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Insurance Alternatives For Your Corvette

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When the Corvette you own is driven only occasionally for pleasure drives, club events, special excursions, maybe 1,000 or certainly under 5,000 miles a year, not used for business, etc., it is time to enroll them in a "collector car" insurance program.

If you are insuring your Corvette under a standard insurance policy, you should expect problems with claims. Be prepared to deal with a claims adjuster who doesn't understand why using a repair shop of your choice or using original parts is extremely important. Standard auto insurance policies do not guarantee a value for your car at the time of loss. If you wouldn't take your Corvette to just any old shop for service, the same is true for its insurance.
Specialty Brokers
There are a few specialty insurance brokers who provide automobile insurance policies designed to cover collectible automobiles for pleasure driving only. If you qualify, their premiums are usually a fraction of the cost of a standard insurance policy. Insurance company underwriting guidelines may include driving usage, special care for the car (such as how it is garaged), good driving records, and few if any youthful drivers. A few brokers market polices nationwide, often including coverage for spare parts and towing.

Most collectible automobiles have stable values and slowly appreciate over time. Because the values are stable, an "Agreed Value" insurance policy should be obtained to protect your collectible automobiles. Under an "Agreed Value" policy, if your car is stolen or totaled, you will receive the "Agreed Value" listed in writing on your auto policy. Ninety-five per cent of all standard insurance companies do not offer an "Agreed Value" policy.
Actual Cash Value (ACV)
This form of coverage is typically provided by standard auto policies. The insurance company claims adjuster ultimately decides what your collector car is worth at the time of the loss. While you may have some input, if you do not agree with the claims adjuster, the insurance company claims adjuster decides the final claims settlement. If you do not agree with the claims settlement, you may have no alternative but to seek legal action, or, if specified in the policy, arbitration.
Stated Amount or Stated Value
This form of policy is frequently and easily misunderstood. It is often used on collector car policies. Most insurance agents typically represent it as being the same as "Agreed Amount." It is not! The "Stated Amount" form states the insurance company will pay the lesser of:

1. The Stated Amount or
2. The cost to repair the covered auto not to exceed the "Stated Amount" or
3. The "Actual Cash Value"

The "Stated Amount" helps determine the premium cost. It does not guarantee you a settlement amount that reflects the value of the car when a loss occurs. The "Actual Cash Value" language allows the claims adjuster to settle your loss for an amount less than the "Stated Amount." Most insurance agents are unaware of this detail. These agents are unaware of the actual policy language and will insist if your collector car is stolen or totaled, you will receive the stated value.