How Collectors Vehicle Insurance Is Different From Auto Insurance

The main differences between collectors vehicle insurance and ordinary auto policies are quite notably distinct and very important. Even hough they might not seem specific at first, you should get yourself acquainted with these differences. This can make or break your investment in the event of a loss or damage to your collectible vehicle. 

The Key Differences 

Instead of a depreciated cash value, collectors vehicle insurance covers an agreed-upon value. This means you and the insurer settle on the car’s worth upfront, which ensures full payout for total loss. Standard auto insurance pays "actual cash value" at the time of loss. This is often far less than the vehicle is worth. Collectors vehicle insurance may also require garage storage and mileage caps. It may also come with coverage and endorsements such as restoration costs, spare parts, trip interruption to car shows and roadside assistance. As collector cars tend to be stored carefully and aren’t driven much, the insurance for them tends to be less expensive than typical auto insurance. Because standard auto covers vehicles used daily, there are often no usage restrictions. Generally, the vehicle in question must meet certain qualifications such as age and condition. While regular car insurance regards your vehicle as a depreciating asset, collectors insurance treats the vehicle as a valuable investment. 

The Insurance Outfit Serving Chester, NJ 

If you are in the market for collectors insurance and are in the Chester, NJ area, please contact us at The Insurance Outfit. Our knowledgeable and helpful agents will do all they can to help you find the insurance policy best suited for you and your needs.