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Collector Car Insurance Considerations

June 29, 2021

So many great collector cars out there. Some of our favorites include:

  • 1964 Pontiac GTO
  • 1970 Chevrolet Chevelle SS 454
  • 1970 Plymouth Road Runner Superbird
  • 1967 Chevrolet Camaro Z/28
  • 1949 Oldsmobile Rocket 88
  • 1965 Shelby Mustang GT-350
  • 1968 Chevrolet Corvette L88
  • 1964 Ford Fairlane Thunderbolt

If you are lucky enough to have a dream car of your own, it should not be included on your policy as a daily use vehicle.  Having your vintage vehicle properly insured and valuated is key and may require specialty insurance. When considering a provider, the first thing you should understand about your insurance is what kind of coverage to have on your collector car—actual cash value, stated value, or agreed value.  Here’s the difference.

Actual Cash Value

Most standard auto policies will insure vehicles on an actual cash value (ACV) basis, which is a depreciated value. And we all know cars start depreciating the moment you drive it off the lot. This kind of coverage would leave your car insured at a fraction of its value.

Stated Value

Many insurance companies will offer a loss settlement method called stated value. This amount is “stated” at the onset of your policy and will be shown at a designated limit. The caveat here is that the insurance company can choose to pay you either the Stated Value or the Actual Cash Value, whichever is less.

This may leave a huge gap between what you think the value of the car is and what the insurance company feels is appropriate.

Agreed Value

Agreed value coverage is primarily offered by specialty insurers and is based on the proven value of your car as determined by you and the insurance company according to appraisals, photos, or other relevant documentation.

With this type of coverage, the insurance company will guarantee to pay the agreed-upon value in the event of a covered total loss. If your classic or collector car is maintaining or increasing in value, Agreed Value is the best option to protect your asset if you have an accident.

Now that you know the lingo, here are 3 tips for picking an insurance provider for your collector car.

  1. Claims Process: investigate how happy customers are with the overall claims process of the proposed insurance provider. And, if your classic is all original, you’ll want to be sure the proposed company will pay for the right replacement parts, not the least expensive parts.
  2. Customer Service: when you call, do you get an actual person? Is service fast and friendly? Read reviews and testimonials.
  3. Street Cred: is your insurance company favorably rated?  If a company doesn’t have good financial strength, there is always a chance that the company could go bankrupt and your claim wouldn’t be paid out. A.M. Best, Standard and Poors, and Fitch are three reputable rating providers specializing in the insurance industry. Look up your proposed provider’s rating before making your final decision on who to insure with.

Avery Insurance offers collector and classic car, boat, and motorcycle insurance coverage through Hagerty Insurance, an A.M. Best top-rated company which offers agreed value coverage.  If you have questions about insurance coverage for your pride and joy, please contact one of our knowledgeable agents at Avery Insurance.



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