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duPont REGISTRY's Collector Car Insurance Guide
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Many enthusiasts and collectors aren’t aware there is insurance designed specifically for collector vehicles. This particular type of insurance is quite different than the insurance for daily drivers. This guide has been designed to help you understand the differences between the types of insurance, explain why you should insure your collector vehicle with a specialty insurance policy, and what you should look for in an insurance provider.
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The Difference in Coverage
A very important component of your insurance policy is the type of physical damage (comprehensive and collision) coverage the policy offers. This is also where a significant difference between standard vehicle policies (what you insure your daily driver with) and collector vehicle policies lie.
There are two types of policies most standard vehicle insurance providers offer. The first is called an “Actual Cash Value” or “ACV” policy. This type of policy is undesirable to a collector vehicle owner because it allows the provider to either depreciate the value of your vehicle as time goes on (when in actuality, collector vehicles usually appreciate in value over time) or they will not place a value on the vehicle unless there is a claim. The second is called a “Stated Value” policy. This type of policy is also undesirable for the collector as the insurance provider is only required to pay “up to” the stated amount on the policy. This could mean that in the event of a total loss, the policyholder may not get the full value of the vehicle.
As a collector you should be certain that your vehicle is insured with an “Agreed Value” policy. Otherwise, if you have a claim, you may end up receiving far less than what your vehicle is worth. Agreed Value is the only type of physical damage coverage that guarantees the full-insured value will be paid in the event of a total loss, with no depreciation. The value of the vehicle is agreed upon by you and your insurance provider at the inception of the policy.
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Benefits of Collector Vehicle Policies
Another distinction you’ll notice when you start comparing is the substantial difference in cost. Collector vehicle insurance is typically a fraction of the cost of standard vehicle insurance. Due to the responsible and safe nature of collector vehicle owners and the fact that collector vehicles are used in a different fashion than daily driven vehicles, providers can offer considerably lower rates.
As if the lower premiums weren’t enough, many collector vehicle insurance providers offer additional benefits that standard policies just can’t compete with. Some providers only charge one liability charge regardless of how many vehicles are on the policy. If you have multiple vehicles, this can mean big savings! Some have towing and labor reimbursement programs in place that will let you select the towing service of your choice and send the bill along for payment. A few will even provide automatic 30-day coverage for new additions to your collection. Others offer spare parts coverage for parts you have purchased but have yet to install.
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Qualifications
In order to qualify for specialty vehicle insurance, there are some requirements that you and your vehicle will need to meet. Most companies ask that the vehicle is kept in a garage when it’s not in use. You’ll also need to have other cars in the household to use for general transportation so the insurance provider knows the collector vehicle won’t be used for that purpose. Be aware when you’re researching your options that some companies will impose annual mileage limitations as well as age requirements. Some providers, American Hobbyist Insurance being one of them, that do not have any strict mileage limitations or age requirements in most states. Also be sure that the company will insure the type of vehicle you’re looking to get coverage for. Some companies won’t insure kit cars, replicas, or cobras.
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Determine Your Needs
Collectors’ needs are diverse. While choosing an insurance provider based on the lowest price is tempting, don’t let this be the only factor to influence your decision. Make sure you know what is important to you. Do you have a particular body shop you won’t stray from? Will the provider you’re considering let you choose your own repair shop if you make a claim? Will they allow you to increase the value of your vehicle after the policy is set? How is their customer service from the get-go? Do you get a machine or are you able to speak with a real person? Are they friendly and knowledgeable? This is a good sign as to how you will be treated in the event of a claim.
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Preventing Claims Before They Happen
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Join a car club! A thief may try to sell your stolen vehicle to someone who has similar interest in a car like yours. Club members are often very unified and would keep an eye out for a fellow club members who has lost his or her car.
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Always lock your car, close all windows, and never leave valuables in plain sight. This is an open invitation for thieves!
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To prevent an accident, dedicate a special section of the garage to your collector vehicle and keep lawn tools, paint cans, the kids’ bikes, etc. in another location.
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Never hang anything over or near your collector vehicle. When dry wall deteriorates and screws loosen, it’s only a matter of time before an accident.
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Inspect shelves in the garage on a regular basis to make sure they are still secure. Loose screws or bowing in the middle is a sign that the shelf is straining to support the weight being placed on it.
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Use good judgment when driving your vehicle. Most accidents happen during rush hour and in crowded parking lots. Be extra careful in these situations!
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Steps to Take in the Event of an Auto Accident
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Remain Calm. Call emergency personnel right away if there are any injuries.
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If you smell gas or see fire in or around the vehicle, clear all persons away from the area.
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Never move a seriously injured person unless it poses a threat to his or her life to leave them in a specific area.
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If the accident is minor (no injuries), move all vehicles to a safe location such as the side of the road. Put your hazard lights on and place reflective triangles or flares around the vehicle to alert other motorists of your location.
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Exchange only the following information with the other driver: your name, names of any passengers, witnesses, car insurance information, address, and phone number. For your safety, it is best to exchange this information through a police officer. Request the officer’s business card so you can contact him/her for the police report.
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Give the police officer your account of the accident, with as many details as you can remember. You should share this information with the officer only, not with the other driver(s).
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If you have access to a digital camera or camera phone, it is helpful to take photos of the vehicles at the scene of the accident, showing any damage, regardless of how minor the damage may be.
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As soon as you are able, contact your insurance company to report your claim.
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