How to Protect your Classic Car

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As anybody who’s dealt with an insurance claim on a classic will tell you, it’s an important question. The fact is, the every- day insurance policy that’s perfect for your daily-use cars just doesn’t cut it when it comes to classics. Even if your classic stays in your garage, undriven, it probably won’t be covered by your homeowner’s policy for a fi e, theft or accident.

So what’s the difference between specialty and everyday insurance?

Specialty and everyday insurance policies differ greatly when it comes to vehicle value and how you are compensated in the event of a loss. There are three ways auto insurance pays out claims:

         Actual Cash Value

Most everyday insurers offer Actual Cash Value policies. This is what an insurance adjuster says your car is worth, usually based on used car values – not the classic car market. So if your classic’s stolen or declared a total loss after an accident, it’s unlikely you’ll be compensated for its true value.

         Stated Value

Many everyday insurers offer Stated Value policies for classic cars, allowing clients to set their own value. But here’s the problem: the insurer only has to pay up to the Stated Value, and in fact is allowed to pay the lesser of the Stated Value or the Actual Cash Value, less any deductible.

         Agreed Value or Guaranteed Value

Most specialty insurers offer Agreed Value or Guaranteed Value, which means you and the insurance company agree on a value for your car. If there’s a covered total loss, you’ll receive that full value, less any deductibles. Some companies require appraisals at your expense, while others will only in- sure cars for book value – no negotiations. The best compa- nies don’t require appraisals, and rely on their expertise and your opinion to determine an accurate value for your classic.


Defining “classic car”

 Different companies have different vehicle and age requirements, but vehicles are generally considered classics if they maintain or appreciate in value and are of limited production or special interest.

Qualifications for classic car insurance

 Drivers must have a good driving Some companies require drivers to be 25 or older.

  • Vehicles typically need to be securely
  • Vehicle can not be used for back-up or daily Some companies have strict mileage limitations; others are more flexible.

How do you choose a classic car insurance expert?

 As you shop around, here are some things to look for:

  • Agreed or Guaranteed Value coverage – It’s the only way to make sure you get the full value of your
    • Good Reputation – Ask around and read online Find out how companies treat their clients and deal with claims.
    • Financial stability – Choose a company with an M. Best rating of “A-” or better. This means that the company is financially strong and benefits from good management.
      • Lets you choose the repair shop – In event of a claim, you should choose who repairs your
    • Has experience, expertise and passion when it comes to

Hagerty is the global leader in classic car insurance. Our experience, expertise and love for classics makes us the best at what we do, and it’s why – if you love classics, you belong with Hagerty.

Hagerty policies are underwritten by Essentia Insurance Company. All coverage not available in all states. This is only a general description of coverage. All coverage is subject to policy provisions, exclusions and endorsements.

Here at Inabnitt Agency we are agents for Hagerty.  If you have a classic car and need to get it insured or already have it insured and want to know if you have the right coverage please give us a call at 317-422-8072 and we will be happy to help you.