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We're going to let you in on a little secret that's especially good news if you own a classic/collectible car. The potential for you to acquire dirt-cheap insurance that's also very comprehensive is now greater than ever.

Strange but true. Insuring a classic, antique, or not-often-used exotic like a Ferrari, Porsche, older Corvette, or Dodge Viper is a very reasonable thing to do despite the astronomical value of some of these cars. For example, certain classic 'Vettes from the '50s and '60s are worth well over $100,000 and some Ferraris command seven-figure prices on the open market.

So if a car is worth a million bucks, how can you insure it for so little in relation to its overall value? Simple. Contact a company such as Hagerty Classic Insurance that specializes in writing policies on collectible, classic and antique cars. Incidentally, the company also insures classic wooden boats, which is how Hagerty got its start.

The historical background of Hagerty begins with the company existing as a general agency for 27 years. After that time, the firm realized there was a void in the wooden-boat collector market, which wasn't offering insurance coverage for wooden boats. In 1983, Hagerty Classic Insurance was born and in 1991, the company added classic and collectible cars to its coverage umbrella.

Today, Hagerty insures just about any type of collectible car or truck you can think of, along with those wonderful wooden boats. In general, vehicles built before 1970 are a shoe-in, but as anyone into collectible wheels will tell you, there's plenty of valuable iron built after 1970. Hagerty will cover those vehicles, too. Specific types of insurable machines include antiques, classics (pre- and post-war), show cars, trucks, classic motorcycles, muscle cars, exotics, street rods and customs.

Now that you know what can be insured, let's take a look at how it can be covered. Hagerty, along with most of the companies listed at the end of this story, use agreed value policies. There are three basic types of auto insurance available today: Actual cash value (ACV), stated value and agreed value. ACV coverage is what insures most of the cars you see on the road. These vehicles are insured for purchased or book value and owners usually receive book value or less in the event of a claim.

Stated value insurance is what large and some specialty insurers use to insure collectible cars. It's better than ACV coverage because it allows you to "state" a value for your car that might be higher than its purchased or book value.

But stated value can still depreciate cars because these types of policies only have to pay "up to" the "stated" amount. Agreed value is the type of policy that Hagerty bases all its business on. It guarantees that the policy owner will receive every dime for which the vehicle is insured. Of the three types of polices, only agreed value ensures you will get all your money back in the event of a total loss.

There are several other benefits of collector-vehicle type insurance that you should keep in mind when shopping for insurance with Hagerty or any other company. Remember, most collectible cars don't depreciate. In fact, many cars increase in value as time goes by. Standard insurance assumes a vehicle depreciates with age. This isn't the case with collector car insurance. Companies such as Hagerty know that classics appreciate as the years roll by.

Hagerty also offers this very appealing aspect with its policies: There's only one liability charge per collection, not per car. So if you own more than one car, you pay one lump sum for the whole collection. Some Hagerty customers own hundreds of vehicles. Hagerty's reasoning is that a customer can only drive one vehicle at a time, so the single liability charge is logical.

Another good thing is that the owner can use a repair shop they know and trust. There's no need for multiple estimates. Hagerty will work with a customer's favorite repair shop, because they realize that many collectible cars need specialized attention and facilities to make sure the repair is done right.

One of the key reasons that Hagerty can offer low rates on collectible vehicles that are not driven daily is because they require the insured to have another vehicle that serves as a daily driver. They won't write you a policy on a collectible vehicle until you prove you have another vehicle that also has its own separate policy and it's your primary driver.

Once that's addressed, the low rates of a Hagerty (or any other specialized insurance company) policy are impressive. While some companies have mileage limits on a collectible vehicle, Hagerty doesn't have absolute restrictions on how often a vehicle can be driven. In other words, you can't drive the car every single day, but you could take the vehicle on such events as weekend road trips with a club or to a show.

Basically, Hagerty says this about how a car can be used: "We recognize that owners of collectible vehicles like to drive them, as well as collect and show them. Unlike some specialty insurance programs, we are flexible about how you use your collector car. As long as you have regular daily transportation for work and errands, and that car is insured, you are free to drive your collector car in a manner consistent with owning a valuable car." Hagerty even insures vintage race cars for transport to and from the track and while they're sitting in the pits. Once the car enters a racetrack for competitive track time or even open-track practice, though, the vehicle is not insured.

The final benefit of collector car insurance that we know you're itching to hear about is the rates. As we mentioned at the outset, they're low - real low in some instances. In fact, Hagerty told us that a stock collectible car (say, for example, a '67 Camaro) that's worth about $10,000 could be insured for as little as $100 per year.

While we don't have hard proof of that, we do happen to have an Edmunds.com staffer who actually has a Hagerty policy on two classic Fords.

The pictured vehicles covered with that Hagerty policy are a '66 Mustang fastback and a '64 Fairlane 500 two-door sedan. Total price for a full-year of coverage, including liability, theft and collision, on both cars, is a paltry $419.

