What is collector car insurance—and do I need it?

With their unique origin stories, custom features, and restoration journeys, no two collector cars are the same. Insurance options for these vehicles should follow suit, catering to the nuances the collector space is built upon and designed for one-of-a-kind vehicles and those who own them. Enter collector car insurance, insurance offering specialized resources, services, and claims processes, from a robust network of repair professionals to unique coverages, reflective of the vehicle’s actual purposes and use.

Here, Marcus Maingot, Vice President, Product Management, of Berkley One, shares the benefits of collector car insurance, along with insights to help you determine auto coverage options you need.

Settlement value

The standard market auto policies typically determine their total loss settlements based on actual cash value, the amount the car is worth at the time of the loss, considering how much the car has depreciated over the years. But this approach may not apply well to collector vehicles, whose value is highly dependent on factors such as condition, special features, production numbers, and provenance which could result in increased value over time.

A lineup of collector vehicles showcased at a local car show.

“All of these details may add substantial value to the car,” says Maingot. “An average, 30-year-old Ford Bronco valuation may be $2,500, but if it’s a fully restored vehicle, it may be worth substantially more.”

Older cars can be undervalued on a standard auto policy; for these reasons, typically collector car policies insure on an agreed value settlement basis, determining a dollar amount up front for the vehicle’s value that the insured can receive in the event of a covered total loss.

When collector policies renew annually, the agreed value can be adjusted, for reasons such as a vehicle’s appreciation due to restoration work or a heightened interest in the car or collector market. “If the market changes or if you make improvements to the vehicle and the vehicle increases in value, you can modify the agreed value amount to reflect the change in value,” says Maingot.

Possible lower rates and premium credits

Collector car insurance policies are often rated differently since these vehicles are driven far fewer miles than daily-use vehicles.

“Collector car policies are not generally meant for daily commutes, and the rating takes this into account,” says Maingot.

While a collector vehicle policy typically requires that the collector vehicle be protected in a garage or secure storage space any efforts beyond this may result in premium credits. “Establishing additional protections, such as fire sprinklers and alarm systems in the places where the collector vehicle is kept, may result in premium credits,” says Maingot. “In taking these steps, the owner is treating their vehicles like valuable art pieces—because the truth of the matter is, some of these cars are one of a kind.”

Resources and Classics Expertise

a one-of-a-kind collector vehicle displayed at a local car show in Ohio.

Another benefit of collector car insurance is the resources some carriers make available to the insured for repairs in the event of a claim.

“A lot of collector cars, particularly if they’re older, require very specialized knowledge and materials, and the vehicle may need to be shipped many miles to have the proper repairs after a covered loss,” says Maingot.

“It makes a difference to work with a company that offers this kind of coverage and has experience with handling these kinds of claims on a regular basis.” Collector car carriers may also offer coverage for specialized emergency services, from jump-starts and tire changes to fuel delivery and locksmith help.

Disaster relocation

In certain states, some policies may extend coverage for expenses associated with disaster relocation such as helping to transport collector vehicles away from the site of potential damage. “You could be reimbursed a stated dollar amount for expenses incurred to move the vehicle away from the threat of a covered peril,” says Maingot.

How do I learn more about eligibility?

Several factors determine a vehicle’s eligibility for collector coverage, including its age, how well it retains value over time, and how it’s used (such as for shows, parades, or occasional pleasure drives). For personalized guidance, consult your insurance producer to explore the right coverage for your collector vehicle.

–

Berkley One is an insurance provider for modern, sophisticated individuals and families. We’re redefining insurance with technology, innovation, expertise and the backing of Berkley, one of the nation’s premier insurance providers. Offering customized options for homes, automobiles, fine art, collectibles, liability, recreational marine and collector vehicles, we give clients the confidence to move forward and live their adventure.