What Is Classic Car Insurance? | Classic Car Insurance Education


Unique like the classic cars themselves, the coverage options available under a classic car insurance policy are equally diverse. For instance, classic car insurance policies may offer tiered mileage plans, allowing policyholders to select a plan with a limited number of miles driven annually in order to reduce policy costs.

In addition to this, many classic car insurance policies provide spare parts coverage, which can be crucial for collectors. American Collectors Insurance, for example, provides coverage for spare parts up to $500. This can be helpful in the event of damage or loss to spare parts. In essence, the specialized coverages included in classic car insurance policies can extend to automobile memorabilia, along with liability, personal injury protection, and other standard coverages.

Agreed Value vs. Stated Value

‘Agreed value’ stands out as a critical aspect of classic car insurance. This form of coverage guarantees the car’s full value without depreciation, unlike ‘stated value’ which may pay the lower of the agreed or actual cash value including depreciation. In the case of a total loss, agreed value insurance ensures the payout is the value agreed upon at policy inception, which is beneficial since classic cars may appreciate over time.

To establish an agreed value, a classic car generally requires an appraisal, with both the insurer and owner agreeing upon the value, which is then used to set the insurance rate. This is an important aspect of classic car insurance as it allows for adjustments in the coverage limit to align with any increase in the value of the vehicle, providing ongoing suitable protection.

Additional Coverage Options

In addition to the standard coverage options, classic car insurance policies can include additional features tailored to the unique circumstances and needs of maintaining and transporting classic cars. For instance, special towing considerations for classic cars, such as flatbed towing, are available to prevent damage during transport.

Classic car insurance policies can also include classic car insurance cover for the replacement cost of rare or original spare parts. These additional coverage options cater to the unique circumstances and needs of maintaining and transporting classic cars. Given the potential high value and specific care requirements of classic vehicles, such coverage options are not only helpful but often necessary.

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