Mountain View Insurance – Classic Car Insurance
To properly insure your classic car you want to consider a “stated value” or “agreed amount” car insurance policy. There are specialty carriers such as Hagerty that offer these policies to classic car owners.
Stated Value Policy
It is important to note that the majority of car insurance policies are “actual cash value” policies. This means that in the case of a total loss the car insurance carrier will pay the insured the actual cash value at the time of the loss. Oftentimes “actual cash value” is referred to as depreciated value. This is a huge consideration for classic cars because the actual cash value of a 57′ Chevy would be minimal.
State value, or agreed value, is an amount that both the insured and the insurance carrier agree upon. In the case of a loss they use that figure to reconcile the damages. This is preferable to a depreciation evaluation usually used in a typical car insurance policy.
Pleasure Use
Classic cars, especially in the Greater Baltimore region, are usually driven for a selective period of the year. Because of this the mileage is usually very low annually.
Specialty car insurance carriers take this into consideration and price the policy accordingly. This is another reason to seek out a specialty insurance carrier. The price is usually much less than a typical policy.