Standard Is As Standard Does
Depending on the type of car you own and your driving history of tickets and accidents, you are likely insured in the standard or preferred auto market. Standard and Preferred markets are nearly identical. They both cover typical car owners, driving typical cars in typical uses. Typical or average cars and operators allow insurance companies to use a comfortable set of assumptions on what to expect for the number or losses and the expense of repairing the losses so that premiums can be developed and charged. But what if you own a classic or antique auto? Well the above assumptions can be tossed out because you're in a special coverage situation.
You may have to reach out to the specialty market for protection of your special auto. A classic auto is commonly considered to be an auto around 15 to 25 years old and, naturally, has appreciated in value. Specialty coverage is necessary because standard auto coverage rates are based upon a car losing value each year due to aging and normal vehicle use. The owner of a classic or antique car needs coverage for a vehicle that maintains or increases in value. Further, such owners have to deal with a carrier that has expertise in handling losses to their collectible cars as well as being experienced in making the necessary considerations to charge the right premium.
Rating And Eligibility Considerations
Specialty car insurers typically base their rates on elements such as:
- car's current value (often established by appraisal)
- any special design or features
- use (exhibition, touring, parade)
- availability of storage in a locked garage
- owner's age (no youthful drivers)
- whether spare part coverage is included
- availability of another car for normal vehicle use
- whether the car's coverage includes automatic increases to account for inflation
If you have a special auto, talk to your insurance professional for advice. He or she shares your concern for having the right type of coverage.