When it comes to insuring your cherished classic car, you might have several questions. Hagerty Car Insurance specializes in providing tailored coverage for classic and collector vehicles. Here, we address some frequently asked questions to help you understand why Hagerty could be the right choice for your prized possession.
Agreed Value vs. Stated Value: What’s the Difference with Hagerty?
Understanding the nuances between different types of insurance policies is crucial, especially when it concerns classic cars. Hagerty, a leader in classic car insurance, offers what’s known as Guaranteed Value coverage, which is essentially the same as an agreed value policy. This type of policy is designed to protect your investment fully.
With Hagerty’s Guaranteed Value policy, in the unfortunate event of a total loss covered by your insurance, you are guaranteed to receive the full insured amount of your vehicle. This amount is agreed upon when you take out the policy, reflecting the true value of your classic car, without depreciation. This includes all applicable sales taxes, ensuring no hidden costs reduce your payout.
On the other hand, a stated value policy, also sometimes referred to as “stated amount” or “maximum limit of liability,” operates differently. While it might seem similar, it actually favors the insurer. In a claim scenario, the insurance company reserves the right to pay you either the depreciated cash value of your vehicle at the time of the loss or the cost to repair or replace your vehicle – and they will always opt for the lower of these two figures. This can leave classic car owners significantly undercompensated, as the market value of classic cars often appreciates, not depreciates, over time. Choosing Hagerty’s agreed value ensures that you, the collector, are protected against such losses, receiving the full value you insured for.
How Does Hagerty Classic Car Insurance Differ from Regular Car Insurance?
Classic car insurance, especially from a specialist like Hagerty, is fundamentally different from standard, everyday car insurance. These differences are designed to cater to the unique needs and usage patterns of classic and collector car owners.
Lower Premiums Reflecting True Usage
One of the primary advantages of Hagerty car insurance is lower premiums. Hagerty understands that classic cars are not daily drivers. They are typically driven fewer miles, are meticulously maintained, and are handled with exceptional care. Because of this reduced risk profile, Hagerty can offer premiums that are, on average, 21% lower than those for daily driver insurance.
Standard car insurance policies often rate vehicles based on the assumption of daily use. This means your classic car might be unfairly rated as a high-mileage, regularly used vehicle, leading to inflated premiums. With Hagerty, your premium accurately reflects the limited and careful usage of your classic car, saving you money.
Guaranteed Value: Protecting Your Investment
As highlighted earlier, Hagerty’s Guaranteed Value coverage is a cornerstone benefit. Unlike regular car insurance that typically offers “actual cash value” or “stated value,” Hagerty works with you to establish a fair and accurate value for your classic car upfront. This agreed value is then guaranteed to be paid out in the event of a covered total loss.
Regular car insurance policies, with their depreciation models, can significantly undervalue classic vehicles at the time of a claim. This can result in a payout that doesn’t reflect the actual market value or the owner’s investment in the vehicle. Hagerty’s Guaranteed Value ensures that your payout accurately reflects your car’s worth, providing peace of mind and financial security.
Flexible Usage with No Fixed Mileage Limits
Hagerty policies offer flexible usage with no fixed mileage limits. Many standard car insurance policies, even those offering full coverage, may impose strict mileage and usage restrictions on classic cars. These restrictions are designed to limit the insurer’s risk, but they can also restrict how and when you can enjoy your classic car.
Hagerty understands that classic car owners enjoy their vehicles in various ways – from weekend drives to car shows and club events. Their policies are designed to accommodate this flexible usage without penalizing you with mileage restrictions. This freedom to enjoy your classic car without worrying about mileage limits is a significant advantage of Hagerty car insurance.
In conclusion, Hagerty car insurance offers specialized coverage designed specifically for classic and collector vehicles, setting it apart from regular car insurance. With benefits like lower premiums, Guaranteed Value payouts, and no fixed mileage limits, Hagerty provides tailored protection for your prized classic car. If you value your classic car and want insurance that truly understands its worth and usage, exploring Hagerty car insurance is a worthwhile step.
