Collector’s Insurance Vs. Traditional Car Insurance: What You Need to Know

April 26, 2016

The differences between classic or antique car insurance and traditional auto policies are distinct, salient, and important. Though they may seem subtle or generalized at first, being familiar with these differences can make or break a collector’s investment in the event of a loss.

Here at American Collector’s Insurance, we are well-versed in the inadequacies of traditional auto policies as they pertain to classic or antique automobile protection. The list below is a compilation of the most important distinctions between the two that you need to know about if you are a classic car collector.

  1. When identifying a collectible automobile, insurance companies use generalities and typically require the vehicle be no less than 15 years old, with some mandating an age of at least 25 years. However, cars are collected for several reasons, whether they are limited editions or specialty vehicles. A collector’s insurance policy takes this, and many other relevant factors into consideration that traditional auto insurance companies do not.
  2. Depreciation greatly impacts the value of a car in the eyes of a traditional car insurance company. Consequently, compensation for lost or damaged vehicles is usually inadequate. However, this is not so with collector’s policies, because these specialized policies reflect the real value of your car, which is determined by you and the collector’s insurance company.
  3. It is possible to make sure your collectible or antique automobile stays protected by simply proving that you have a separate car you use, demonstrating that it is properly protected, and limiting yourself to a predetermined number of annual miles you put on it. You probably don’t drive your collector car daily, so you probably don’t put many miles on it, and you most likely keep it well protected. Your inherent sense of responsibility and regular due diligence is recognized by collector’s insurance policies, so there shouldn’t be any extra work on your end to make sure you’re keeping up with the stipulations of a classic or antique car insurance policy.

If you own collectible or antique automobiles, you need to have them properly protected. Give us a call today or browse some of the other pages on our website to learn more about what our policy options can do to protect your investment.