Important Items to Consider When Insuring Your Collector Vehicle

(1)    Look for an insurance policy designed specifically for collector automobiles.  i.e.-Antiques, Classics, Hot Rods and Customs. The type of policy you definitely want to have covering your automobile should include the following Ontario policy endorsement form: “OPCF # 19A—AGREED VALUE”.  This means your automobile value will not be depreciated at the time of a total loss provided it was” honestly and correctly” described and presented to the insurance company.

A policy that does not include the “ OPCF # 19a–Agreed Value endorsement” may only be a “Stated Value or Actual Cash Value (ACV) policy and can potentially depreciate your vehicle value, which ultimately means that if a claim occurs the settlement may also be reduced from the insured amount shown on the policy declaration page.

(2)    Consider insuring your collector car with an insurance company that offers a specialized collector automobile insurance program. Generally these programs will save you money and most will also include the “Agreed Value OPCF # 19A Endorsement”.  (It is always recommended that you consult with the insurer regarding all specific coverages included before placing the insurance)

Generally the companies and brokerages providing these specialized “Agreed Value” policies have a staff of Brokers and Agents who are also avid collector automobile enthusiasts themselves. These brokers and agents understand the type of policy the collector car owner needs and can easily explain all of the coverage options available.

(3)     All insurance companies agree that the only true measurement of a collector automobile’s value is based on its “Reasonable Fair Market Value”. Therefore, it is important to have your automobile valued properly and it is your responsibility to provide the insurance company with documentation which properly values your vehicle. It could be a problem for you at the time of a claim if the value of the vehicle was understated or overstated.

You may encounter an insurance company who does not require a vehicle appraisal. These companies will issue a policy based upon your valuation. If a claim occurs and their claims adjuster, and their appraiser, do not agree that your valuation was reasonable, you could have a problem since you have nothing to substantiate your valuation.

The solution?  Obtain an APPRAISAL from a qualified independent appraiser before insuring your vehicle. Once an appraisal has been accepted by an insurance company there should be no surprises in the event of a claim and you will have the benefit of being able to call upon your independent appraiser to assist should a conflict arise.

(4)    Check to see if the company insuring your collector automobile has a mileage limitation. Most collector car specialty insurance programs do not have a maximum mile or kilometer limit that the vehicle may be driven in a 1 year period. We would recommend that you ask the company currently insuring your vehicle or the company you are considering placing your insurance coverage with if they have a mileage restriction or limitation. In our opinion it is better to be insured with a company that does not have a mileage limitation

(5)    It is recommended that you keep your collectible vehicle insured continuously all year round. Whether the vehicle is in storage or under restoration, circumstances out of your control can happen. For example; fire, vehicle theft and or vandalism.

If the vehicle is at a shop and under restoration it is a target for theft of parts. Have the vehicle and any and all parts you have for the vehicle documented and photographed in an appraisal format and insured accordingly. Yes, it may mean you have to have the appraiser back to see the car a time or two during the restoration or build to update the vehicle status but in the unfortunate event of a claim that update may save you thousands of dollars.