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.