One of the most collectible items in the U.S. is classic cars. Most classic cars are extremely valuable and are classified as collector cars. These vehicles are rarely used for day-to-day driving; after all, collectors typically buy them to display and show, not to actually drive. With this in mind, it’s important to realize that a regular NJ Auto Insurance policy is not the type of coverage you should purchase if you are the owner of one of these vehicles.
As far as what qualifies as a collector or classic car, it will vary depending on the insurance agency, so be sure to check with your producer first to see if your car falls under the right guidelines. The collector car market has actually been broadening in recent years as there have been more and more reasons for certain vehicles to be collected.
So what’s the difference between a standard auto insurance policy and collectors car insurance? First of all, a standard insurance policy is going to value your vehicle on the actual cash value, and the value of your car is reduced to reflect depreciation, while you can get greater coverage for a collector vehicle for potentially a lower premium, providing that you are not planning on driving the vehicle much. In fact with a collector car policy, your insurance agent will want to know that you have an alternate vehicle for day-to-day driving.
Collectors car insurance also differs from regular auto insurance in that you will typically be required to protect your car from the elements, especially if you live in a region that experiences harsh weather. You will usually need to store your collector vehicle in a fully enclosed garage.
In addition to the difference in value and storage, there will also be strict mileage limits with a collectors car insurance policy. As mentioned earlier, you should not plan on driving the vehicle much; other than pleasure drives every now and then or transporting the vehicle to an auto show. A collector car may not be used every day and may not be used for commercial purposes, in order to retain coverage.
At Tri-State Insurance Agency, we understand the risks you face if you own a collector vehicle. We offer comprehensive Collectors Car Insurance in addition to NJ Auto Insurance Policies for your day-to-day automobile. To learn more about our products and services, please contact us today at (888) 990-0526.