Standard Is As Standard Does
Depending on the type of car you own and your
driving history of tickets and accidents, you are likely insured
in the standard or preferred auto market. Standard and Preferred
markets are nearly identical. They both cover typical car owners,
driving typical cars in typical uses. Typical or average cars
and operators allow insurance companies to use a comfortable set
of assumptions on what to expect for the number or losses and
the expense of repairing the losses so that premiums can be developed
and charged. But what if you own a classic or antique auto? Well
the above assumptions can be tossed out because you're in a special
coverage situation.
Coverage Needs
You may have to reach out to the specialty
market for protection of your special auto. A classic auto is
commonly considered to be an auto around 15 to 25 years old and,
naturally, has appreciated in value. Specialty coverage is necessary
because standard auto coverage rates are based upon a car losing
value each year due to aging and normal vehicle use. The owner
of a classic or antique car needs coverage for a vehicle that
maintains or increases in value. Further, such owners have to
deal with a carrier that has expertise in handling losses to their
collectible cars as well as being experienced in making the necessary
considerations to charge the right premium.
Rating And Eligibility Considerations
Specialty car insurers typically base their
rates on elements such as:
- car's current value (often established
by appraisal)
- any special design or features
- deductible
- use (exhibition, touring, parade)
- availability of storage in a locked garage
- owner's age (no youthful drivers)
- whether spare part coverage is included
- availability of another car for normal
vehicle use
- whether the car's coverage includes automatic
increases to account for inflation
If you have a special auto, talk to your insurance
professional for advice. He or she shares your concern for having
the right type of coverage.
