Insuring Your Classic Car
It is blatantly clear there is a huge difference between an everyday car and a classic car, but is it clear that you need a completely different type of auto insurance policy for the two? Well you do!
When looking to insure your classic car, there are three main value classifications you will need to consider: actual cash value, stated value and agreed value. So what do these terms even mean? Let us break it down for you:
- Actual Cash Value means if anything were to happen to your classic car, its value will be based on replacement cost minus depreciation. Meaning, what is your car worth today…in cash?
- Stated Value is the value you place on your vehicles, however should damage be caused to your classic car you may be paid less than the stated amount. If the claims adjuster finds that the actual value is less than the stated value on your policy, they are only required to pay you the lower amount. Periodic appraisals are often required for this type of classic car insurance policy.
- Agreed Value is tailored more to your specific classic car. The agreed value is determined by an appraised value of your classic car, but must be agreed upon by both you and your agent. If your car is totaled or stolen, you will be reimbursed for the full value that was agreed on by both parties.
If you are a classic car owner, it is more likely than not you are a hobbyist or collector and have extensive knowledge on the value of your classic car. In order to keep your prized possession properly covered, you need to work with an experienced agent who also understands how valuable your 1969 Corvette Stingray truly is in today’s market.
Contact our experienced agents at Insurance & Mortgage Services to ensure your classic car is properly covered!