Page 10 - Explore Your AAA – AAA Southern Pennsylvania – Summer 2022

EXPLORE | CARS & DRIVING SUMMER EDITION 2022
How to Choose Insurance for Classic Cars
For years you’ve been saving and searching and the time has finally come to purchase the car of your dreams – a 1971 Chevrolet Corvette. But before you buy, it’s important to make sure you have the correct insurance for your new classic car. While insurance coverage is a legal requirement for every kind of vehicle driven, antique and classic cars need specialty insurance. An everyday insurance policy that’s perfect for your daily-use car just doesn’t cut it when it comes to classics.
So how do you go about choosing the right insurance for your classic car? Specialty and everyday policies differ greatly when
it comes to the value of your vehicle and how you are compensated in the event of
a total loss.
ACTUAL CASH VALUE
Most insurers offer Actual Cash Value
policies. This is what insurance adjusters say your car is worth and is usually based on the used car values, not the classic car market. If your car is stolen or you were in an accident, you wouldn’t be compensated for the true value of your classic car.
STATED VALUE
With Stated Value policies, insurance companies allow the car owner to set the value. However, before choosing this policy, be wary: the insurer only has to pay up to
the Stated Value and is even allowed to pay the lesser
of the Stated Value or the Actual Cash Value, less any deductible.
AGREED VALUE
The only way to make sure that you are compensated for the full value of your classic car is with an Agreed Value policy. This is where you and the insurance company agree on the value of your car. Some insurance companies may require you to get an appraisal at your expense, while other insurers may insure cars for book value with no negotiations.
Monkey Business Images | Shutterstock
If you’re in the market for classic car insurance, here are a few tips to follow when choosing a provider:
• Agreed Value coverage is the only way to make sure you are
getting the full value of your classic car.
• Do your research to make sure the company has a good
reputation. Ask around or check online reviews to find out
how the company treats its clients.
• An insurance provider should have good financial stability.
Look for an A.M. Best rating of “A-“ or better. This rating means that the company is financially strong and benefits from good management.
• Does the insurance company let you have a choice of repair shop? If something happens and you need to file a claim, you should choose what repair facility you want to work on your classic car.
• Look to make sure the insurance company has experience and expertise when it comes to classic cars.
To find out what options are available to you for classic car insurance policies, contact your AAA Insurance Agent at 1-800-222-1469, go to AAA.com/Insurance or visit your local AAA office.
HAVE A CLASSIC CAR? Give us your best shot! Share your photos of your classic car with us. Selected photos may be featured in an upcoming edition of Explore Your AAA, on our website or our social media pages. Send your photos and story to marketing@aaasp.com or mail them to Explore Your AAA / AAA Southern Pennsylvania, 2840 Eastern Blvd., York, PA 17402-2908.
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