What qualifies as a collector car, how is the car insured, and the restrictions that may apply.

Why you may need a special policy for your classic car.

What is collector car insurance?  It is an auto insurance policy that is specifically designed to cover cars that are not used for everyday transportation and are considered a collector item or a hobby – like classic car insurance.

Collector car insurance is specialty insurance and it is not offered by all companies.  If your current insurance company does not offer this specialty insurance, you may have to seek out coverage with a company that specializes in this type of policy.

What Qualifies as a Collector Car?

Muscle cars, antiques, imports, rare vehicles and street rods all make up part of the list of cars that can be considered for collector car insurance. The vehicles that people pay beaucoup bucks for because they are rare or that they spent years restoring are the most frequently insured vehicles under this type of policy.

Because the term ‘collector car’ can mean so many different things to different people, it is best to contact your insurance company for more information as to whether your car would qualify as a collector car.

Coverage for Collector Cars

Collector cars are not insured according to a certain value that is found in a book.  Collector cars can be rare and the value of the vehicle is generally not something that can be determined to be the same as every other vehicle that was made in the same time period, especially of that time period was a long time ago.

Instead collector car insurance policies use a stated value or an agreed value to determine the worth of the vehicle in the event of an accident.  Stated value is the value of the vehicle that is determined at the beginning of the policy minus any depreciation during the course of the policy up to the time of the accident.

Agreed value is the more popular method of insuring with collector car policies, at the beginning of the policy the person buying the policy and the insurance company “agree” on the value of the vehicle at the time the policy is written.  If there is a car accident and the agreed value was $53,000, then $53,000 is what is paid if the car is totaled, there is no depreciation with this type of value.

Regulating Collector Car Use

How you use your collector car is strictly regulated by the insurance company. This is why they are able to keep the lower rates that you pay for your collector car insurance down.  Driving restrictions include not being able to use the car for everyday use or commuting to work.   More specifically, your insurance company may place an annual mileage limit on your vehicle, usually around 2500 miles a year.

How you store your collector car is also important. You must keep it in an enclosed garage or storage facility that has a lock on it to keep it safe. You also cannot leave it out on the street or in parking lots for long periods of time when you drive it around.  This is to protect the car from theft or vandalism.

In addition, to make sure that the insurance company has a lower chance of having to pay out on a claim they allow only good drivers to start collector car policies with them.  The driver of the collector car has to have been driving for a minimum amount of years and can only have so many at-fault accident and tickets.

Knowing what car insurance is, understanding different coverages, using local agents, and the internet to search for auto insurance.

Looking for car insurance can be a pain - but it doesn't have to be.

Looking for car insurance can be a frustrating process.  You are looking for something that is not tangible (you can’t touch it), you are being forced to buy it (by the state), it can be expensive, and you may not understand what the insurance salesman is telling you. Not exactly a walk in the park.

So where exactly do you start with the whole process?

Understanding Car Insurance First

Before you start the car insurance search, it is in your best interest that you understand what you are looking for.  You can start your education by checking out our car insurance definitions.

Learn the insurance lingo and know what an agent means when they say that the policy has 100/300/50 limits of liability coverage or what rental car coverage is.  If you don’t understand what they are talking about, don’t be afraid to ask.  It is better that you understand what you are buying and that it is a right fit instead of blindly buying something.

Don’t automatically buy the policy with the cheapest rates.  This usually means that you are buying the cheapest coverage as well. It might not provide you with enough coverage if you were in an accident.

For example, when we talked about the 100/300/50 liability limits above, that is the coverage available to cover the damages for the other person if you were to cause an accident.  The 100 is actually $100,000 in coverage for bodily injury (per person) and the 300 is the $300,000 limit that your insurance company will pay for all injuries to the other parties in the accident.  Finally, the 50 is the $50,000 limit that your insurance company will pay up to for damages to property caused by you in the accident.

So if you were to buy a cheap policy because the price was lower and the policy only had 25/50/25 liability limits, if you hit a person that was driving almost any new car out there right now, your $25,000 in property damage coverage would probably not cover the damages.  This means that you are left paying the difference out of your own pocket.

Also by knowing what you are looking for and what is available for insurance coverage, you can make sure that you are comparing policies with the same coverage.  This way you don’t mistake a lower priced policy as being the best value, when it is only the lower price because it offers less coverage.

Local Insurance Search

One way to search for car insurance is through local agents in your area.  This will help you in three ways.  First, they are in your area and you can physically go to their office and talk to them.  This is extremely helpful when you have been in a car accident and have someone there in town on your side instead of just a voice on the other end of the phone.

