Insurance Coverage for Our Family

Tips for Insuring Your First Classic Car

15 October 2018

Christian Byrd

If you recently purchased your first classic car for what you hope will someday become a larger collection, then it is vital you obtain the right auto insurance to protect your investment. Though you may be familiar with insuring other types of vehicles, classic cars require some special considerations modern cars don't have to contend with. Here are some tips to ensure you obtain the best classic car insurance policy to protect your investment at the best possible price:

Tip: Ensure the Insurance Policy Gives You a Guaranteed Price If Your Classic Car Is Totaled in an Accident

You will want to ensure that the policy you pick will properly reimburse you for the current market value of the vehicle if it is totaled in an accident. 

Typically, an auto insurance policy will pay you the "actual cash value" of your vehicle at the time it is totaled. The actual cash value is the Kelly Blue Book Value of the car, which does not take into account specialty paint jobs, hard to locate parts, and many other aspects of classic cars.

Alternatively, a good policy for a classic vehicle covers it based upon an "agreed value" between you and the insurance company. For example, if you value your new car at $50,000 while the Blue Book value is much lower, a policy with an agreed value will cover your car for the entire $50,000 and that is what it will pay you if your car is totaled in an unfortunate accident. 

Tip: Make Sure Your Policy Will Guarantee Flatbed Towing in an Emergency Situation

Since the safest way to tow a classic car is to put it up on a flatbed rather than towing it behind a tow truck, your policy needs to offer a guarantee of towing on a flatbed truck if you call for roadside assistance. This is vital for preventing secondary damage from towing after a breakdown.

Tip: Consider Obtaining a Policy from an Insurance Company Specializing in Class Car Policies

While you can always purchase an insurance policy from your regular auto insurance carrier for your new classic vehicle, you should consider obtaining one from a carrier who specializes in this type of policy. Often, a classic car can be insured for less cost when purchasing a policy from a specialty insurer because they have a better understanding that these types of cars pose a lessened risk of a claim.

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