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One of the primary requirements for maintaining your classic automobile is getting it covered with good collector car insurance. It is a legal requirement as per continuous insurance enforcement (CIE) rules to have your car covered by insurance at all times, even if you drive it only once every few months. Every vintage car owner should have a clear understanding of the clauses, coverage, uses and advantages of the appropriate insurance plan.
The coverage on a vintage car can be taken on the Actual Cash Value (ACV), value at the time of loss, or the Agreed Value, value at the time of policy purchase. The ACV is determined by the insurance company with no scope for change. Whereas, agreed value is the value determined at the time of drawing up the policy, which is mutually agreed upon by the insured and the insurer.
With an Agreed Value policy, if there’s a claim, you are handed a check with no further discussion. An Agreed Value policy often costs much less than an ACV does. A 1959 Cadillac Series was lost in Hurricane Sandy. The insurance company agreed to pay $5500 based on the ACV policy the owner had on the car. The owner is now trying to prove that the car was worth $75000. Had she taken an Agreed Value policy, she could have bought another Cadillac with the insurance money she is now fighting for. An ACV policy is good to have when you have a driver who drives your car regularly. However, Agreed Value policies are what work best for most classic cars.
It is important to get your classic car appraised before you go in for an insurance policy. Most policies would state that the market value is what will be paid when there’s a write-off. However, your car may be worth more than what an insurance company will appraise it for. By arriving upon an agreed-value for your classic vehicle, you can ensure that your policy covers the current value and the full worth of your car. You must also check with your insurer about getting the agreed value updated every year, as the worth of vintage cars increases as time goes by.
Many vintage cars feature unique accessories and customized parts. If your car is highly valuable, you may want to pay extra to get a cover to replace parts with authentic ones. You should also decide on a maximum mileage limit and then understand how the policy will stand if you exceed the limit, and if you can change the mileage limit in the future.
Vintage cars usually don’t depreciate in value as long as they are well maintained and used infrequently. The best policy is one that balances out your budget and insurance coverage needs as well as is beneficial to your needs for your car or in the way you plan to use it.
Get your car valued by Classic Auto Insurance. You can then opt for our standard classic car insurance plans, with which you will get agreed value, next term mileage rollover and roadside assistance. Our competitive premiums and car club membership discounts will reduce your insurance costs greatly. Our tiered mileage plans, multiple deductible and payment plan options will help you customize your policy to suit your needs. Contact us today for a free collector car insurance quote.