American Collectors Insurance | Classic Car Insurance (2024)

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• Tennessee Policyholders: December 9, 2023 – February 7, 2024

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  Tennessee policyholders affected by the recent tornadoes can request additional time to make payments or to have a policy reinstated if cancelled due to non-payment during this time. You can reach American Collectors at (800) 360-2277.

• How is classic car insurance different from regular auto insurance?

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  Classic car insurance and regular auto insurance differ significantly in their coverage and approach. Here’s a breakdown of the key distinctions:

  1. Coverage Focus:

  Regular Auto Insurance: This type of insurance typically covers your vehicle on an Actual Cash Value (ACV) basis. It’s designed for newer vehicles that are depreciating in value, vehicles driven regularly, or those that can be readily replaced after an accident.

  In the unfortunate event that a total loss accident occurs, the ACV estimate for the vehicle is determined by a claims adjuster, which factors in vehicle depreciation, excess mileage, vehicle condition, geographic location, and a variety of other factors.

  Note: ACV estimates for regular auto insurance don’t usually account for any additional equipment or improvements that you added/modified or were not on the original vehicle when sold new (e.g., vehicle restoration costs, modifications, safety/performance/comfort upgrades, custom paint, etc.).

  Classic Car Insurance: Collector car insurance is designed for “special” vehicles which are not driven frequently and generally covers claims on Agreed Value basis. This means that, when the insurance policy starts, both the customer and the insurance company agree on a specific value for the vehicle, and the Agreed Value is listed on the policy declarations page, before any potential total loss incident occurs.

  Providing certainty on your classic car’s “total loss value” and offering an enhanced policy provides peace of mind to classic and collector car owners. We strive to ensure that your financial investments in purchasing, restoring, or upgrading the vehicle are adequately protected should a total loss occur.

  2. Additional Policy Benefits from Collector Car Insurance:

  Classic car insurance policies often come with built-in or optional coverages tailored to classic car owners’ needs and preferences. These can include:

  • Towing Coverage: Classic car insurance generally allows selection of flat bed towing to ensure safe transportation for your classic car in case of breakdowns.
  • Repair Shop of Choice: Allows you to select the repair shop for any necessary repairs to your vehicle or allows you to do the work yourself.
  • Emergency Lodging: Covers lodging expenses if you’re stranded during a road trip.
  • Discounted Salvage Buyback: Offers options to buy back your salvage vehicle at a reduced cost, allowing you to keep your special car to rebuild after a total loss accident.

  In summary, classic car insurance is designed to address the unique needs of classic and collector car owners. With Agreed Value coverage, additional benefits, and a focus on preserving the value of these vehicles, classic car insurance offers a tailored solution that sets it apart from regular auto insurance.

• How do annual premiums on classic car insurance policies compare to regular auto insurance policies?

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  How can classic car insurance offer better, enhanced coverage and cost less than regular auto insurance at the same time?
  Classic car insurance offers notable cost advantages over regular auto insurance due to specific usage patterns and risk factors associated with collector vehicles. Here’s why classic car insurance premiums are generally lower:

  See Also

  Exotic & Import Car Insurance: Newer Vehicles | Hagerty

  1. Limited Usage:

  Pleasure or Hobby Use: To be eligible for classic car insurance, the vehicle is typically required to be used primarily for pleasure or hobby purposes. This means it’s not driven regularly for business, commuting, or general everyday use. Collector vehicles are often cherished possessions used selectively, resulting in lower annual mileage. Limited usage significantly reduces the likelihood of accidents, contributing to the lower risk profile associated with classic car insurance.

  2. Reduced Risk of Accidents:

  Traffic Conditions: Because classic cars are driven fewer miles each year and usually driven on special occasions, leisurely drives or hobby-related activities, exposure to potential accidents is inherently lower. This diminished usage translates into a lower frequency of collisions or types of loss, ultimately leading to fewer claims being filed.

  3. Fewer Injury Claims and Injury-Related Costs:

  Claim Frequency and Severity: Collector vehicles are typically well-maintained, carefully preserved, and driven by dedicated enthusiasts who prioritize safety and drive during times of less traffic congestion. Consequently, these vehicles involved in fewer accidents and have a lower frequency of accidents with injury. Additionally, due to limited occupancy and cautious driving, the risk of injuries to passengers is generally lower.

  4. Favorable Premiums:

  Fewer Claims = Lower Premiums: The combination of limited usage, reduced risk of accidents, and lower claims costs significantly influences the insurance premiums for classic car owners. Insurers factor in these elements when calculating rates, leading to more affordable premiums for classic car insurance policies, with savings up to 40% vs regular auto insurance.

