Collectible Car Insurance

With spring right around the corner, many of us are getting anxious to start cruising in our collectible cars once again.

Of course before you take that car out on the road, you’ll have to give it the once over in order to see how it fared through the winter and make any necessary repairs to insure care free driving. Speaking of insuring, lets talk about insuring your collectible car.

Some collectible car owners think the easiest way to insure their classic car is to add it to their family auto insurance policy…this could be a very costly mistake. Your average auto insurance agent doesn't have a clue about what your classic car is really worth and will attempt to offer you the lowest possible value if the vehicle is totaled. An insurance agent needs to know enough about the classic car market to help you secure a reasonable limit of insurance, guaranteeing what you'll be paid in the event of a total loss.

Before you go out and look for the best collectible car insurance quote, there are several factors that you have to determine. Will you be driving the car year-round, or is it a vehicle that only is out on warm summer weekends ? Another important consideration is the amount of miles you intend to drive. Some insurance companies will limit your driving miles in order to get special insurance rates. Others will restrict you from driving your collectible car as basic transportation. So decide ahead of time what your planned usage will be. Once you’ve made these determinations, your next step is to have your car appraised by a professional appraiser to determine its true value. You can find a reputable appraiser through the International Automotive Appraisers Association. (http://www.auto-appraisers.com/ )

There are three types of automobile insurance coverage offered for the total loss of your vehicle. Actual Cash Value, Stated Value, and Agreed Value. Actual Cash Value coverage is what insures most everyday cars and pays out a depreciated “book value” in the event of a claim. The older a car is with an Actual Cash Value policy, the less value it has. Some insurance companies offer Stated Value policies for collectibles. These policies are better than Actual Cash Value because they allow you to state a value for your vehicle that is greater than its depreciated "book value." However, Stated Value can still depreciate vehicles because the policies generally require the insurance company only to pay up to the stated amount. Only Agreed Value insurance policies guarantee you will get all of your money back in the event of a total loss. This is the coverage you should choose for your collectible car. Get the Agreed Value in writing, and keep pictures of the car as evidence in case you ever need to file a claim.

You can find reputable insurers for your collectible car through such magazines as:

Hemmings (http://www.hemmings.com/)

Old Cars Weekly (http://www.oldcarsweekly.com/GeneralMenu/)

If you drive more than occasionally, ask for a policy with no mileage limit. If you drive less frequently, ask for a lower-priced policy with a sufficient limit. Find out what restrictions your insurance company places on your policy and be sure to follow them. You'll lessen your risk of rejected claims and keep your classic car covered.

You may also qualify for discounts if you belong to car or travel clubs. Check with your agent to see if your membership in one or more of these organizations entitles you to an additional rate reduction