Greg Petrolati wrote:
> I have misgivings about "Classic Car" insurance... As with
> anything you must read all the FINE PRINT. I find most classic
> car insurances are rather restrictive in what they allow (kind
> of like what some states require for antique auto licenses).
> I recommend insuring your car with a stated value policy (along
> with the ususal liability insurance). Find someone reputable to
> put, in writing, a replacement value on your car, and insure it
> for that amount.
We've been down this road before, and Greg is right - you need to read the
policy carefully, starting with any mileage and coverage limitations. Most
"classic car" companies have a miles/year limitation (typically 1500-2500),
subject to negotiation, waivers, etc. Some policies cover the car only while
in a locked garage or while going to and from a recognized automotive
"event", others are more liberal but almost none allow daily use as in
driving to work, the grocery store, yada, yada.
You also need to know the difference between "stated value" and "agreed
value" coverage. The former allows you to state a value for the car and pay
premiums on that value, but the insurance company may pay only the "market
value" of the car in the event of a theft or other total loss. An "agreed
value" policy is typically based upon an appraisal and determines the amount
you're entitled to in the event of a total loss.
You might also want to consider how convenient it will be to process a claim
with a specialty insurer who may not even have an office in your state.
Jim Hill
Madison WI
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