  In summary, classic car insurance offers cost savings due to the specialized usage, reduced risk of accidents, and lower claims and injury costs associated with collector vehicles. By insuring vehicles primarily used for pleasure and driven less, classic car insurance provides enthusiasts with robust insurance coverage at a fraction of the cost of regular auto insurance.

• Are there any vehicle storage requirements on a classic car insurance policy?

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  To ensure your vehicle qualifies for coverage under a collector auto insurance policy, it’s essential to meet specific storage criteria. Adequate protection and storage when your vehicle is not in use are crucial. The following storage options are considered eligible:

  1. Private and Enclosed Garage: Storing your classic car in a private, enclosed garage is one of the primary and most secure storage options. It shields your vehicle from the elements and provides a controlled environment that helps preserve its condition and value.
  2. Rental or Storage/Garaging Unit: Utilizing a dedicated rental or storage unit designed to house vehicles is another suitable option.
  3. Carports or Other Storage Types: Depending on your state’s regulations and the specific insurance provider, carports and other storage types may also be eligible. These structures offer some protection against weather elements, but their eligibility could be subject to certain conditions.

  Ensuring that your classic car is properly stored and protected during periods of inactivity is vital to maintaining its value and condition. By adhering to these vehicle storage requirements, you not only meet the eligibility criteria for a collector auto insurance policy but also safeguard your cherished investment.

• Are there any mileage restrictions on a collector auto insurance policy?

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  To be eligible for a collector car insurance policy, the driving frequency / annual mileage of the collector vehicle should be primarily for hobby-related activities and occasional pleasure use. It’s important to note the following guidelines:

  • Hobby-Related Activities: The primary purpose of driving the vehicle should be for hobby-related activities, such as attending car shows, exhibitions, club events, and similar gatherings.
  • Occasional Pleasure Use: While collector vehicles are meant to be enjoyed, they should not be used for business purposes or as daily transportation. Occasional pleasure drives are encouraged, but the vehicle should not serve as a primary means of commuting to work or school.

  Select an Annual Mileage Plan Right for You:

  To accommodate your anticipated usage, collector car insurance policies often offer flexible annual mileage plans tailored to the estimated number of miles you intend to drive each year. Depending on the company, collector car insurance programs may offer an unlimited annual mileage plan for vehicles that are used primarily for hobby-related activities.

  For personalized guidance and to tailor your insurance plan according to your collector car usage and needs, don’t hesitate to reach out to our collector insurance specialists at (800) 360-2277.

• How old does a car have to be to qualify for a classic car insurance policy?

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  To determine eligibility for a classic car insurance policy, the age and characteristics of the vehicle play a key role. Here’s what you need to know:

  • Classic Car Definition: In most cases, a vehicle can be considered a classic car and potentially qualify for collector car insurance if it is at least 20 model years old. However, certain newer collectible and enthusiast vehicles, even those under 20 years old, may still be eligible for collector car insurance.
  • Consideration Factors: Newer vehicles that are less than 20 years old can be eligible for collector car insurance if they are unique, of special interest or generally considered collectible. This includes qualities like rarity, limited production, exotic features, collectability, modifications, or other distinctive traits that contribute to their collectible status.

  Core Characteristics of Collector Car Insurance:

  Classic car insurance is designed to protect “enthusiast vehicles” with Agreed Value insurance protection, provided that the vehicle/coverage meet certain criteria:

  • Vehicle Condition: Vehicles should be well-maintained and in good condition, reflecting their collector status.
  • Not Daily Drivers: These vehicles should not be used as daily transportation, distinguishing them from regular vehicles.
  • Stable/Appreciating in Value: Classic car insurance focuses on vehicles that have stable or appreciating in value.
  • Vehicle Storage: Vehicles should be securely stored in a private, enclosed facility/garage/storage location to ensure the vehicle is adequately protected and not subject to avoidable damage when not in use.

  It’s important to note that eligibility for collector auto insurance is not solely determined by the age of the vehicle. Other factors, such as uniqueness and collectability, also come into play.

  For a personalized assessment of whether your vehicle qualifies for collector auto insurance coverage, reach out to our collector insurance specialists at (800) 360-2277. Our experts are available to guide you through the qualification process and help you secure the right coverage for your valuable collector vehicle.

• What types of vehicles are eligible for collector car insurance?

