10 Things You Must Know About Collector Car Insurance

Collector Car Insurance in the United States - A Booming Market

With over 42,000 collector car sales in the United States in 2022, the collector car insurance market is booming. This niche market is driven by a growing number of antique and classic car enthusiasts who are willing to pay top dollar for a piece of automotive history.

What is Collector Car Insurance?

Collector car insurance is a specialized type of coverage designed to protect antique, classic, and exotic cars that are considered to be collector vehicles. These vehicles are typically at least 25 years of age and have a high value.

Key Features of Collector Car Insurance

• Agreed Value: The insured value of the car is agreed upon between the insurance company and the car owner. This ensures that the car owner will receive the full value of the car in the event of a claim.
• Limited Mileage: Collector cars are typically not driven on a daily basis. Collector car insurance policies typically have limited mileage limits to reflect this.
• Special Coverage: Collector car insurance policies can be customized to include coverage for things like spare parts, car shows, and even mechanical breakdowns.

Benefits of Collector Car Insurance

• Peace of Mind: Collector car insurance provides peace of mind knowing that your valuable vehicle is protected.
• Financial Protection: In the event of a claim, collector car insurance can help you recover the full value of your car.
• Customization: Collector car insurance policies can be customized to meet your specific needs.

How to Choose a Collector Car Insurance Policy

Choosing the right collector car insurance policy is important. Here are a few factors to consider:

• The Value of Your Car: Make sure the agreed value of the policy is equal to or greater than the value of your car.
• Your Driving Habits: Choose a policy with a mileage limit that is appropriate for your driving habits.
• Your Coverage Needs: Consider what type of coverage you need, such as spare parts coverage, car show coverage, and mechanical breakdown coverage.

5 Common Mistakes to Avoid When Choosing Collector Car Insurance

• Underinsuring Your Car: Make sure the agreed value of the policy is equal to or greater than the value of your car.
• Choosing a Policy with a High Deductible: A high deductible can reduce your premiums, but it can also mean paying more out of pocket in the event of a claim.
• Not Customizing Your Policy: Collector car insurance policies can be customized to meet your specific needs. Be sure to choose a policy that provides the coverage you need.
• Not Reading the Fine Print: Be sure to read the policy carefully before you sign up. This will help you avoid any surprises down the road.
• Not Insuring Your Car for the Right Amount: Make sure the policy limits are high enough to cover the full value of your car.

FAQs About Collector Car Insurance

• What is the best way to determine the value of my collector car?

There are a number of ways to determine the value of your collector car. You can use online resources, such as NADA Guides or Hagerty, or you can contact a qualified appraiser.

• How much does collector car insurance cost?

The cost of collector car insurance varies depending on a number of factors, such as the value of your car, your driving habits, and your coverage needs. However, you can expect to pay more for collector car insurance than you would for regular car insurance.

• What is the difference between collector car insurance and regular car insurance?

Collector car insurance is designed specifically for antique, classic, and exotic cars. It provides coverage that is not typically available on regular car insurance policies, such as agreed value coverage, limited mileage limits, and special coverage for things like spare parts, car shows, and mechanical breakdowns.

• Do I need collector car insurance if I only drive my car on special occasions?

Yes, you should still consider collector car insurance even if you only drive your car on special occasions. Collector car insurance provides peace of mind knowing that your valuable vehicle is protected.

• What is a "club car" policy?

A "club car" policy is a type of collector car insurance policy that is designed for members of car clubs. This type of policy typically provides coverage for a variety of activities, such as car shows, rallies, and tours.

• What is a "guaranteed value" policy?

A "guaranteed value" policy is a type of collector car insurance policy that guarantees to pay the insured value of the car in the event of a claim, regardless of the car's actual value at the time of the claim.

• What is a "stated value" policy?

A "stated value" policy is a type of collector car insurance policy that sets the insured value of the car at an agreed-upon amount. In the event of a claim, the insurance company will pay up to the stated value of the car, minus the deductible.