3 Possible Gaps In Your Collector Car Insurance

I have collector car insurance already, so I’m fine, right?
So you’re heading out on your next classic car rally. Maybe you’ve added an extra coat of wax to your baby, changed the oil and checked the spark plug wires. You even checked to make sure your insurance was paid up. You are ready. Or are you?

Almost every one of you has made sure you’ve got insurance for your collector car. But it might not be enough.

If you already have specialty car insurance on your beautiful vintage car, the next step is to make sure you don’t have one of the three most common gaps in coverage. So here they are:

1. Mileage or Use Restrictions
Not all classic and collector car policies are created equal. There’s a reason for this, and it’s not all bad. Collectors all have unique and individual lifestyles, and because you all have different things you do with your “babies,” you all need different kinds of coverage. And you are usually willing to be specific with your insurance company about exactly what you need coverage for- and what you don’t. You don’t want to pay for coverage you don’t need, right?

But what about when your usage needs change? Do you remember to call your agent?

If you have’t looked at your policy in a while- maybe it’s been years- you should. And it doesn’t hurt to have someone who is comfortable with collector car insurance take a look at it with you. Specialty policies can be confusing. Don’t review your policy alone. Call me.

Let’s just mention a few of the things we can check:

    • Are you covered for the type of event you’ll be attending?
    • Is that non-timed “lap around the racetrack” covered?
    • Will your next event put you over the annual mileage limit? What then?
    • Does your car need to be garaged overnight while on a multi-day event?
    • Are you covered out of the country? Have you checked for sure?

2. Inadequate UM/UIM coverage
You are driving on a Sunday afternoon. The skies are clear and the road is smooth. Suddenly, a clown in a sedan who isn’t paying attention rolls through a stop sign. You are paying attention- you see him. But he still clips the front panel of your newly restored classic car. It’s not a horrible crash, but the cost to repair it is still pretty high.

Then you find out he is underinsured (or worse, uninsured).

Do you know how the claim will be handled? Does your “regular” policy step in and cover the loss? Or is it your collector car insurance policy that’s called on to get things paid for? And if so- is it enough to cover the claim? You know how expensive it is to repair a vintage car.

This is an area that many car collectors overlook. Check it out, and make sure you have this possible gap in coverage protected.

3. The agreed-value isn’t enough to replace your car
“Agreed-value” policies can be your best friends. Many car collectors have them. They help avoid confusion and arguing with the insurance company at claim time.

So maybe you went out and got an appraisal three years ago for your vintage car. You and the insurance company agreed to insure it for that amount. So far, so good.

But that was three years ago.

Do you know what your car is worth today? Do you know how much it would take to repair or replace it? Has it gone up in value? You probably know if it has- but your insurance policy may not reflect that. If it doesn’t, come claim time, you may be in serious trouble. The insurance company could be in a position to “total” your car, write you a check for far less than it is worth today, fix it themselves, and resell it and make a profit. All because you had it underinsured.

The worst feeling in the world is finding out after a claim that your precious collector car was underinsured. Don’t let that happen. Review your policy with me as soon as you can!