Auto Insurance Tips and Tricks- Auto Insurance Isn’t for Classic and Antique Cars
by Bill Gates, 2010-04-14
Plain old, original, standard auto insurance policies have come a long way. They now feature a lot of benefits and coverage that they didn’t before. However, one thing that they still aren’t good for is the antique or collectible car. There are many problems with trying to insure a collector car under typical auto insurance, but the biggest issue is the ‘replacement value’ versus ‘collectible value’. Here’s how it works:
If you insure a car, with full coverage insurance it will be covered for the amount that it would cost to replace it at the time of the accident, with depreciation considered. That means that if you had a car that was worth about $10,000, insurance would pay you that to replace it.
If you insure a classic car this way, you will only be given its replacement value. The replacement value of a car like this is not nearly sufficient to cover the actual collectible value of the car. Therefore, you need to have an insurance rider, or an additional coverage put on your policy to include protection for the collectible asset that the classic car has become. Then, instead of getting $15,000 for a 78 Corvette because of its age and retail value in mint condition, you can get the full $100,000 that it’s worth based on collectible status and the work that you’ve put into it.
Collectible cars and antique cars are a great hobby for many people. Any car enthusiast will tell you that having the extra insurance that is necessary to truly protect these cars is an investment well made. In the event that your antique or classic car is stolen, broken into, wrecked, or otherwise damaged, you’ll actually be compensated for its worth, not just the replacement value. This is critical to any car collector because you will lose out on the investment value of your vehicle if you are not properly protected. No one wants to spend all their time and money investing in a classic car only to have it stolen and get a check for a fraction of what the car was worth.
Understanding insurance can sometimes be complicated. Fortunately, at InsuranceQuote.com our goal is to simplify the process and make it easier for you to get the insurance that you need. It doesn’t matter if you’re looking for regular old car insurance or antique/classic car insurance, because you can fill out our quote form in under 10 minutes and be on your way to getting the protection that you need in no time at all.