KNOW

Not everyone knows or understands the difference between Collector Car insurance vs regular insurance. And, that it can save you money! To learn all the in’s and out’s read on.

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 Collectors 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.

Agreed Value vs Actual Cash Value Claim Settlement: The settlement value on a total loss claim is established in the policy. A collector car policy generally uses Agreed Value provision (where you and the insurance company agree on the collector car value before the policy starts). A regular auto policy generally uses Actual Cash Value provision, where the total loss settlement value is established after the loss occurs. Agreed value provides the additional peace of mind of not having to be unpleasantly surprised at the value your claim adjuster calculates on your classic car.

Vehicle Eligibility: When identifying a collectible automobile, classic car insurance companies typically requires 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. Many insurers do not insure vehicles older than 25 years old on a regular auto policy.

Restoration Improvements : Many collector car owners have made substantial investments to personalize, preserve, restore, and improve their car so that it is different (and more drivable) than when it left the factory. In general, unless vehicle upgrades were previously disclosed and endorsed onto a regular auto policy, most regular auto insurers limit their claim repair scope and the value of their settlement offer for “total loss claims” based on the original equipment that was installed on the vehicle. You may be surprised at the settlement offer you receive on a nicely restored classic car after a total loss claim. Improvements include but are not limited to:

• Drivability improvements: upgraded suspension, installation of power steering.

• Performance improvements: upgraded engine, transmission upgrade.

• Safety Features: upgraded disc brakes, LED lighting upgrades.

• Comfort improvements: installation of air conditioning, upgraded interior finishes, and/or

• Visual improvements: special non-factory paint colors, additional customizations.