The breakdown is as follows. Liability at $100,000 per accident is $29. Uninsured motorist at $35,000 per accident is $6. Medical payments at $5,000 per accident are $8.

The agreed value on the Fairlane is $12,500 and there is no deductible for either car. The premium on the Fairlane for collision is $87 and for events other than collision, it's $88, for a total of $175. For the Mustang on an agreed value of $15,000, the premiums for both collision and events other than collision are $105, for a total of $210. With a total of $428, there is a California mandatory credit listed on the policy for $9, making the total $419. We'd say that's a bargain in anyone's book.

Listed below are several FAQs that Hagerty gets on a regular basis. We also provided a list of additional companies that insure collectible vehicles.


Frequently Asked Questions

1. Are most collector cars insured by collector car insurance programs?
No. Specialty programs today insure less than half of the collector vehicles on the road. Although collector car insurance has been available for nearly 50 years, most owners of collectibles, specialty cars and street rods are still insuring them through a standard insurance company despite the higher cost and often more restrictive policies.

2. Do specialty insurance programs cost less than standard insurance?
Yes. Premiums at standard insurance companies can cost up to 300-percent more than a specialty program. Although standard companies provide adequate coverage for the "daily driver," they rarely offer the added benefits associated with collector car programs.

3. How different are insurance programs for collector vehicles?
Levels of service, rates and types of coverage and claims handling all vary from program to program. Anyone insuring a collectible should research all programs before making a decision. Varying costs should be considered, of course, but shouldn't be the sole determining factor. Remember, you are buying a service, so look for quality customer service, excellent claims handling, a knowledgeable staff who know and understand collectible vehicles and overall stability of the program.

4. Aren't there different kinds of insurance coverage?
There are three types of auto insurance offered today: actual cash value (ACV), stated value and agreed value. All three are explained in the text above.

5. Are vehicles of all ages considered by specialty insurance programs?
As noted in the text above, in addition to autos 25 years and older, some specialty insurance programs now consider newer vehicles such as exotic and sports cars like Ferraris, Porsches, Corvettes and Vipers. It's best to inquire on a per-vehicle basis.

6. Do collector car policies impose mileage restrictions?
Many specialty programs limit owners to driving collectible or classic vehicles or street rods to only 2,500 miles per year. Companies such as Hagerty offer flexible usage guidelines and encourage collectors, especially those who are true hobbyists, to drive and enjoy their vehicles. Hagerty, however, does require that the collector or hobbyist own a daily driver that is used and separately insured for everyday driving.

7. Must I drive my collectible only in parades or shows? What about a Sunday cruise?
Enthusiasts like to share their collectible car or truck with others. This could be during a Sunday drive or displaying the vehicle in parades and shows. Some programs require the vehicle be in the owner's presence at all times when not in the garage. Collectors should consider these types of restrictions and find a policy with flexible usage guidelines that best suit their overall needs.

8. How do I value my vehicle?
There are many factors considered when valuing a vehicle. The first thing is whether the car is a stock original vehicle. If so, there are many resource guides and pricing books that provide value guidelines based upon the overall condition of the vehicle. But, because every modified car is different, valuation is more difficult. The best way to value a modified vehicle or street rod is to keep detailed lists of all restoration work and any added aftermarket and performance parts, receipts for all parts and labor and any documentation describing work done on the vehicle. Appraisals help, but they're not always necessary.

9. Is it important to consider insurance before purchasing a collectible?
Definitely. Insurance is often a mandatory requirement of owning a vehicle, as well as a necessity for protecting your investment. Therefore, you do want to consider your potential insurance costs. Interested hobbyists and collectors can now afford to own, insure and enjoy their classics because specialty insurance programs offer lower rates than standard insurance companies. For collectors with several vehicles, some programs, including Hagerty's, offer a single liability charge rather than a charge per vehicle.


Insurance Companies offering Collectible Vehicle Policies

Acorida Insurance Services, (800) 648-1600

American Collectors Insurance, (800) 360-2277

Condon & Skelly, (800) 257-9496

The Gorsline Company, (800) 805-0034

Grundy Worldwide, (800) 338-4005

Hagerty Classic Insurance, (800) 922-4050

Heacock Insurance Group, (800) 678-5173

J.C. Taylor Antique Auto Insurance, (800) 345-8290

K&K Insurance, (800) 548-0858

Leland West Insurance Brokers, (800) 237-4722

Parish Motorsports Insurance, (800) 274-1804

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If you carry collision coverage, UMPD does not apply. UM collision deductible waiver would be the coverage that would be applicable.

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"Property damage" shall be excess over any other collectible insurance provided under
(1) Part D of this policy (edit: the "coverage for damage to your auto" section)
(2) Any other policy providing coverage for the "property damage"

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