Why Should I buy Classic Car Insurance for my Classic Car

By Private Funding Money

Classic Car Insurance (or Collector Car Insurance) is different than regular auto insurance; it is created by passionate enthusiasts for collectors to protect their classic cars. This article outlines some of the main reasons why specialty classic car insurers like American Collectors Insurance grow and thrive in an expanding auto insurance market.

Tailored Insurance Protection for the Collector Car Industry

Agreed Value Policy: A Classic Car Insurance Policy is generally based on the “Agreed Value”, so you will know your vehicle’s value if involved in a “Total Loss” before the claim occurs. On a regular / standard auto insurance policy, your car’s value is generally determined after the claim occurs, and is usually based on factory-installed equipment. For a classic car that you have spent time and money to partially/completely restore, it is extremely important to have the additional peace of mind of knowing that you have an appropriate Agreed Value limit on the policy.
- Your restored classic car is different than a unrestored car: Many collector car owners make substantial investments to personalize, preserve, restore, and improve their car so that it is different (and more drivable) than when it left the factory. In general, unless vehicle upgrades have been previously disclosed and endorsed onto a regular auto policy, most standard / regular auto insurers limit their claim repair scope and the value of their settlement offer on “total loss claims” to original equipment that was installed on the vehicle at the factory. This means that if you insure your vehicle on a regular auto insurance policy, you may be (unpleasantly) surprised at the settlement offer you receive on your nicely restored classic car after a total loss claim. Post-factory improvements that you may have upgraded during your classic car restoration include, but are not limited to:
- Examples of Post-Factory Vehicle Improvements:
  - Drivability improvements: e.g., upgraded suspension, installation of power steering,
  - Performance improvements: e.g., upgraded engine, transmission upgrade,
  - Safety Features: e.g., upgraded disc brakes, LED lighting upgrades,
  - Comfort improvements: e.g., installation of air conditioning, upgraded interior finishes, and/or
  - Visual improvements: e.g., special non-factory paint colors, new wheels/rims, additional customizations, etc.
- Repair Shop of Choice Claims Philosophy: Not every mechanic/shop has the knowledge, credibility, or skillset to repair someone’s damaged collector car. We allow customers to select a repair shop that they know and trust. Our specialized classic car adjusters thoroughly review the estimates to ensure that they are appropriate and reasonable.
- Optional Coverage Bundles: We offer flexible reimbursement plans for: Towing, Labor, Roadside Assistance, Car Show Expense, Emergency Travel Expenses, Emergency Evacuation Expense coverage. We’ve developed numerous endorsements that especially relevant / meaningful for owners of older classic cars, as well as newer collector vehicles.
- Significant Premium Savings (compared to Traditional Auto Insurance): As a classic car insurer, we only insure collector vehicles i.e., cars that are not “daily drivers”, stored appropriately, and used very gingerly (“babied”). In addition, collector car insurance offers you a choice of mileage plans to better reflect your collector vehicle’s annual usage. Because we underwrite and service policies accurately, we can not only offer a policy with better coverage, we can also charge less, up to 40% less than regular auto insurers do on the same vehicle. Because you don’t drive your collector car like a daily driver, you shouldn’t have to insure it like one.
- Low Deductible Options: Collector car insurers typically have much lower deductible options available for your classic car policy (e.g., $0, $100, or $250) than are typically available from regular auto insurance companies. So, if your classic car is involved in an accident, your out-of-pocket cost will likely be substantially less with a classic car insurance policy.
- Employees Experienced in Collector Car Insurance (Underwriters / CSRs / Claims Specialists)
  - Collector Car Knowledge and Passion: We have a large team (70+) of Collector Car Specialists who both understand and relate to our customer’s classic car passion. Because this is all we do, we recruit people who love classic cars as much as our customers do.
  - Experienced Classic Car Underwriters: Our seasoned collector car underwriters are knowledgeable about collector / classic cars. As you know, the condition of an older car can vary from a “rust-bucket” to a SEMA show-quality vehicle. Our team of experienced underwriters are prepared to quickly establish insurance eligibility and knowledgeably discuss classic car values with customers like you to help you determine an appropriate Agreed Value limit for your policy. This service helps you to feel comfortable that your vehicle is neither over-insured (i.e., you pay too much for insurance) nor under-insured.
  - Specialized Claims Adjusters: Our classic car team has the experience, skill, and specialized knowledge to adjust a classic car insurance claim accurately (e.g., labor rates for classic car repair shops, time estimates to complete classic car repairs, knowledge about repair techniques needed on one-of-a-kind/unique vehicles), and can help determine sources for available classic car parts (e.g., OEM parts, reproduction parts, NOS parts, used parts, classic car parts suppliers) . Knowledgeable adjusters tend to adjust claims right the first time, leading to fewer supplemental payment requests and resulting in higher customer claims satisfaction.