When insuring something so special as a classic or collector car, a standard auto insurance policy is certainly not your best option. While insurance companies not familiar with older, more expensive cars view them as a risk, brokers who better understand the market offer policies specific to the needs of classic car owners.
These vehicles are generally driven less than automobiles used for daily activities, but they also present a greater loss when involved in an accident, or in the event that they are stolen. Owners of collector cars should seek out an experienced agent that offers classic cars insurance in NJ to get a policy that addresses their personal concerns. Since car insurance is legally required, people owning these cars understand the importance of finding just the right policy for their treasured possessions.
When do you need collision and comprehensive coverage?
Motorist who have an older car that is not a classic car don’t really see a need to carry collision coverage. Since, in most cases, collector cars don’t spend a lot of time on the road, odds are less that they’ll be involved in a serious collision. If found at fault in an accident and the vehicle is deemed a total loss, it’s likely the settlement amount being provided probably won’t be worth paying for additional coverage.
Stated value versus agreed value replacement terms
Generally, a standard auto policy is issued as Actual Cash Value. If a classic car is totaled, the owner can expect to receive only the depreciated value, which is why a classic car worth tens of thousands of dollars or more needs additional coverage. Stated Value and Agreed Value ensure that, should the vehicle experience major damage, the settlement will be more in line with the actual value of the car.
Classic cars, unlike standard vehicles, appreciate in value over time and therefore it behooves you to review your classic car coverage periodically to ensure that you are carrying adequate coverage. Owners of a valuable classic car generally store it indoors in a garage since most insurance companies would prefer not to insure valuable cars that sit out exposed to the elements on a daily basis.
The best advice would be for you to purchase classic car insurance in NJ for collector cars, or antique vehicles that are not driven on a daily basis. Certain policies may have mileage restrictions so make sure these restrictions aren’t going to be an issue before purchasing any policy.