At the Sloan Insurance Agency of Elmer, NJ, we know that insurance policies contain some complex terminology. We deal with these terms daily, but our clients don’t, so we put together this short primer on classic car insurance terms you need to understand before purchasing your policy.
Some policies offer a diminishing deductible that reduces either annually or according to another specified term, such as every three years or every five years. The diminishing deductible requires that you remain claim-free for the year; we apply it at your annual policy renewal.
Limited Use Coverage
Classic car insurance limits the mileage you can accrue in the vehicle. Limited use coverage offers a lower premium for driving below the mileage limits, typically 5,000 miles or less per year. Some classic car insurance limits driving to 1,000 miles per year.
Agreed Value Coverage
When purchasing classic car insurance, your vehicle undergoes an evaluation to ascertain its value. You and the insurance company agree to this specific valuation as the amount you will receive if your vehicle gets totaled in an accident. Not all policies use agreed-value coverage.
Actual Value Coverage
Very few classic car insurance policies offer actual value coverage. However, you should still know that if you see this in your potential policy, it refers to a depreciated value of your vehicle. Actual value uses Blue Book depreciation value and wear and tear when determining the valuation of a damaged or totaled classic car.
Stated Value Coverage
Stated value coverage seems like agreed value coverage until you read the fine print. With stated value coverage, you bring your insurance company legal documentation proving the value of your classic car. That’s the value you insure it for, but the insurer can choose the lesser of actual cash value or stated value if you file a claim.
Contact Sloan Insurance Agency Today for Classic Car Insurance
Let Sloan Insurance Agency help you insure your classic car. We serve Elmer, NJ, and the surrounding communities. Contact Sloan Insurance Agency today.