If you are a car collector of vintage or antique car, then you must make certain that your valuable collection will be protected through a reliable insurance policy. Although some view it as expensive it is very important that you get a Florida car insurance to protect your investment.
When you purchase car insurance for your antique car, you are basically purchasing protection for those times when some unfortunate events happen such as a road accident, natural disasters, vandalism and theft. Similar to the airbags installed in modern cars, classic car insurance can be used to protect the driver when a collision happens. However, this protection could be used to patch things up and to make sure you have ready funds to pay for damages and for medical expenses. The time and effort you invest in searching for cheap car insurance in Florida could be worth it because you can have peace of mind that you are always protected whatever happens.
The entire premise and nature of insurance is that it must serve its purpose in case of any emergency, wherein you are not at fault. Car insurance for vintage cars is quite different from regular cars or contemporary models. Antique car insurance or vintage car insurance is offered particularly for the needs of a vintage car collector. Even though cheap car insurance in Florida can offer some kind of protection, regardless of the model of the car you drive, the cost of your investment might not be compensated well if the coverage is limited by the terms of a regular insurance policy.
For example, suppose you have a 1955 Chevrolet Bel-Air in your garage worth $ 5,000 back then (equal to $ 40,000 today). However, dealers have offered you almost double the price, and you saw online another classic car for $ 50,000. If you are not covered with a special vintage car insurance, and the car was damaged because of natural disaster, you will be lucky enough to get $ 5,000 for it. Because of depreciation, insurance companies might decide that it could be half that price or lesser and you could end up with $ 2,000 or $ 3,000 at most. Well, this is not fair but that is the business of insurance.
In buying cheap car insurance in Florida for you classic car, there are three types of value that you must understand – actual price value, agreed value and stated value. Let us discuss them one by one.
Actual cash value
This type of value refers to what you normally receive with regular Florida car insurance. This is primarily based on replacement cost less the cost of depreciation.
In most states in the US, those who offer car insurance for vintage types are provided with the privilege to provide coverage for a value that you and your insurance provider have come into terms of agreement. For most cars, there is no deductible. If your $35,000 vintage Cadillac Deville Convertible got damaged, you can get a check for $500. This is precisely why collectors get special vintage car insurance.
There are car insurance agencies that might either decline coverage or only provide a replacement cost based on parts damages less the heavy depreciation value of the vintage car. They might also charge you with a prohibitive value for the insurance premium. However, many classic car collectors find that special collectors insurance can provide savings up to 50 % while getting insurance with high limits, often times twice of thrice the value of a regular insurance agency provided them.
In a stated value, the Florida car insurance agency will pay for the stated value of the car, but might not provide guarantee on the total value. Moreover, any deductibles beyond $1,000 might be disallowed.