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  Collector car insurance offers coverage for a diverse range of vehicles that are considered collectible. Here’s a comprehensive list of vehicle types that may qualify:

  • Antiques, Vintage, and Classic Cars: Timeless vehicles that have aged gracefully and hold historical significance.
  • Modern Classics from the 80s, 90s, and Post-2000s: Distinctive models from recent decades that exhibit classic characteristics.
  • Muscle Cars: High-performance vehicles known for their powerful engines and iconic designs.
  • Sports Cars: Nimble and agile vehicles designed for driving enthusiasts.
  • Vintage Race Cars: Historic race cars that have competed in past motorsports events.
  • Classic Trucks and SUVs: Collectible utility vehicles that evoke nostalgia and charm.
  • Classic Motorcycles: Two-wheeled classics with a rich heritage and unique styling.
  • Modified Vehicles, Hot Rods, Kit Cars, and Replicas: Custom-built vehicles that showcase individual creativity and innovation.
  • Custom Builds and Vehicles Under Restoration: Projects in various stages of restoration or customization.
  • Exotic, Hypercars, and Special Interest Vehicles: Rare, exclusive, and high-performance vehicles that turn heads.
  • Vintage Military Vehicles, Antique Tractors, and Retired Fire Trucks: Unconventional yet historic vehicles with distinctive features.
  • Japanese Domestic Market (JDM) Vehicles: Import vehicles from the Japanese market that hold collector appeal.
  • Low-riders and Tuners: Uniquely modified vehicles that reflect cultural and personal styles

• Is my vehicle eligible for collector car insurance coverage?

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  Determining if your vehicle is eligible for collector car insurance is based on several key criteria. Here’s what you need to know:

  Eligibility Criteria:

  To be eligible for collector car insurance, your vehicle should meet one of the following definitions:

  1. Collector Vehicle Types: Your vehicle should fall under one of the qualified types, including Classic Auto, Antique Auto, Vintage Auto, Restomod, Street Rod, Exotic, or Special Interest Vehicle.
  2. Condition: The vehicle must be in good operating condition, either previously restored or currently undergoing a restoration process.

  Usage Guidelines:

  Additionally, the usage of your antique or classic vehicle should align with certain guidelines:

  • Limited Vehicle Usage: Your vehicle should be driven on a limited basis, primarily for hobby-related events like car shows, exhibitions, club activities, parades or pleasure drives. When obtaining your insurance policy, you can specify your expected annual mileage based on these activities. It’s important to note that the vehicle should not be used for business purposes or as a daily driver.

  Storage Requirements:

  Finally, proper storage of your vehicle is crucial:

  • Appropriate Storage: When your vehicle is not in use, it must be stored in a way that safeguards its condition. This typically involves private enclosed garage storage or utilizing a dedicated vehicle storage facility.

  By meeting these eligibility criteria and adhering to the usage and storage guidelines, you increase the likelihood of your vehicle qualifying for collector car insurance coverage.

• Does my driving record impact eligibility or costs of classic car insurance?

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  Yes, your driving record does play a role in determining your eligibility and costs for collector car insurance. Here’s how it can impact your coverage:

  Eligibility Considerations:

  Having multiple accidents or driving violations on your record may affect your eligibility for collector car insurance. Insurers generally seek responsible and safe drivers who align with the specific usage patterns of collector vehicles.

  Cost Implications:

  Your driving record can also influence your collector car insurance premiums. While your insurance application might not be denied, a history of claims or excessive driving violations could lead to higher insurance costs. Insurers assess risks based on driving behavior, and a less-than-favorable record might result in increased premiums.

  Read more on collector car insurance eligibility here.

• What is the difference between classic car insurance and collector car insurance?

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  Classic car insurance and collector car insurance are related terms, but they hold distinct meanings within the realm of vintage and unique vehicle coverage. Here’s how they differ:

  Classic Car: Classic cars fall within the definition of collector cars, but they’re a subset limited to vehicles that fit specific age parameters.

  • Vehicle Age: Classic cars are typically categorized based on their age, often reflecting vehicles from earlier eras.
  • Classic Car Categories: Classic car insurance encompasses vehicles that meet age-based criteria, generally recognized as classics (20+ years), antiques (45+ years), or vintage (Pre-1945).

  Collector Car:

  • Broader Definition: Collector cars form a broader category that includes classic, antique, vintage, exotic, special interest, and a wider range of additional collectible vehicle categories.
  • Additional Vehicle Types: Collector cars encompass a more diverse spectrum, including well-preserved modern classics, limited production models, exotics, historical vehicles, and even customized variations like resto-mods, hot rods, rat rods, and street rods.

  Customized Protection through Collector vs Classic Car Insurance:
  Classic car insurance vs. collector car insurance are synonymous, referring to enhanced Agreed Value insurance policy protection on a non-daily driven, “special” vehicle.

