Your everyday car begins going down in value from the time you drive it off the lot. When you’re talking about a collector car, you’ve put much more into the car than your average Joe, making the car worth more than your average insurance policy would pay out should something happen. For any antique and classic car collector, it’s important to calculate an informed estimate of a vehicle’s current value if you’re planning to buy, sell or insure an antique, vintage, collector or classic car.
Although no one price estimator or appraisal tool can accurately tell you how much your vehicle is worth, they can provide a starting point in determining its market value. Using a combination of the price guides and valuation tools, you can estimate your vehicle’s value—however, only a licensed appraiser can offer a truly precise and individualized valuation. Classic car value and antique car values are determined by a multitude of factors both in and out of the owner’s control. A collector car’s value is appraised according to its rarity, condition, restoration quality, and market demand.
By repairing a prominent or in-demand vehicle, taking care of it, seldom using it, and showing it off at automotive shows, value can be gained and improved. However, just like any car, the more often it is driven, the more likely it is to get into an accident. This is where insurance comes in for classic vehicles.
Traditional vs Classic Car Insurance
Auto insurance traditionally protects you from the considerable risk that can be caused when driving, should anything happen to you, your cars, or others. From auto liability insurance to comprehensive and collision coverage, there are various forms of coverage that shield you in different ways.
The level of auto insurance that you have is up to you, but in the event of an incident, most states at least require a minimum limit of liability insurance to keep you safe.
Payouts for repairs or replacement after an incident are typically based on the depreciated, or current market value, of the vehicle. In other words, if you total a five-year-old car, you’re not going to get the same price you paid when it was new. Instead, the insurer calculates the depreciated value so you can theoretically buy the same make, model, and year like nothing happened.
For older cars, there comes a point that the depreciated value is too low to be worth paying traditional insurance premiums. At this point, you’d be paying more money a month for a very small payout.
Classic Car Insurance
Similar to typical auto insurance, collector car insurance is primarily reserved for older cars that have maintained value or have been repaired over time to retain value. Collectible cars tend to look and work as they did from the start, unlike traditional used cars. Some people buy such vehicles for the nostalgia of older eras of automotive design. Others simply buy and restore old vehicles for the investment opportunity or the challenge.
In any case, collectors auto insurance operates like standard auto insurance: in the event of an injury, various forms of coverage shield you, your car, and others.
Collector car insurance comes in two basic forms: classic car and antique car insurance. The main difference between the two is the age of the vehicle. Classic cars tend to be at least twenty years old and of sufficient historical interest. Antique cars are older than classic cars. They represent the bulk of collector vehicles since all vehicles reach the typical age of the antique car classification at some point.
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Is Classic Car Insurance Necessary?
Legally, you are required to carry a certain level of auto liability insurance. If you don’t want or need additional coverage because you never drive the classic car and never take it out of the garage, you may find the monthly premiums to be unnecessary.
The more you use or show an antique vehicle, however, the more you should consider antique car insurance. Things can happen to any vehicle on the road, even if you aren’t driving it, regardless of its age. Collision and comprehensive coverage, for example, can cover your vehicle for accidents, bad weather, and unexpected incidents.
An additional benefit for you of classic car insurance is the premiums are substantially less than standard auto insurance.
Some specialty providers even offer other options like restoration coverage and travel insurance as well.
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PS Here’s a few words from one client that trusts Stromsoe Insurance Agency:
“I called Mike Stromsoe and he priced out my insurance for my company and saved me $1,500.00 so far. For all my needs it has only taken one phone call. SIA has taken care over my car insurance, renters insurance and my business liability. It’s nice to be all in once place.”
Mike Hughes – Surprise, AZ – Client Since 2007
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