Collector Vehicle Insurance
Driving a collector car down the road is sure to turn some heads. Due to the specialty car designation that comes with collector cars, they will need special auto insurance coverage to keep them safe off and on the road. Since collector and classic cars are a little different than modern vehicles on the road, the way that they are valued will also be a little different.
When you invest in a collector car insurance policy, you will have the choice to insure the car for actual cash value or agreed value. Knowing the difference between the two coverage options can help to make sure that you are properly protected. Take a look at these coverage basics to help you decide which option will work best for you.
- Actual cash value – also known as ACV, this coverage will provide a payout for what your vehicle was worth in today’s market. If you are in an accident and your car is totaled, an adjuster will head out and take a look at the car. They will then use various sources to decide what your car was worth in the current market. Whatever the value is that they decide on is the amount of the payout that you will receive.
- Agreed value – if you believe that your collector car is worth more than what the current market dictates, then you will want to consider agreed value. With an agreed-value policy, you will work with your insurance agent to decide how much you think that your vehicle is worth. If your vehicle is totaled, you will then receive a payout of that amount.