A classic car is like an important part of an inheritance that, if something should happen to it, if, God forbid, it should be in a wreck, then you can replace it with a car of equal value. This is why when you have a classic car, you need to get a special type of vehicle insurance. The reason for this is that with regular vehicle insurance, they give you the amount of money when your car needs to be replaced based on a car’s depreciation over the years. Classic cars aren’t like newer cars in this category, though, because every year that you own a classic car, its value goes up instead of down, so you need a vehicle insurance company that will pay you for the increase in price.
What you do once you are with a classic vehicle insurance company is come to an agreement on the value of your car. The agreed value is what your company will pay to you in the event of a total loss, and there will be no need for negotiations, because that price will be set in stone. So how do you find out what the agreed value for your car should be? Well, normally you can find the prices listed in industry information sources such as Kelley’s Blue Book or the NADA guide. However, if your car has something special about it that makes you think the price should be higher for the agreed value, you don’t have to settle for that. In this case you would need to get an appraiser to determine the actual value of your car.
If your car has recently been restored, or you have modified it significantly, then the guides to price won’t give you any help at all. This is because all modified vehicles have such significant changes done to them that they are worth different things. And all restored vehicles are restored to a certain extent, which is also a difference in worth. If you are doing any kind of work on your car that would result in you having a different price for your classic vehicle insurance, then you need to keep records of what you’re doing to it and when. Usually, it’s better to get the modifications or restorations done by a professional rather than yourself, because the vehicle insurance company is more likely to accept this as documentation.
Since you have a car that needs an agreed value, though, it will go up in price every year. You and your vehicle insurance company will have to decide at the end of each year what the new agreed value should be. This is time consuming and repetitive, which is why there is an easier way to handle things. This is getting your car to have an automatic value appreciation. Some insurance companies, like American Collectors Insurance, have things like an inflation guard. for ACI, the inflation guard will automatically account for the inflation of the car’s worth for up to eight percent every year that you insure it with them, so you don’t have to constantly be reviewing the agreed value.
Cheers,
Fashun Guadarrama.
