One thing is for sure collectors need a classic car insurance plan to protect their prized possession from vandalism, theft, and other physical damage.
It is impossible to use regular car insurance for a classic car because it won’t favor you, and terms guide the classic car insurance coverage plans offered by insurance companies.
The portions that cover acquired physical damage in daily-driver coverage are paid according to “Actual Cash Value.” Owners of collector automobiles should avoid these sorts of policies since they decrease the value of their cars over time. Over time, collector cars typically gain in value. The only form of physical damage insurance that ensures payment of the full insured value is “Agreed Value.”
At the start of the coverage, you should discuss and decide on the vehicle’s value with your insurance providers. If you own a collector vehicle, you should ensure this is your coverage type. Otherwise, you risk receiving significantly less compensation in the event of a claim.
An insurance company is only obligated to pay up to the policy’s stated amount under a stated value policy, so the policyholder might not receive the entire value of the car in the event of a total loss.
Classic car insurance coverage offers as much as you think your collectible automobile needs. With that much said, you ought to have a picture of the worst-case scenarios in your head and discuss them with the licensed and experienced advisors at Hignojos Insurance Agency. We ensure you get a competitive coverage plan for your Agreed Value daily.
