The cost of insuring your car is typically reduced as your car ages. The older your car gets, the less money it is worth, meaning that your premiums are reduced. In the event of an accident, insurance companies would have to pay less on your claim.

1. Insure Your Classic Car
The cost of insuring your car is typically reduced as your car ages. The older your car gets, the less
money it is worth, meaning that your premiums are reduced. In the event of an accident, insurance
companies would have to pay less on your claim. This all changes, however, when you’re trying to insure
a classic car.
The blue book value of these cars is a mere
fraction of their actual value, especially if the
vehicle has been fully restored. A different type of
insurance is needed to cover the market value of
the vehicle as opposed to the ‘cash value’ listed in
the blue book.
Full Coverage
Two basic types of insurance exist when it comes to getting coverage for your classic car, stated value
insurance, and agreed value insurance. Stated value insurance allows you to declare the value of your
car and insure it for that amount. It is possible, however, that the value of the vehicle according to the
policy may depreciate, so check the fine print before signing.
Agreed value is the recommended type of coverage for insuring classic cars. You and your insurance
provider agree on a set value of a vehicle and your car is insured for that value. In the event of total loss
of the vehicle, the full amount is paid to you, the insured. The value of the car will n ever depreciate over
the course of the policy.
Keep in mind that there may be some restrictions for this type of policy. Many insurers restrict the
number of miles you are allowed to drive the vehicle per month or year or require you to transport the
vehicle via an enclosed trailer. Your policy may also only cover your vehicle during specific events like
parades or car shows.
Be Specific
The key to quality coverage for your classic car is to know the
details of your policy. Be very clear with your provider regarding
what type of coverage you wish to have for your classic car. Get all
the details and know exactly what you need to do to comply with
the terms of your policy.

2. It is also important that you periodically review your policy and adjust it as needed. If the vehicle will be
garaged for an extended amount of time or if the value of the car has increased, you will want to adjust
the policy accordingly.
You may also be able to insure your hot rod or custom car with an agreed value policy. Check wi th your
provider to see what type of insurance is available to you. Keep in mind that some insurers only insure
stated value policies and you may need to seek out a specialty insurance agent for an agreed value
policy.
For classic cars, custom cars, or your family vehicle, quality auto insurance is a must. If you are looking
for auto insurance in Magnolia, TX, Prodigy Insurance is here for you. Give us a call, visit us online, or
stop by our office today for a quote!
Photo Credit: http://collecting.wdfiles.com/, http://autobahnmotorsgroup.com/