Second, a local agent knows the laws and coverage requirements for your state.  They will be able to make sure that you are purchasing at least the state minimums and have everything in place for your state.

Third, when you get your first quote for your car insurance a local agent will sit down with you and explain all of the coverages and answer any questions you may have.  They can also get you a quote immediately in writing so that as you go and get your other quotes, you have something in hand to compare it to.

You can also contact an insurance company through a toll free number that they offer on their commercials or print ads.  The phone numbers offer an insurance agent to talk to on the phone that can answer your questions. Bear in mind, these agents are not in your area to offer you local support and assistance.

Using the Internet to Search for Car Insurance

The internet is a great way to conduct your car insurance search.  Quotes can be obtained on your computer screen and you don’t have the pressure of an agent wanting to make a sale.  You also don’t have an agent there to answer any questions you may have or to explain any of the coverages.

We recommend searching for auto insurance through the internet first. It’s faster than calling a bunch of phone numbers, it lets the agents come to you (if you use a quote service like our above quote form), and it’s less hassle than keeping up with company websites or phone numbers.

The minimum auto insurance required for California, reporting your coverage to the DMV, and penalties for non-compliance.

What you need to know when cruising the CA streets.

California car insurance is strictly monitored by the state to make sure that all of its drivers are protected from damage caused by others.

They require minimum insurance to be in place on all vehicles on the road and cars that are not being driven must be registered with the state as in “non-use” or “non-operational” if they do not have insurance in place.  Cars that are being driven without insurance and are not registered as not being used are subject to penalties.

Minimum Insurance Requirements in California

The state of California requires that all of its drivers carry at least liability insurance.  To qualify as acceptable insurance coverage the liability limits have to be no lower than $15,000 in liability coverage for a single person’s injury and $30,000 total for all injuries.  The liability coverage for property damage has to be at least $5,000.

If you are not able to afford liability insurance and still need to drive instead of taking public transportation the state of California does offer a low cost auto insurance that you may be able to qualify for.  For more information on this program visit the website for California Low Cost Automobile Insurance Program at: www.aipso.com/lc

Coverage Reporting In CA

California car insurance policies are required to be reported to the Department of Motor Vehicle electronically by your insurance company.  This is not just something that California asks of the insurance companies that write in their state, it is actually a state law that was put into place so that the state could track their drivers.  It helps the state make sure that if someone is out on the road driving that they have insurance on their vehicle.  They also require drivers in their state to provide proof of valid insurance coverage when they renew the vehicle registration on their vehicle.

Insurance companies are also to electronically report to the Department of Motor Vehicles when an insurance policy has been cancelled.  Once they notify the DMV, the driver of the vehicle has 45 days to report the new insurance that was purchased to replace the cancelled policy.

Penalties for No Insurance in California

If you do not replace cancelled insurance within 45 days, get insurance on a new vehicle within 30 days or California finds that the proof of California car insurance that you provided was not true – they will suspend your vehicle registration.

To get your vehicle unsuspended you will have to provide proof that you placed insurance valid coverage and pay the reinstatement fee.  If your vehicle remains suspended you can get a ticket and could even have your vehicle impounded.  In the worst case scenario, if you get into an accident you will have to pay the liability damages out of your own pocket.

For more information on California auto insurance, contact your local California insurance agent or visit the California Department of Motor Vehicles website at: www.dmv.ca.gov

Finding car insurance deals by purchasing multiple insurance, getting group discounts, being a good driver and buying insurance directly.

When you just need a better price - try these tips.

Finding a sale on something that you had to purchase anyway is a great feeling.  Unfortunately, finding a sale in the world of car insurance never happens.  But, this doesn’t mean that you can’t find some great deals on your premiums in other ways.

Multi-Everything Deals

Insurance companies like it when you keep everything you need insured all together with their company.  To encourage this they offer multi-line discounts, in other words, they give you car insurance deals for agreeing to insure other items with them also.

The most common of these discounts are offered for insuring two vehicles together on the same policy (multi-car discount) or placing homeowners insurance with the same company that has your auto insurance.  Some companies even offer discounts for adding your boat, motorcycle or recreational vehicle with them as well.

Group Insurance Deals

Most people know that employers offer health insurance to their employees, but few know that some even offer a discount on their home and auto insurance as well.  The discount is usually through a specific insurance company that is offering a group discount to your employer.

