If you are lucky enough to own a classic car, then you know the care that it takes to maintain it classic features. Part of maintaining a classic car is ensuring that you have sufficient insurance coverage. Insuring a classic car can be confusing as it is different than insuring a standard car. When insuring your classic car, you should understand what is involved with insuring such a unique and valuable vehicle so that you make an informed policy choice.

Although classic car insurance is becoming more widely available, many people still insure their cars through standard insurance companies which can result in higher premiums and a lack of sufficient coverage. Specialty car insurance coverage is determined on a case by case basis. The three types of classic car insurance offered are the Stated Value, Actual Cash Value (ACV), and Agreed Value. ACV coverage pays out a depreciated ‘book’ value if a claim is filed. This means older cars will have less value and therefore less pay out. Stated Value policies allow you to ‘state’ a value for your vehicle greater than its depreciated ‘book’ value. However, Stated Value can still depreciate vehicles because normally the policy will mandate that the insurance provider pays up to the stated amount. Agreed Value insurance policies mandates a complete payout if there is a total loss, As well, with the Agreed Value policy, there is no depreciation of the car’s value.

Classic car insurance has varying levels of service, types of coverage, handling of claims, and they vary among insurance companies. If you are looking for cheap car insurance, it is important to comparison shop. Online comparison is fast and easy way of locating the cheapest auto insurance network. When choosing an insurance provider, make sure the agent understands the details of insuring classic cars. The time you invest in choosing the best classic car insurance coverage that fits your needs and price is well worth the investment as it will give you peace of mind knowing that you are protecting your cool classic car.

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