Brought to you by Hagerty...
You have just purchased the classic car of your dreams and you want to make sure nothing happens to it. You need to protect it with the best insurance policy possible, but don’t want to take out a second mortgage to make it happen. What do you do?
“As car enthusiasts ourselves, we realize that classic vehicles may require more specialized services than our everyday cars,” says McKeel Hagerty, CEO of Hagerty Insurance. “The most important advice we can give is to make sure your insurance carrier offers a Guaranteed or Agreed Value policy and then determine whether or not the carrier can fulfill the special needs that many classic vehicles have, especially if you have to file a claim.”
Hagerty Insurance, a leading world-wide insurer of classic cars, offers the following “Top Ten Things to Consider When Insuring Your Classic Car.”
1. Obtain classic car insurance with a company that exclusively deals with classic cars. They will understand the unique needs associated with collectible vehicles and can usually save you money. Since specialty insurers recognize that the risk for loss is far less in a classic car than in a regular-use car, the premiums are often much lower.
2. Look for a policy with Guaranteed Value or Agreed Value coverage. This means your car’s value will not be depreciated at the time of a total loss. Actual Cash Value (ACV) or Stated Value policies can potentially depreciate your car’s value, reducing the amount of your claim.
3. Properly Value Your Car. It is important to accurately value your vehicle when seeking a classic car insurance policy. Speak to your insurance agent or consult a price guide — there are a number of classic car price guides available to research the current market value of your vehicle.
4. Avoid mileage restrictions. Classic cars should be enjoyed. Look for an insurance provider with no mileage restrictions and one that allows for pleasure driving.
5. Roadside Assistance should include flatbed towing. Classic car owners are six times more likely to experience a break down than a claim. There are many types of roadside assistance programs available with insurance policies, but you want to make sure a guaranteed flatbed tow truck is included to fully protect your vehicle. Flatbed towing is one of the safest ways to transport a car since all wheels of the towed vehicle are off of the ground.
6. Look for a company that handles claims in-house. An in-house claims department allows for more efficient claims handling and ensures that the person handling the claim has experience with the unique needs a collector car may require during the repair process.
7. Look at what your policy includes. Ask your potential insurance provider if they will cover spare parts, tools, high-valued modifications and paint jobs in the event of damage or theft.
8. Check who can and cannot use your vehicle. Make sure that your classic car insurance provider will allow younger drivers and other family members to use the vehicle.
9. Insure through a financially strong institution. Any insurance company you choose should have an AM Best rating of A- or better, which ensures the financial strength of the company.
10. Always keep your car insured, even if it is under restoration at a shop or in storage and not being driven. In the event of fire or theft, you’ll have to absorb the entire loss if your vehicle isn’t covered.
Hagerty Insurance Agency, Inc. is a leading insurance agency for classic vehicles. It offers insurance for classic cars, motorcycles and motorcycle safety equipment, tractors, automotive tools and spare parts, and “automobilia” Hagerty also offers overseas shipping/touring insurance coverage, commercial coverage and club liability coverage. For information, call 800-922-4050 or visit www.hagerty.com.
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