These group car insurance deals aren’t just exclusive to an employer either.  You can possibly qualify for one of these deals by having a membership to certain large warehouse stores, credit unions, athletic clubs and whatever other group that has made a deal with an insurance company to offer its members a deal on their premiums.

To find out more ask the insurance company that you are getting a quote through if they offer any group deals. They may be able to give you a list of participating groups.  Also keep an eye out for advertisements offering this discount with the different groups that you belong to.

Car insurance companies like good drivers.  They like them because they can keep gathering the premiums and only have to pay out on small, if any claims at all.  Being a good driver also qualifies you for one or multiple car insurance deals with your premium.

Get a Deal by Passing on the Agent

Agents live off of the commission that they make on the insurance that they sell to you.  This is why they are always interested in trying to get you more coverage when you ask them for a quote. In general, the more coverage that they sell to you the higher their commission is.

Passing on an agent and buying an insurance policy directly from an insurance company either on the phone or online, can get you a deal on your insurance.  How?  Because in most cases you won’t be paying that extra percentage that goes to paying the agents commission.  The savings can range from 10%+ on your policy. Again, the savings doesn’t always happen, but it’s something to consider.

A word of advice: if you plan on going this route to get a car insurance deal be ready to be going at it alone.  The 10%+ that you pay for an agent also buys you the experience and assistance that the agent can offer you.

How to file an auto insurance claim, what the claims adjuster does and how you’re compensated in an auto insurance claim.

Your adjuster is never your agent.

It’s the proverbial good news and bad news situation. The bad news is you caught a bad piece of black ice on the freeway and took out a speed limit sign.

Everyone in the car is OK, but your driver’s side door is toast. After a tow back to town, you remember the good news: you have full coverage auto insurance.

But now what do you do?

Starting an Auto Insurance Claim

Given that if it weren’t for claims there wouldn’t be any point to insurance, the claims process itself is nevertheless often overshadowed by constant talk of premiums, discounts and the latest marketing campaigns. Agents are salespeople. When it comes to claims you’ll find many of them know shockingly little about the subject.

Nevertheless, often times your agent is who you contact to start the claim process. Larger insurance companies have a dedicated call center devoted entirely to claims. If yours is one of them, you need to call that number. If unsure, call your agent – he or she will be able to point you in the right direction.

When filing your claim, provide as much specific information as you can. Among other things, you’ll be asked when and where the accident occurred, if any other vehicles were involved, if there were any injuries, if any law enforcement agency responded, and if any citations were issued.

You’ll probably notice on the back your insurance card an admonishment NOT to admit blame to law enforcement in an accident situation. There’s a reason for this. For one, you may not be at fault even if you think you are. For another such statements tend to find their way into police reports, making them much more difficult to contest later.

The Claims Adjuster

Your claim will be handled by an insurance specialist called an adjuster. An insurance claims adjuster is either an insurance company employee or a third-party contractor trained to assess the damage caused in an accident. That way the insurance company can reimburse you in such a manner that you neither gain nor lose financially because of the accident. This concept is called indemnification. It’s a central philosophy behind all insurance, not just auto insurance.

An auto insurance claims adjuster is usually local and has good working relationships with auto body repair shops in your area. Indeed, it’s not unusual to see auto claims adjusters who have prior auto body repair experience in their own right. This is particularly important if you’re unsure where to get your car fixed. The adjuster will know. Take his advice; it’s definitely not in his interest to steer you towards some shady outfit.

A claims adjuster is never an agent. In fact, once a claim is filed your agent may very well be out of the loop on its status. While the claim remains open, keep in touch with your adjuster instead.

Collecting on Your Claim

Once the adjuster looks over your vehicle, he or she determines how much it’ll cost to fix it. Then the auto body repair shop goes to work. In a full coverage situation you may pay the deductible directly to the repair shop while the insurance company pays them directly for the rest. If your car is “totaled,” you may get a cash settlement instead.

Unless you’re in a no fault state, if your car was damaged in an accident in which another party was found at fault, the process is much the same apart from the fact you’ll be working with the other guy’s insurance claims adjuster.

Also before the claim is closed be sure to inquire about any secondary coverages you may have, such as for towing or rental reimbursement. If the adjuster doesn’t have the answer to these questions, your agent certainly will.

It’s possible to hire an outside, independent adjuster to get a second opinion, however this is not commonly seen in an auto insurance claim situation. It’s an added expense to you, and of little benefit unless there’s a serious dispute in a major accident.