Protecting Your Collectible Auto

Auto enthusiasts take their cars very seriously - as they should. You’ve put plenty of time, effort and a lot of money into your collectible auto. To some it may seem like a hobby, but to you, it’s more than that, it is your passion. As a result of this passion and interest, it is important that you have the right insurance policy. Although, collector car insurance has been available for five decades, most owners of collectibles, specialty cars and street rods are still insuring them through a standard insurance company despite the higher cost and often more restrictive policies. You want to enjoy driving your classic vehicle and the last thing you should have to worry about is whether or not you have the right insurance coverage. Consider these tips as you go about the process of finding your classic car insurance.

Standard insurance annual premiums can cost up to 500% more than those offered by a specialty program that Pacific Preferred Insurance Agency can offer. Sure, standard insurance companies can provide adequate coverage for those who drive daily, but they rarely will offer the added benefits associated with a specialty program such as a collector program.

There are three types of automobile insurance offered today: Actual Cash Value (ACV), Stated Value, and Agreed Value. ACV coverage is what insures most everyday cars and pays out a depreciated "book" value in the event of a claim: the older a car is on an ACV policy, the less value it has. Some insurance companies offer Stated Value policies for collectibles. These policies are better than ACV because they allow you to "state" a value for your vehicle greater than its depreciated "book" value. But, be cautious, Stated Value can still depreciate vehicles because the policies generally require the insurance company only to pay "up to" the "stated" amount. Only Agreed Value, sometimes referred to as Guaranteed Value insurance policies is the only kind that will guarantee you will get all of your money back in the event of a total loss. There is no depreciation of a car's value with an Agreed Value policy. This is why at Pacific PreferredInsurance Agency we have an excellent program that offers “Guaranteed Value”, which ensures that you receive every cent of your car’s insured value in the event of a covered total loss.

Although there are several fine specialty programs available in the marketplace, there are differences among them. Levels of service, rates, types of coverage and claims handling all vary from program to program. Anyone insuring a collectible in California should speak to a licensed agent at Pacific Preferred Insurance Agency, where our program is second to none.

The bottom line? Classic car insurance will save you a lot of money. Interested hobbyists and collectors can now afford to own, insure, and enjoy their classics because specialty insurance programs offer lower rates and better benefits than standard insurance companies. Give us a call today at 805.351.3851 and ask us about our special collectible insurance car program.

The Top Factors Affecting Auto Rates In California

Shopping around for the best price for California car insurance can be well worth the effort for most drivers in California. In 2006 the average expenditure in California for auto insurance was $843 and this average has steadily increased since then. In that California car insurance is a legal requirement, doing price comparison between California car insurance companies can save you a lot of money over time.

Have you ever had a conversation with a friend or family member and wondered why their auto rates are so different from yours?  The factors that go into determining the premium for an auto insurance policy are many, and the rates for two drivers can be very different.  If you are wondering how the insurance company arrived at your rate, here are some of the factors that have an impact on your premiums.  To learn more, we recommend that you speak with a licensed agent at Pacific Preferred Insurance Agency.

Your Age And Experience

Your age and the length of time you have been driving are two of the biggest factors in determining insurance rates.  Young drivers who are less experienced are statistically more likely to have accidents, and their accidents are more likely to be serious.  Thus insurance companies rate for age and experience based on the risk they are taking by insuring you.  You might hear that word a lot if you look into how insurance rates are determined: risk.  The higher the risk a driver represents to an insurance company, the more they will be charged in California.

The Type Of Vehicle

The type of car you drive has a big impact on your rates as well.  Some cars are more expensive to repair, more likely to be stolen, or considered more dangerous to drive due to high speeds (sports cars, for example).  All of these things can lead to an increase in the premiums to insure that car.  Older, less valuable cars tend to be a lot cheaper to insure than newer, more expensive cars, because it will cost the insurance company more to repair or replace a newer car.

Where You Live

The zip code where you park your car at night is another determining factor in your premiums.  If there is a lot of theft in your neighborhood, this might cause an increase in insurance rates, as the insurance company is taking on a higher risk of having to pay out on a theft claim.

How Much And How Far You Drive

If you have a long daily commute, you spend more time in your car than someone who works from home, which means you are more likely to be in an accident.  The more you drive your car, the higher your premiums are likely to be.  Again, you are at a higher risk of having a claim due to more frequent use of your car, resulting in a higher premium.

These are just a few of the many factors that go into determining what an individual pays for their auto insurance.  Insurance companies rate each driver and vehicle based on the level of risk they represent-the likelihood that they will have a claim.  The lower your risk level, the better your premiums will become.

Pacific Preferred Insurance agents can help keep the process simple and will provide you with competitive insurance quotes.  We pass the savings along to you.  That's what we call "preferred savings made simple".  Give us a call today at 805.351.3851 and find out why our clients in Santa Barbara, Ventura, Oxnard, Thousand Oaks, and throughout California prefer us as their agent of choice.