Classic cars are the best of both worlds. Reliving history and driving a car that catches the eye of countless onlookers Is an exciting feeling for many. But the way you insure your classic car can make or break that experience. Unlike most insurance companies, Hagerty® specializes in classic car insurance to provide customers with worry-free coverage. Foreign Affairs Motorsport is here to help you get the best coverage with Hagerty® Collector Car Insurance.
Classic Car Insurance
Classic car insurance differs quite a bit from normal car insurance. With conventional insurance, your car is typically only covered up to its present cash value. This is equal to its cost minus depreciation. Let’s say you got in an accident today (2019) with a Toyota Corolla you purchased in 2015 (worth $24,000 at the point of sale), your insurance would only reimburse you roughly $11,760.
In contrast to regular auto insurance, classic auto insurance works under an agreed or “guaranteed” upon cash value. This value is generated by a strict set of car valuation guidelines. These guidelines are heavily reviewed by Hagerty®. In a step-by-step process, representatives at Hagerty® review valuation guides such as the Old Cars Reports Price Guide and conduct a professional appraisal. If needed, further research is conducted by an underwriter with additional forms of documentation.
Hagerty® Eliminates Depreciation
Unlike typical cars, collectible cars by nature are supposed to increase in value. If you care for your car and service it according to guidelines, the value of your vehicle should not depreciate. If you own a collectible car with a guaranteed value of $65,000, Hagerty® will provide you the full $65,000 if you happen to total your vehicle in an accident.
Classic Car Insurance Coverage
There are some similarities in classic car insurance coverage compared with normal car insurance. For instance, terms typically last around 12 months and include coverage for medical expenses, liability, collision, and uninsured drivers. Liability coverage is mandated by law extend to classic cars along with regular vehicles.
Collectible car insurance differs greatly from regular car insurance in the optional coverage that it provides. Examples of optional coverage include:
Medical Reimbursement for Auto Shows
This applies to an injury at a showcase event or exhibit featuring the car. This is similar to medical coverage on a homeowner’s policy. If an attendee is injured within the space featuring your car, this optional coverage would protect against any liabilities.
No Required Attendance
This coverage extends to auto shows that you do not attend. For example, if your vehicle is in the custody of someone else at an event when an accident occurs, you are still guaranteed protection against any liability.
You will be reimbursed for food, hotel, and any rental costs if your vehicle stops working.
Spare Parts Coverage
If specific parts are lost or stolen, your coverage will have them replaced at the agreed price.
Collectible car insurance requires that your classic car is not used as your primary driving vehicle. There are also strict mileage rules that you must follow in order to stay qualified for your insurance. The maximum annual mileage limit varies by states, but the number is typically capped at 7,500 miles per year. Policyholders are limited to only using their vehicles for “entertainment.” This refers to participating in exhibitions, parades, and shows. Some insurers may refuse to cover a claim if you drive your collectible to school, work, or other typical destinations.
Other Common Stipulations For Collectible Car Insurance
Insurers typically will not provide coverage unless you fall under specific categories. Insurers want to make sure you have a good driving record and that you are of a certain age before you can qualify. Typical classic car insurance guidelines include:
- You are at least 25 years of age.
- You have five to ten years of driving experience.
- You own and use another vehicle as your primary driving vehicle.
- You agree to not race your vehicle or drive recklessly.
- You have had no at-fault accidents within a certain time frame.
Peace of mind is the best way to ensure that you make the most out of your classic car. Speak with one of our customer service agents today at Foreign Affairs Motorsport for more information on the options Hagerty® provides for collectible cars.