How to Get Classic Corvette Insurance
It goes without saying that if you own a Corvette or other classic car then it's near and dear to your heart. The investment of time, care and labor is substantial and needs to be protected and insured. But it's important to know the differences between standard car insurance and those who specialize in classic car insurance. Regardless of the company, if you're looking at Corvettes for sale then a good insurance policy, specializing in classic autos is a must. The best way to find the right company is by doing research on both independent and commercial companies.
Larger car insurance companies have been around long enough to provide safe and reliable coverage. These companies allow coverage on both your classic car and any other vehicle you own. Finding one with a good reputation and quality service is key. However, commercial insurance companies are not always the best option for insuring a classic car due to their high prices and limited insurance coverage.
Specialized companies, on the other hand, function in different ways and can be easier on the pocket. Some even insure only a specific type of classic car such as Classic Corvettes. This means that you would have to seek another company to insure your other vehicle. It is important to do research on the independent company in order to determine their reputation and how reliable the insurance is.
Regardless of the type of company you are working with, there are three main types of auto insurance coverage. Two of the three types are recommended for collector cars and these include Stated Value coverage and Agreed Value coverage.
Stated Value Insurance
Stated Value insurance allows the owner to state the value to the car which offers some leniency. In fact, you can provide an amount that is over the depreciated value of the classic car. The disadvantage with this type of collector car insurance is that your Corvette can ultimately depreciate which can create a situation where you won't be fully covered for the stated amount. With classic Corvettes this is less of a concern. Typically the value of classics will hold steady or (hopefully) increase with time. The depreciation issue relates more to late model Corvettes. Stated Value insurance also comes with deductibles.
Agreed Value Insurance
Many Corvette and classic car owners choose to have Agreed Value insurance coverage because it allows your vehicle to be fully covered; up to the agreed value of the car. This type of insurance does not have any deductibles nor does your car lose its value under the insurance plan. With Agreed Value insurance, you will have certain limitations including mileage restrictions, age restrictions, the requirement of a garage, and the requirement of an extra vehicle. Keep in mind the discussion earlier about classic Corvettes typically not depreciating, but instead gaining in value. If you go with an Agreed Value insurance policy be sure to consider appreciation in your agreed upon value. Either set it high so your classic will appreciate into the coverage, or revisit your policy every couple of years to be sure the dollar amount that you're covered for still reflects the value of the car. As your Corvette appreciates, so should your insurance coverage. Don't be the guy who never reviews his policy, then 10 years later gets in an accident only to find his $25,000 Corvette is only covered for the $18,000 it was worth when he set up the policy.
Placing Value on a Classic Car
Setting a realistic value of your Corvette is especially important for classic auto insurance. If the value is too low you won't be properly covered in the case of an accident. If the value is too high you'll over pay on insurance premiums. Determining this value is a long process that requires a lot of research, but it's worth it...and frankly necessary. The more original the car is, the easier it is to place a value on it due to the availability of price guides. As Corvettes and other classic cars get modified or even restored, it becomes more difficult to figure out (or more to the point, prove to the insurance company) the actual value of the car. As a result, the insurance companies will require appraisals and inspections to determine the value. They will also look at necessary documents and receipts on purchases for parts. Most insurance companies won't care that you had a $1200 NOS rear bumper if a reproduction version is available for half the cost. Keep those receipts to prove what level of restoration you performed and exactly what it cost to do it.
It is always important to review your collector car insurance coverage periodically. Added parts on a car (may) increase the value which means that the coverage should be increased as well. Classic cars, and especially classic Corvettes are unique vehicles and difficult if not impossible to replace. They are also a hefty investment for many owners which means that having the right insurance coverage for the car is critical. Enjoy driving your Corvette that much more by knowing that you're properly insured!