A standard auto insurance policy will usually provide adequate coverage for your daily use car. However, if you own a classic car, you're going to need a different type of policy. Unlike most vehicles, classic cars typically appreciate in value. They are also more difficult to appraise and might require extensive research in order to determine a fair replacement value. These two factors make it essential that you purchase a policy tailored to the needs of classic car drivers.
Types of Available Auto Insurance
When shopping for coverage, you'll find that there are three specific types of auto insurance available: actual cash value, agreed value and stated value. A standard auto insurance policy provides actual cash value coverage for your car. The coverage amount is determined by an insurance adjuster when you make a claim. However, if you disagree with the insurance adjuster's determined value, you may have to enter into arbitration or file a lawsuit to obtain a larger settlement amount.
Agreed value insurance avoids this problem by determining the value of your classic car when the policy is issued. This type of insurance policy should state in writing the exact dollar amount you will receive in case your car is stolen or totaled in an accident. Agreed value insurance will also pay up to the agreed value amount to repair the damage your car incurs during an accident. For these reasons, agreed value insurance offers the best coverage for your classic car.
Stated value insurance is sometimes confused with agreed value insurance. Like agreed value insurance, stated value insurance allows you to determine the value of your classic car when you purchase the policy. However, unlike agreed value insurance, stated value insurance does not guarantee that you will receive the stated value of the car. Your insurance company can also settle for the actual cash value of the vehicle. Once again, if you disagree with the amount you are offered, you may end up in court.
Purchasing Coverage for Your Classic Car
Now that you know you'll need an agreed value insurance policy, it's time to get an appraisal. Use the services of a professional appraiser or do your own research to determine the correct amount of coverage. Once you know what the agreed value should be, talk to your insurance agent.
Before you purchase your new policy, be sure to verify other aspects of your coverage. Ask if the policy covers original parts and lets you chose the company that will make the repairs in case of an accident. You may also want to ask about additional coverage for a big ticket item, such as a mint condition roof rack or matching original luggage, that might be stolen off of your classic car. A special rider can often be added to cover these items specifically. Finally, ask about mileage restrictions. Your insurance agency may offer a low rate in exchange for driving less than 2,500 or 5,000 miles.
If you have additional questions about Fort Lauderdale classic car insurance or would like a free quote, call (888)888-8888 to talk to an agent.