by A. Mani and K. Vargas
Welcome to this week’s “Coverage of the Week” blog where we discuss a particular coverage to educate and clarify a particular topic. This week’s topic…Antique Cars Insurance. Your 1958 Corvette Convertible can’t be insured in the same way as your 2010 Corolla. They are different, and therefore there are different coverages and rates. Allow us to tell you all you need to know about Antique Auto Insurance.
Generally for a car to be considered a collector car the vehicle will need to be 25 + years old. Some carriers do make exceptions to their guidelines based upon a cars rarity, uniqueness, collectability and/or historical significance. The details of the vehicle will normally need to be reviewed by the insurance company’s collector car specialist to determine its eligibility.
Collector cars are relatively inexpensive to insure compared to regular auto insurance policies. One reason for this is a collector car is maintained primarily for use in car club activities, exhibitions, parades, functions of public interest, or for private collection and is used infrequently for other purposes such as a joy ride. Generally, these cars are rarely driven and minimal mileage is tacked on annually. If a client has a collector car that is driven on a daily basis to and from work etc., the collector car eligibility would be declined. Some carriers also exclude damage to a collector car caused by a driver under the age of 25 years old.
These vehicles are normally insured on an agreed value basis. Agreed value is agreed upon by the insured and the insurance company before policy issuance. In the event of a covered total loss the insurance company guarantees to pay the value agreed upon. Normally the comprehensive and collision deductibles are “Zero” if this coverage is selected, and full glass coverage is included (varies by company/state). Photos of the car may need to be provided, and a vehicle appraisal could also be required if a client wants a higher agreed value than what the company helps determine.
The collector car policies usually include limited coverage for spare parts, for a direct or accidental physical loss or damage to spare parts you own that are kept as replacement for components normally part of your collector vehicle. Also, newly acquired vehicle coverage is included for up to 30 days normally. So if you purchase a new collector car and forget to tell your agent, you are covered for the first 30 days and some carriers will provide up to $50,000 in coverage for this newly acquired vehicle – but talk to your agent to be sure.
Policyholders are required to have an acceptable driving record as well as at least one regular private passenger vehicle. It’s also important to know that most of the basic auto exclusions such as wear and tear, vehicles used to carry people or property for a fee, racing or track usage, or mechanical breakdown are excluded from this type of policy.