  • Agreed Value Coverage: With Collector / Classic Car Insurance, the Agreed Value of the vehicle is agreed on upfront (i.e., at policy inception). This value takes into account the unique characteristics and worth of the classic or collector car. In the event of a covered total loss, the agreed-upon value is paid out, providing accurate coverage that reflects the vehicle’s true value.
  • Coverage Enhancements: Collector car insurance include other policy enhancements and optional coverages to address the unique risk exposures of diverse collector vehicles. These enhancements can include provisions for towing, VIN theft and fraud protection, discounted salvage buyback options, coverage for spare parts and automotive tools, disaster relocation coverage, and more.

• What is unique about classic car insurance from American Collectors?

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  American Collectors stands out with its exceptional TreasureGuard Classic and Collector Car Insurance. This industry-leading classic auto insurance policy, offered in partnership with American Modern Insurance Group, offers a host of benefits that set it apart beyond Agreed Value coverage. Here’s what makes TreasureGuard unique:

  Unparalleled Protection:

  American Collectors’ TreasureGuard Classic and Collector Car Insurance goes beyond traditional auto insurance coverage, offering an array of features that cater to collectors’ unique needs. This policy is a testament to our commitment to providing exceptional protection for your cherished collector car.

  Enhanced Coverages in Base Policy:

  • Disaster Relocation Coverage: Protects your investment by covering the costs of relocate your collector car to a safe location during natural disasters or emergencies.
  • Basic Towing Coverage: Provides peace of mind by offering built-in, basic coverage to reimburse towing expenses / roadside assistance for your collector car.
  • Automotive Tools / Spare Parts Coverage: Safeguards your collection of automotive tools / spare parts for the vehicle, ensuring that your essential components can be repaired / replaced if they experience a covered loss.
  • Full Safety Glass Coverage: Offers comprehensive glass coverage for your collector car with no deductible, ensuring that even chips / cracks in the safety glass can be addressed.
  • Pet Coverage: This unique feature covers your pets that may accompany you during your collector car adventures.

  Optional Coverage Packages: The TreasureGuard policy offers four optional coverage packages, allowing you to customize your policy to your exact coverage needs.

  • Salvage Buyback Option: TreasuredTitle is designed for vehicles with special sentimental or historical value, as well as limited production models, allowing you the option to re-purchase your special vehicle at a 50% discount to the estimated salvage value.
  • Titanium Bundle: This package bundles numerous bonus coverages such as: TreasuredTitle, VIN Fraud Coverage, Valuable Papers Coverage, Deductible Waiver on Total Losses, Vehicle Lock Coverage, Airbag Deployment, etc.

  Extraordinary Customer Service:

  American Collectors Insurance is proud to be ranked the #1 rated Classic Car Insurer among the leading, consumer-rating sites (e.g., Trustpilot, Google Reviews, Facebook and BBB). Our team shares your excitement about collector vehicles, understanding that your special vehicle is more than just a car, it as a member of your family.

• What is the difference between Actual Cash Value (ACV) coverage vs. Agreed Value coverage vs. Stated Value Coverage?

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  Navigating the nuances of auto insurance coverage options can be complex, especially when it comes to insuring your classic or collector car. Here’s a breakdown of the key differences between three primary methods of settling total loss claims:

  Actual Cash Value (ACV) Coverage:

  • ACV is commonly found in regular auto insurance policies.
  • Vehicle Value after Total Loss: In this method, a claims adjuster calculates the vehicle’s value after a total loss occurs.
  • Factors Considered: With an ACV policy, a claims adjuster will estimate the vehicle’s total loss value based on factory-installed equipment, adjusted for factors such as depreciation, vehicle condition, mileage, geographic location, and a variety of other factors.
  • Coverage Gap for Collector Cars: ACV calculations might not fully reflect a classic car’s value in the marketplace. A collector vehicle’s true value value may be higher than the ACV estimate because of aftermarket vehicle performance upgrades, vehicle restoration investments, custom paint designs, and/or safety and drivability enhancements.

  Agreed Value Coverage:

  • Common in classic car insurance policies.
  • Vehicle Value after Total Loss: The Agreed Value is determined beforehand and listed on the policy declarations page when the policy begins, before any claim occurs.
  • Unique Considerations: This coverage method takes into account a classic or collector car’s distinct characteristics, improvements, and other factors that impact its value.
  • Certainty of Vehicle’s Total Loss Value: In the event of a covered total loss, the vehicle’s Agreed Value is paid, less any applicable deductible, ensuring accurate coverage that reflects the vehicle’s true worth.

