When it comes to insuring classic, collector, modified & race cars, not all insurance policies are created equal. It’s important that car owners take the time to really understand the coverages these policies offer or they could be leaving themselves open to some “headaches.” I tell people if they are unsure, it’s usually a good idea to find an agent familiar with these types of policies who can explain the specifics of the coverage they will provide. One thing to keep an eye out for is policies that offer “stated value” coverage, which may depreciate the value of your vehicle in the event of a claim. An alternative is an “Agreed Value” policy, where once you and the insurance company agree on the value of the vehicle, that is the amount that would be paid out in the event of a covered total loss.
For those people who have turned their passion for cars into a career, good news! There are also policies available for dealerships, museums, restorers, storage facilities and clubs that are specifically written to cover businesses working with collector cars. When it comes to these types of policies it is important that the company will actually insure your client’s vehicles for what they are actually worth.
Motorsports off track insurance mean your vehicle is covered when it is not on the racing surface, which is honestly most of the time when you stop to think about it. Chances are you probably don’t have insurance coverage for when it is in your trailer, being towed, loading, or unloading in the pit or paddock area, or even in your shop. In fact, most people I talk to don’t even realize they have options when it comes to insuring these types of vehicles. Same as collector cars, the best practice is to find a company that understands the value on vehicles like Junior dragsters and Quarter Midgets to T/A Funny cars and Dirt Modified.
At the end of the day no one knows your car’s details better than yourself, so it’s up to you to make sure you don’t end up with inferior coverage.
Ed Krajewski – EJKINSURANCE.COM