Insure Your Classic Car The cost of insuring your car is typically reduced as your car ages. The older your car gets, the less money it is worth, meaning that your premiums are reduced. In the event of an accident, insurance companies would have to pay less on your claim. This all changes, however, when you’re trying to insure a classic car. The blue book value of these cars is a mere fraction of their actual value, especially if the vehicle has been fully restored. A different type of insurance is needed to cover the market value of the vehicle as opposed to the ‘cash value’ listed in the blue book.
Full Coverage Two basic types of insurance exist when it comes to getting coverage for your classic car, stated value insurance, and agreed value insurance. Stated value insurance allows you to declare the value of your car and insure it for that amount. It is possible, however, that the value of the vehicle according to the policy may depreciate, so check the fine print before signing. Agreed value is the recommended type of coverage for insuring classic cars. You and your insurance provider agree on a set value of a vehicle and your car is insured for that value. In the event of total loss of the vehicle, the full amount is paid to you, the insured. The value of the car will n ever depreciate over the course of the policy. Keep in mind that there may be some restrictions for this type of policy. Many insurers restrict the number of miles you are allowed to drive the vehicle per month or year or require you to transport the vehicle via an enclosed trailer. Your policy may also only cover your vehicle during specific events like parades or car shows.
Be Specific The key to quality coverage for your classic car is to know the details of your policy. Be very clear with your provider regarding what type of coverage you wish to have for your classic car. Get all the details and know exactly what you need to do to comply with the terms of your policy.
It is also important that you periodically review your policy and adjust it as needed. If the vehicle will be garaged for an extended amount of time or if the value of the car has increased, you will want to adjust the policy accordingly. You may also be able to insure your hot rod or custom car with an agreed value policy. Check wi th your provider to see what type of insurance is available to you. Keep in mind that some insurers only insure stated value policies and you may need to seek out a specialty insurance agent for an agreed value policy. For classic cars, custom cars, or your family vehicle, quality auto insurance is a must. If you are looking for auto insurance in Magnolia, TX, Prodigy Insurance is here for you. Give us a call, visit us online, or stop by our office today for a quote!
Photo Credit: http://collecting.wdfiles.com/, http://autobahnmotorsgroup.com/