  Stated Value Coverage:

  • A hybrid method offered by some regular auto insurers through an endorsem*nt on their personal auto insurance policy.
  • Stated Value Amount: The “stated value” for each collector vehicle is itemized and listed on the policy declarations page.
  • Vehicle Value after Total Loss: Stated Value policies contains a loss settlement provision allowing the insurer to value a total loss claim at the lesser of either the ACV estimate or the Stated Value on the policy.
  • Sample Policy Language for Stated Value coverage: “In case of theft or total loss, we will pay the Stated Value or the Actual Cash Value, whichever is less.”

  Selecting the Right Coverage:

  It’s crucial to understand how your insurance policy handles theft or total loss accidents involving your collector vehicle. Agreed Value coverage provides additional peace of mind by ensuring you have certainty about your vehicle’s “total loss value.” This level of coverage provides classic and collector car owners the assurance that their financial investments in purchasing, restoring, customizing, or upgrading their vehicles are adequately protected.

• What kinds of insurance coverage does classic car insurance policy contain?

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  Understanding the breadth of coverage offered by classic car insurance is essential for protecting your cherished investment. Here’s what you need to know about the types of losses that a classic car insurance policy covers:

  Coverages Comparable to Regular Auto Insurance:

  A classic car insurance policy may include the primary coverages found in a standard auto policy, depending on the coverage options you select. These essential elements may include:

  • Required financial responsibility and liability coverages, such as Bodily Injury and Property Damage protection.
  • Uninsured Motorist and Underinsured motorist coverages to shield you from injuries caused by motorists lacking sufficient auto insurance.
  • Medical coverages like Personal Injury Protection (PIP) or Medical Payments coverage for immediate medical needs resulting from an auto accident, regardless of which party was at fault.

  Enhanced Physical Damage Coverage on Your Vehicle:

  • Collision and Comprehensive (a.k.a. Other than Collision) coverage for the repair or replacement of your cherished vehicle in the event of damage, accidents, or theft.
  • Your classic car is covered for the Agreed Value listed on the Declarations Page, to reflect the true value of your special vehicle.

  Bonus Coverages Available with Collector Car Insurance Policies:
  Depending on your selected collector car policy, you may enjoy bonus coverages at no extra cost, such as: Towing and Emergency Expense coverage, Full Safety Glass coverage with a $0 deductible, Disaster Relocation Expense coverage, Automotive Tools and Spare Parts coverage, Incidental Travel Expense coverage, and even Injured Pet coverage.
  
  Tailored Optional Coverages:

  Your collector car insurance policy can be further personalized with optional coverage enhancements. These options include: adding /enhancing towing and roadside assistance, option to buyback salvage on total loss vehicles, rekey your locks post-theft, waiving deductibles on total losses, offering rewards for information on thefts or hit-and-run accidents, and reimbursem*nt for expenses resulting from fraudulent titles or VINs.
  
  Elevating Classic Car Ownership:

  Collector car insurance goes beyond conventional auto insurance policies. It’s designed to enrich your classic car ownership journey by offering enhanced coverage, convenience, and security.

  Discover the specialized protection and added benefits of collector car insurance. Contact us at: (800) 360-2277 to explore the tailored coverage options available.

• Is there a difference between Agreed Value coverage vs other policy coverage that "guarantees" a vehicle amount on a classic car insurance policy?

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  In order to create marketing differentiation, GUARANTEED VALUE was registered by The Hagerty Group, LLC as a brand name for its “Agreed Value” insurance coverage program ( https://uspto.report/TM/86765285 ).

  This trademark/wordmark is clarified in an FAQ answer to the question: “What is the difference between agreed value and stated value insurance coverage?” https://www.hagerty.com/insurance/classic-car-insurance

  The TreasureGuardTM Classic and Collector Car Insurance Policy utilizes the more widely-known/accepted insurance term “Agreed Value” to describe our insurance coverage. “Agreed Value” coverage is a valuation/claims settlement methodology term that is used across many different types of property insurance, including small business insurance, auto insurance, homeowners insurance, boat insurance, etc.

  You can determine if your collector car insurance policy has Agreed Value coverage (or its equivalent) by looking for references to “agreed value” in the “LIMIT OF LIABILITY” section under “PART D – COVERAGE FOR DAMAGE TO YOUR AUTO” in your collector car insurance policy.

  Sample Language to verify if your classic car insurance policy has Agreed Value coverage: “In the event the property is stolen, totally destroyed, or deemed a constructive total loss we will pay the agreed value as shown on the Declarations.”