Many car owners are still confused on the type of auto insurance they should get for their classic car. Most owners get standard auto insurance thinking it would be sufficient to cover their car’s needs. However, a more suitable one is specialty car insurance for classic cars.
This policy is an agreed value insurance. Let’s compare the difference between standard auto insurance with agreed value insurance.
Standard insurance estimates the value of your car by following certain guidelines. The value written in your policy is a floating value because this can change over time. The value goes down as the car ages. If something happens to your car, the value will be reassessed and as in most cases, it will be lower than what is written on your policy.
With agreed value insurance, you and the insurance company compromise on the value of your car. The owner sets the value and the insurer negotiates. In the event of total loss, the insurer will pay out the value written on your policy. This type of policy is best suited to classic cars because the value is not based on the age of the vehicle. You’ll be confident that your car isn't misquoted.
Agreed value insurance is the best type of specialty car insurance. The value doesn’t depreciate after a while and you know that your car will be covered properly in case of an accident. If you want to find out the value of your classic car, request for an agreed value car insurance quotation today.
About the Author
Drew Yagodnik is Vice President of Classic Automobile Insurance Agency, Inc. Classic Automobile Insurance Agency has been protecting collector, classic and exotics since 1992.