What types of coverage are included in antique car insurance policies?
Although this isn’t the only insurance option for older vehicles, antique car insurance provides coverages that most auto policies don’t offer. These are in addition to the standard coverages that most auto policies have.
Some of the coverages that are found in standard and antique auto policies include:
- Personal Injury Protection (PIP): Might cover injuries sustained by occupants of the insured car or truck.
- Bodily Injury Liability Coverage: Might cover injuries sustained by individuals outside the insured vehicle.
- Comprehensive Coverage: Might cover damage to the insured vehicle from non-collision events (i.e. not involving another vehicle).
- Collision Coverage: Might cover damages to the insured vehicle resulting from collisions (i.e. accidents involving other vehicles).
- Property Damage Liability Coverage: Might cover damage to other vehicles or property resulting from an accident.
- Underinsured/Uninsured Motorist Coverage: Might cover collisions involving drivers who are either not insured or lack sufficient insurance.
Some of the coverages that are more particular to classic and antique car policies include:
- Agreed (Guaranteed) Value Coverage: May insure a vintage vehicle up to an agreed-upon value that’s determined when purchasing the policy.
- Flexible Usage Allowance: May insure the vehicle not just for driving, but also for use at events such as shows, charity fundraisers, driver meetups, etc.
- Spare Parts Coverage: May insure the replacement of broken parts with authentic ones, even if they’re expensive or difficult to find.
- Collectible Car Roadside Assistance: May guarantee enhanced roadside services, such as flatbed towing.
How do agreed value and stated value car insurance policies differ?
One of the more important coverages that’s specific to many classic car policies is agreed (or guaranteed) value coverage. This is different from the stated value coverage that most standard car insurance policies, and some classic car policies, have.
Agreed value coverage normally insures a vehicle for a sum that’s agreed upon when the insurance policy is purchased. It’s generally guaranteed that the policy will pay up to this amount, even if that’s different from fair market value or fair market value is hard to determine.
Stated value coverage normally insures a vehicle for its fair market value. This is usually determined at the time of a claim, using the sales, auction results and appraisals of like vehicles.
There are several reasons why owners of classic vehicles might want agreed value coverage:
- The cost of rebuilding a vehicle that’s restored or modded can be more than what the vehicle would sell for.
- The investment made in a classic vehicle may be more than what the vehicle is worth, especially if labor is taken into account.
- Accurately determining fair value might be difficult if there aren’t many similar vehicles to use as comps.