Protecting collectible cars

(NAPSI)-Baby baby boomer are refueling a growth interest in classic car collection, with rank in the state’s largest antique car club now reach 60,000.

But while most car collectors know there’s a big difference between the vehicles they collect and the ones they drive every day, not everyone insures his or her collectable and everyday vehicles otherwise. Experts say that could leave collectors in a financial bind should they need to file a claim.

So how can you be certain your collectable car is insured person properly? Here’s a nearer look:

Think Actual Market Value

Like any other trade goods, collectible vehicles�"which include antiques, classics, street rods, modifieds and exotics�"change in value on a frequent basis and their insurance should reflect that. For case, a 1967 Shelby Mustang, which just a few years ago could be bought for as low as $35,000, is fetching around $200,000 at large auctions today.

Daily-use vehicles are insured person on an ACV (actual cash value) basis, which means if you have a total loss, you’ll be paid the master purchase price of your car less all depreciation to the date of loss. But collectable cars should be insured person based on something known as an agreed value basis.

For illustration, a company called Classic Auto Insurance specializes in collectable autos. In the case of a total loss, it pays the insured person party the true electric current market value of his/her collectable vehicle, as opposed to the master purchase price, less depreciation. This good reflects the nature of collectable cars, which tend to addition in value, instead than lessening.

Don’t Pay For Unused Miles

Traditional insurers typically require insurance coverage equivalent to an owner’s primary election car, even although car collectors usually only drive their old-timer about 1,000 miles a year.

collectable car policies should be much less expensive than a standard driving policy, as it’s anticipated that a collectible car will be driven far less than a regular use auto. For instance, Classic Auto Insurance offers policies in three mileage cutoffs: 1,000, 3,000 or 5,000 miles per year. Be sure you’re not paying for miles that you don’t drive.

For more information on insuring a collectible car, call (800) 397-0765 or go to the Web site www.classicins.com.

Protecting A Passion�"Collectible cars need to be insured differently than everyday cars.