Do you own a collector or antique automobile? A collector car is considered a car over 10 years old and maintained or restored by a hobbyist because of rarity or historic interest.  Antiques are over 25 years old.

After what seems like a lifetime of saving and searching, you have finally found the antique or collector car from your childhood dreams.  Hours spent daydreaming, cruising down the highway and open roads. One thing you probably have not thought of is how the insurance is figured for an antique or collector car.

The car may be insured on your personal auto policy with the other car(s) you driver regularly.  If you don’t have the correct coverage, you may be disappointed if you have damage to your car.

A regular auto policy will pay no more than the Actual Cash Value or ACV of the car.  If repairs to your car cost more than its value, you’ll receive no more than the ACV.  This means you may have to foot the cost for the repairs but additionally, if you decide to keep the car, you might be stuck with a salvage titled car.

If your agent offers a “stated amount” coverage, you may be no better off than the ACV option.  Stated Amount refers to the value “stated” by you that the car is worth.  You may even pay more for this coverage.  Unfortunately, there is no guarantee you’ll receive that amount and you absolutely won’t receive any more than the stated amount.   It essentially indicates the insurance company will pay the least of either the repair cost, the ACV or the State Amount.

The best option to ensure proper valuation in the event of a claim is to insure for Agreed Value.  This option extends coverage in the event of a total loss at the greater of either the Agreed Value or the ACV.

Getting the coverage you want can be tricky.  Some companies only offer one of the above options.  That’s why it’s important your agent represents companies that provide a variety of options including companies that specialize in insuring antique autos.