Buying Classic Car Insurance in Arizona

A classic car can pose a challenge when it comes to insurance coverage due to the specialized nature of the car, especially if it is rare or customized.  If you don’t look at a specialty classic car policy,  you could risk missing the true value of your classic car due to a misguided appraiser or insurance adjuster when a claim occurs.

If you are a classic car owner, you may be familiar with the careful research required to replace parts on that vehicle because of its rare nature.  A classic car insurance policy is no different; be prepared to do some research into your insurance options before buying your insurance policy.  Not all agents are familiar with the needs of a classic car owner so make sure that you choose an agent that is familiar with this type of insurance product.

A standard Arizona auto insurance policy for your classic car may be what you are considering, but these packaged policies generally lack the specialized coverage you need if you own a true classic, antique or vintage model car.

One of your options when establishing the value your classic car for insurance purposes is called “actual cash value” coverage.  This is very similar to the method used in a standard auto policy, and it is based on an appraiser’s opinion of the value of your car after an accident has occurred, often including depreciation.  This works reasonably well for average daily driver cars, but for a classic car this method could pose a problem, particularly when a car has had a high level of customization.  The value of those customizations may be lost on the appraiser who will be looking for simple things such as year, make, model and mileage.

In order to avoid this problem, insurers that sell policies in Arizona have offered an alternative method of valuing your classic car called Agreed Value Coverage.  These policies present an opportunity for the insurer and the insured to reach an agreed figure on the value of the car before any claim takes place, rather than having to negotiate with an andjuster at claims time.

There are many opportunities to save money on a classic car insurance policy, so be sure to ask about discounts while conducting your insurance research.  For example, if your classic car is stored more often than it is driven, you may qualify for a low mileage discount with some insurance companies.

The value of your classic car is only one important component of your insurance coverage considerations.  You must also consider the liability coverage component, which is designed to pay others on your behalf if you cause an accident that involves injuries or property damage to others.  In Arizona, there are minimum limits that you must maintain on any automobile, and classic cars are no different in this regard.

Arizona’s financial responsibility laws require at least $15,000 in liability coverage per person, per accident, and $30,000 total for each accident.  There is also a requirement for property damage of at least $10,000 in coverage.  These figures are only a minimum requirement however, and in most cases a classic car owner will want to maintain much higher limits of liability to maintain adequate financial protection against claims.

Be sure to discuss your insurance needs with an agent that knows classic car insurance policies well and be sure that you have adequate financial protection for your car, and for your peace of mind.


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