Q: Classic Car Insurance
Anyone know of any insurance companies that will insure classic cars?
A: I have what’s called an “agreed value” policy on my 1969 claissic. Get an agreed value policy, NOT a stated value. Stated value is what you “state” the car to be worth. It simply sets a maximum dollar amount that your insurance company is liable for in case of a loss. They will do all they can to keep from paying this amount. With this policy, after an accident, an appraiser will look your car over to establish a dollar amount as to what your car is worth. If you have a policy like this, I would advise you to take many pictures of your car’s exterior, interior, engine bay, and underneath (if restored) and perhaps even an have an independent appraisal done. You would need to show these to the adjuster in the event of a loss. Anyway, the adjuster will undoubtedly try to appraise your car to be less than the “stated value” that you insured it for – and when they settle the claim, that’s what they pay you.
An “agreed value” policy establishes a car’s value BEFORE a loss or a claim is submitted. There’s no appraisal because the isurance company and you have “agreed” on the car’s value. If your car gets totaled, they pay you for what you insured the car to be worth. Drawback – you’re limited to 3000 miles a year with your car, and it must be kept in a locked garage. However, my insurance company informed me that this year they will start offering agreed value policies to people who wish to drive more than 3000 miles – for a slightly higher premium of course. Right now, I pay $125 a year for this policy.
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Content last modified: January 20, 2014 at 7:01 pm