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Classic car insurance is generally tailored to the specific vehicle, and the needs of the collector. There are three significant values to understand when insuring a classic car: Actual cash value; stated value; and agreed value.

Actual cash value is the usual way insurance companies calculate the value of a car: It's based on replacement cost minus depreciation.

Stated value is when there is a specified value in your contract. The insurance company may not guarantee up to the full stated value of the car.

Agreed value is what you are looking for when insuring a classic car. Insurance companies that provide classic car insurance will generally agree on the worth of the automobile with the car collector. You sign the contract agreeing on how much both parties feel the car is worth, and then if the car is totaled or stolen, they reimburse you the full agreed upon value.

Most classic car insurance companies will have a set of conditions. These can include: A clean driving record; at least 10 years driving experience; proof that you have another car for transport; very limited mileage; no teens or drivers with poor records on the policy; proof of secure and out of weather garage; and sometimes the age of the classic car (some cars are deemed too young to be considered classic cars).

The mileage limits on classic cars are fairly low. However, if you truly are a collector, then you don't want to expose your baby to risks anyways. You and your insurance company agree on that much.

Some classic cars might require restoration or special maintenance. Notify your insurance agent and make sure they give you the appropriate insurance to take into account any restoration work.

There are often other stipulations, but they vary from insurance company to insurance company. Check with all of them to find the right deal for you.

If you do buy a classic car, be sure to get it insured right away. Classic or antique cars often appreciate in value over time; however if you total the car without insurance, you might be lucky to get back what you paid for it originally. This can be a difference of tens of thousands of dollars. Review your coverage every few years, because the amount you insured the car for a few years ago may not come close to what the car is currently worth.

There are major companies that specifically deal in classic or collector's car insurance. Among them, American Collectors, Hagerty, or Parish Heacock provide professional insurance services for car collectors. Traditional insurance companies will either refuse to insure a classic car, or charge exorbitant premiums to only replace the hard value of the components, which will in no way come near the actual market value. Specialty collector's car insurance can get you full market value coverage for less than what a traditional company charges you for.

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