Insurance on luxury cars

Whether it’s the first vintage hot-rod or roadster you saw as a young kid, or a sleek sports car fit for the track, every car enthusiast dreams of the handful of cars they’ll keep in their garage. Some dream of luxury cars costing hundreds of thousands of dollars, while others long for a restored version of, say, their father’s station wagon, which will only add up to a few thousand on the used market. In either case, your best bet is to keep your cost of ownership low is to insure your cars for as little as possible. Fortunately, there are several options for owners who want to keep their valuables insured while not splurging money on their investment.

Insuring Classic & Collector Cars

The LA Times notes that “traditional insurance is based on the notion that a car’s value will decrease over time, ” whereas classic car insurance assumes your value will appreciate over time. Most classic car policies assume your collector’s item is garaged and driven sparingly, so insurers calculate a much lower risk of accident, and subsequently offer lower rates and premiums than traditional auto policies.

Collector policies offer a handful of advantages over regular policies. By choosing a specialty insurance company, you’ll be working with an insurer who knows your vehicle’s worth and who also understand how to assess its value. Additionally, collector policies offer specialized coverage plans, so you won’t be paying more on top of what you need.

Stated value and agreed value policies are a great way to guarantee your classic car will be covered. American Collectors Insurance offers agreed value policies, and will work with customers to establish a car’s value based on photographs and specifications. An expert appraisal is recommended, but not always necessary.