Collector Vehicle Insurance

Collector vehicle insurance properly insures the investment that car buffs have made in their vehicles. Owners of collector vehicles often assume – incorrectly - that the only insurance option for their classic is to put it on their family auto policy.

However, collector vehicle insurance is much more affordable than standard auto insurance and provides broader coverage.Most collector vehicle insurance companies have some criteria that must be met in order to qualify for their programs.

For example, many companies have a driver’s age restrictions, mileage limitations, garaging requirements and vehicle age qualifications.
A collector vehicle insurance policy can vary greatly in coverage from the standard auto policy.

Most standard auto policies insure the vehicle for its current value, minus depreciation. This means that as the age and usage of the car increases, the value decreases. In contrast, collector vehicles, if well-maintained, increase in value over time. This is because they are not used as often or for the same purposes as a car that is driven for everyday use and their owners truly baby them.

To provide appropriate coverage for this situation, collector vehicle insurance providers typically offer Agreed Value Coverage, which basically means that the insured and insurer agree upon the value of the vehicle up front. This type of vehicle valuation will offer the full market value for the collector vehicle as stated on the policy and factor appreciation into the value at the time of loss. Some carriers will also offer low or no deductibles for comprehensive and collision coverage and often provide coverage for spare parts that are not on or in the vehicle. You won’t find that kind of coverage on your family auto policy.
References
Bergan, Laura "Everything old (or hot, modified, exotic, muscle, etc.) is valuable again" Insurance Journal, 2006-11-6. Retrieved on January 15, 2007.