is higher. Along with theft, accident damage should also be covered. If it gets damaged due to some other driver's mistake, protect it. That is why it is better to take full liability and collision coverage.

Why is it necessary to get appraisal done

The actual value of a classic car cannot be known from the market. That is why you must get an expert appraisal. The appraiser estimates the value by looking at the condition and model history of the car. The insurance company takes this appraisal as the base. Many companies do not approve a claim without an appraisal report. A trusted expert must be chosen for appraisal. 

The report contains details of the car both inside and outside. Engine, paint, seats, and mileage must be mentioned. If you do any new upgrade, you must get a new appraisal. You must keep a record of this report with your policy. It is good to update the appraisal every 2 or 3 years. Market value keeps changing, so it is useful to get a new report. You can also update the coverage by sending a new appraisal to the insurance agent.

Coverage Tips

These simple tips can be helpful in choosing insurance:

• Definitely check out the company's classic car experience.
  
  

• Agreed value coverage is a safer option.
  
  

• It is helpful to define limited use of the car.
  
  

• It is important to maintain a record of spare parts.
  
  

Agreed Value vs. Stated Value

There are two options in classic car insurance. First is an agreed value in which you and the company fix the worth of the car. Second is the stated value, in which you give an estimate and the company adjusts it at the time of claim. Agreed value is safer. You get as much as you write. In stated value, the company checks the market rate.

 If the value is low in the market, then you get a lesser claim. Many people take stated value to save costs, but it becomes difficult at the time of claim. In agreed value, the premium is slightly higher, but you get peace of mind. You do not face any delay in the claim process. If your car is rare, then the agreed value is the best. You should get the agreed policy along with the appraisal report. This gives confidence to the company, and you also feel satisfied.

How much liability do you need?

The liability limit also plays a role in classic car insurance. If you damage someone, the liability protects you. Many states have a minimum liability fixed, but it is better to take a higher limit for a classic car. If someone gets hurt at an event or show, pay the policy. 

The policy is also quite useful if a pedestrian or another car is affected. You should cover both property damage and bodily injury. Taking a limit higher than the minimum is secure in the long term. A high limit helps if there is a court case. Many people also take umbrella policies, which provide extra protection. If your car is expensive, the liability limit should also be strong. You should also consider your personal risk along with the legal requirements of your state.

Towing and Storage Coverage

Many classic cars break down. That is why it is important to get towing cover. It is better if you also get roadside help. Many policies cover towing for a limited number of miles. You should check that the towing limit is suitable for your location. The insurance rate is lower if the car is stored in a secure garage. The storage location policy should mention it. The risk of fire or flood should also be covered. If the car is kept in an open area, the risk of damage increases. It is useful to show proof of storage to the company. Details of the CCTV or lock system should also be given.

Conclusion

A classic car is an investment. It is every owner's duty to keep it secure. Regular insurance does not protect a classic car. You need to take a special policy that covers the agreed value and rare parts. There should also be protection against theft and accidents. Show events or towing should also be covered. It is important to get an appraisal report and update it. The type and limit of the policy should be chosen carefully. Bullet point tips and the subheading section help you. Every car owner should insure his classic car in a legal and smart way. This is not just following a rule but a responsible step.