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Guaranteed Value Coverage For Collector Vehicles

Regular-Use Insurance: If you are covering your collector vehicle on a regular-use auto policy, are you sure you are not paying more than you need to? Are you sure you know how much you will be paid in the event of a total loss? Here some points to ponder and some things you might want to ask your current agent or carrier.

A regular-use vehicle policy generally charges rates that assume all the vehicles are driven extensively in all kinds of traffic and weather, that everyone in your household is a potential operator, and that sometimes the vehicles might be unsecured and exposed to theft, vandalism, or adverse weather. While those assumptions might be true for your daily drivers, the reality may be that your collector vehicle is driven only on sunny day pleasure drives or to shows, that there are few drivers, and that it is always garaged.

If your daily driver is a total loss, your carrier might try to offer a settlement based on sales of comparable vehicles in your local area or the "book value" published by a national resource like NADA. Those approaches might not work very well if your collector vehicle is rare and there have not been many sales in your area. If you are offered less than you think is fair, the burden might be on you to find comparable sales nationally or worldwide to use in negotiating a higher offer.

Stated Value Insurance: Not all carriers offer it but a "stated value" endorsement can be added to a regular use policy. The "stated value" is the most that could be paid if your collector vehicle is a total loss. An adjuster might pay the "stated value" or might use the "stated value" as the starting point for depreciation based on miles and condition changes since the "stated value" was assigned.

If you are insuring your collector vehicle on a regular-use policy or on a stated value endorsement, we recommend you contact your current agent or carrier and ask them to tell you in writing how much you will be paid in the event your collector vehicle is a total loss. If your agent or carrier will not put a specific amount in writing, you might want to think about making a change to guaranteed value insurance.

Guaranteed Value: This kind of policy states in writing what you will be paid in the event your collector vehicle is a total loss. The carrier reviews your photos and if your requested value seems to be in line they issue a guaranteed value policy. Your premium will take into account how your vehicle is stored, that it will be driven on a limited basis, who will actually operate it, and how your vehicle will be used. The premium for a guaranteed value policy may be less than what you would pay on a regular use policy and you generally have a choice to have no deductibles.

Classic Family Agency, Inc. is able to offer guaranteed value collector vehicle coverage through a well-known industry leader. We are happy to talk to you about storage, usage, policy coverage, valuations, claims, etc. It costs nothing more for us to be your broker of record with this industry leader. For more information, contact us today!