It’s officially springtime in New England. Longer days and warmer weather mean more time to enjoy getting behind the wheel of your special car. When you take the car cover off, check the fluids and tires, and prep your vehicle for the road, you may want to also consider reviewing your insurance coverage. Your collectible car is unique from other cars on the road and the way it is insured should be too.
RogersGray offers coverage through Hagerty who encourages driving your classic and created protection just for collector cars like yours. The specialty insurance policies they offer differ greatly when it comes to setting a value for your vehicle and how you are compensated in the event of a loss. There are three ways auto insurance pays a claim:
1) Actual Cash Value
Most everyday insurers offer Actual Cash Value policies. This is what an insurance adjuster says your car is worth, usually based on used car values – not the enthusiast car market. If your vehicle is stolen or declared a total loss after an accident, it’s unlikely you’ll be compensated for its true value.
2) Stated Value
Many everyday insurers offer Stated Value policies for enthusiast vehicles, which allows insurers to pay the lesser between Stated Value and Actual Cash Value and is based on the vehicle’s value. In fact, it may pay less than the Stated Value if the Actual Cash Value is lower at the time of the accident.
3) Agreed Value or Guaranteed Value
Most specialty insurers offer Agreed Value. Hagerty offers Guaranteed Value®: you help determine an accurate value up front and that’s what you’re paid if there’s a covered total loss.* Guaranteed Value helps ensure you’ll be compensated for the true cost to repair or replace your collector vehicle based on data from Hagerty Valuation Tools® not the used car market.