So, you finally bought that classic car you’ve been eyeing for years. Maybe it’s a Gull-wing Mercedes, or a ’63 Corvette Sting Ray or a ’66 Alfa Romeo Spider Duetto. No matter. It’s your baby now, and you intend to pamper it. But you also want to insure it, and that has you thinking. You’ve been hesitating to buy insurance because you think insuring a car that valuable is going to be expensive.
That’s where you’d be wrong. Insuring a classic car is typically less expensive than insuring a modern car. Why? Because collectible cars are often pampered; not to mention, they aren’t equipped with as much technology.
Does that mean that all classic car owners are benefitting from inexpensive policies? In actuality, about 50 percent of them are paying too much. Instead of doing their research or working with an experienced independent insurance agent, they’re simply covering their classic car with a standard policy. That means not only are they paying too much, but they’re probably not getting adequate coverage as well.
The reason is simple: the minute you drive a traditional car off the lot, it depreciates in value, typically by as much as 11 percent. That means that a car you buy for $25,000 instantly loses $2,750 of its purchase value. Not so with classic cars, which usually appreciate in value over time. That means, if you buy a standard policy for your classic Mustang and it’s totaled, you get the depreciated value, not what your car is actually worth.
An experienced insurance agent will understand the classic/antique car market. He knows that your classic car appreciates in value because it’s going to be pampered and probably driven a good deal less than a modern car. He’ll be able to get you the policy you need so that, if your car is in an accident or totaled, you’ll get a value based on factors like what similar cars sold for at auctions and collector’s sales, not on depreciated value.
How much could you save on your classic car policy? Well, that’s going to be based on a number of factors, including what kind of driving record you have, how frequently you plan to drive your car and who drafts the policy. But in general, you could save 20 percent or more as compared with a standard auto insurance policy.
Whether you already own a classic car or are considering buying one, it’s important to work with an experienced insurance agent who understands the nuances of the insurance market and can get you the best deal and the best coverage. Independent insurance agents are professionals who take the time to do their homework, all aimed at meeting your insurance needs. It’s always in your best interest to take advantage of their expertise.
Protect your pride and joy. Call Akin & Associates Insurance Group at 256-355-8500 for more information on Decatur antique car insurance.