Collector Car Coverage: Is It Right For You?
With spring now upon us, many people are dusting off their summer vehicles and preparing them for summer cruising. Antique/collector cars and trucks are a popular summer vehicle for Sunday driving, but how are you insuring these automobiles? Most people just add them to their MA Auto policies like any other vehicle, but is this the best way to cover your cherished antique car?
The answer is no. MA Auto policies are not designed for the antique auto market and can often cause problems when there is an accident. If you insure your antique on a MA Auto policy and total it in an accident, there is a good chance you will not be compensated for the full value of the vehicle. Some companies offer an antique auto endorsement on the MA Auto policy, but in most cases the policy will pay out on the actual cash value or the limit chosen by you, whichever is less. So if you total your antique automobile and the limit you selected for the endorsement is $35,000 but the actual cash value of the vehicle is $15,000, you will get $15,000. This does not invoke much confidence in the MA Auto policy’s coverage of these specialty vehicles.
The proper way to insure an antique car or truck is to purchase an antique car policy. These policies are designed specifically for antique cars and trucks. Instead of getting actual cash value for the vehicle, which figures in depreciation based on the age and mileage of the vehicle, these policies work on an agreed value for the vehicle. These insurance companies are well versed in antique vehicles and how they are valued. So if there is a total loss to your cherry red 1969 Corvette, you will get what the vehicle is actually worth on the antique auto market as opposed to the depreciated value for a vehicle that is 42 years old.
Antique auto policies are extremely affordable, the average price being approximately $300 for a year’s worth of coverage. There are some strings attached to these policies though. First off, most companies require that you keep your antique in a locked garage when not in use. Also, this vehicle cannot be your “drive every day” vehicle. You must have a primary vehicle that you use for everyday driving, and your antique auto is used for Sunday drives, car shows, or other special events. Typically, you cannot drive the vehicle more than 3,000 miles per year. If you drive your antique vehicle to work every day, or find that you cruise around after work in your antique car almost every day, then this policy may not be for you. Call Farrell Backlund at 508-824-8666 for more information on antique auto policies and if this type of policy is right for you.