For individual car collectors, having proper insurance is essential for their prized investments and irreplaceable in terms of monetary and sentimental value. Unlike standard auto policies, collectors car insurance considers the unique nature of these specialty vehicles.
Why Collector Car Insurance?
Collector car coverage is a type of specialty auto insurance designed specifically to protect vehicles of historical or collectible value, such as antique cars, classic cars, exotic cars, or muscle cars.
Premiums depend on the actual cash value of the vehicle rather than the replacement cost. Policies often provide flexible mileage limits, spare parts coverage, and protection during collection-related events.
Typically, a car is considered a classic car if it’s at least 25 years old. To qualify for collector car insurance, cars must meet specific guidelines that classify them as collectors’ items. Key eligibility factors enable insurers to tailor coverage to the storage, maintenance, and usage needs of different collector vehicles.
Key Features of Collector Car Insurance
Getting the right insurance for your car starts with understanding the details of collector car coverage.
Agreed-Value Coverage
Agreed-value coverage is another core element of collector car insurance. It allows the insured and insurer to establish and agree on a set dollar value for a covered vehicle based on an expert appraisal. This agreed amount becomes the payout the policyholder would receive in the event of a total loss, regardless of any depreciation or market changes.
Unlike standard auto insurance, which pays actual cash value based on depreciation, agreed-value coverage locks in the collector car’s worth at the onset. It guarantees the vehicle’s insured value will not decrease over time.
Mileage Restrictions and Usage Guidelines
Because collector vehicles are not driven regularly, collectors car insurance includes limited mileage plans that accommodate their usage. Usage guidelines also regulate how often and far you drive a collector car.
Limiting mileage helps minimize wear and tear and the risk of accidents. Usage restrictions aim to preserve the vehicle’s value and condition.
Restoration Coverage
Collector car insurance usually includes coverage for restoration projects to protect the investments collectors make when having vintage vehicles professionally restored. It covers the car throughout the restoration process and can include transportation to and from repair shops.
Specialized Appraisal Process
Accurately appraising the value of collector cars is crucial for setting agreed value coverage, premiums, and payouts in the event of a total loss. Specialized appraisers inspect the vehicle, assessing its rarity, condition, improvements, and documented history.
This thorough appraisal provides a fair valuation and serves as the basis for the vehicle’s insured value. Precise appraisals help ensure collectors adequately insure their prized investments. Regular re-appraisal also makes certain coverage keeps pace with any changing market values.
Coverage for Spare Parts and Accessories
Because collectors invest substantially in spare parts and aftermarket accessories for their specialty vehicles, collector car insurance generally includes coverage for these as well. A spare part collection is essential to the proper maintenance and restoration of vintage cars.
Takeaways for Collector Car Enthusiasts
Unlike standard auto policies, collectors car insurance addresses the unique usage, storage, and maintenance needs of prized classic and antique cars. By working with providers like Provident Protection Plus that offer customized agreed value coverage, usage guidelines, restoration protection, and more, individual car collectors can safeguard their investments.
About Provident Protection Plus
For more than 65 years, Provident Protection Plus has served businesses and residents across several states nationwide. Today, we are a wholly owned subsidiary of Provident Bank, the region’s premier banking institution. To learn more about our coverage options, contact our specialists today at (888) 990-0526.