No matter if you own a classic muscle car, or if you would like to, there is one thing that all of us have in common: insurance. Insurance – that one word almost everyone, except for insurance agents, says with a tone sour. People usually take out auto insurance policies, pay the premium …., and never have to file a claim. If you do find yourself in a position where you need to file a claim (in case of theft, fire or a collision, for example), it is possible. You’ll be glad your insurance policy is there for you. Insurance is designed to mitigate risk. With the rising value of muscle cars, it is essential that you insure them properly. The big question is: What type of insurance do I need? Here’s a quick overview of the topic:
Are you looking for regular old insurance? We don’t recommend regular old insurance. Regular car insurance is what you have on your daily driver. It is usually a vehicle that is less than 15 years old. If your car is damaged or destroyed in an accident, the insurance company will give you a check for the (basically) blue book value. This is a simplified explanation, but it’s important to understand. Blue book values for cars decrease with age. This means that if you have just spent $40,000 on a ’67 GTX restoration or just bought one, you will need to insure it differently.
A majority of classic muscle car owners will choose “agreed-value” insurance, especially if they have a large car. You and your insurance company will agree on a coverage amount for your car, such as $40,000, and then you will pay a monthly premium. These policies have been offered by companies like Grundy and Hagerty for many years. They also have very low premiums. This is a great way for your car to be covered at a low cost and for a large amount of money. But here’s the catch. Usage. The majority of companies that offer “agreed values” policies require that the vehicle you insure is not used for daily transportation. The car you drive to work or for daily transportation (such as to the grocery store, mall, etc.). You will also need to keep your special car locked away when it is not being used and your daily transport vehicle should not be older than 15 years. Although there are no restrictions on annual mileage, it is insurance for those who drive their cars in parades and at car shows or take part in cruises. If this is you, the agreed value is what you want. It’s hard to find a better deal than this.
What if your car is used more often or daily? If this is you, then “stated-value” insurance might be the best option. It works in the same way as regular car insurance, but it has a stated value for your car and a coverage amount. An appraisal of your car is required. This insurance differs from the agreed value. You will need to search for an insurance company. These policies are offered by the major auto insurance companies, such as Allstate. While it won’t be as affordable as the agreed-value policies, it will give you the coverage you need.
Summary Before you insure your muscle car, first determine what kind of use it will get. Then, choose the right type of insurance to cover that. Agreed value is best for you if you are a “parade”, car show, and cruise guy. Stated Value is best if you plan to use the car daily. You can price the policy in both directions, just like with any other policy. The Stated Value policy may be better than your regular policy if you combine it with the multi-car discount.