Classic Car Accident: Is my car’s value calculated correctly in the eyes of the law?

The appeal of owning a classic car is undeniable. However, a classic car has special requirements when it comes to getting them restored and maintained. As far as insurance, these cars are considered to be an asset that appreciates and not one that depreciates, as newer models do.

Owning a classic car requires both research and commitment on the part of the owner, since they may face obstacles in finding parts. But classic car owners are proud of them and many believe that their classic cars are much better built and rarely have problems when compared to other vehicles. The one thing classic car owner all agree on is that they don’t want to have to deal with the hassle of being in an accident and expecting the value of their cars to be correctly calculated in the eyes of the law. Yet, every time that car pulls out of its parking spot, it risks being in an accident.

Have Your Classic Car Appraised

Knowing the value of your classic car is necessary before you call an insurance company to have it insured. By considering the true condition of the car, examining its interior, driving it, and seeing how it functions, the professional appraiser will make notes and take pictures before offering you a number. The appraised value will help define what coverage you will be able to obtain.

Getting Insurance for Your Classic Car

Once you have the appraised value, shop for a classic car insurance policy. You may find that the policies offered to consider the car as a decoration, limiting the miles you can drive or stating that it can only be driven under certain conditions. Not giving your insurance agent the right information regarding how or how much the car is used may get you in trouble should you be in an accident and need to file a claim. Read the fine print before signing.

It is interesting to note that the valuation of the car for insurance purposes is usually a number agreed upon between the owner and the insurance company, always based on the appraised value. Other points that are considered when purchasing an insurance policy for your classic car are:

That this is a vehicle that will not be used for daily errands such as going to work or driving the kids to school.

  • That the driver is licensed with the state.
  • That the driver has few or no violations on their driving record.
  • That it will be stored in an approved enclosed structure such as a barn or an approved garage.
  • That physical damage insurance should be purchased as well.
  • That the owner will notify the insurance company of any modifications that are made, and that not doing so may invalidate the policy.

How do you come up with the agreed value?

Gather all documentation related to the car and save all receipts for parts that were purchased for the restoration. The number you and the insurance company come up with will probably not be equal to the actual value but may be better than the stated actual cash value on standard policies. Fasig|Brooks recommends that you accept only the most accurate value when purchasing the policy to get the most accurate payouts after an accident.

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