From their '57 Chevy to their '69 Pontiac GTO, collectorcar enthusiasts get revved up about their cars. While theymay not be nearly as excited about their insurance, it's importantto find them quality coverage at a good price.

Endorsing a collector car on a standard autopolicy may be easier for you, but opting for aspecialty policy is usually a better fit for thecollector car owner. A specialty policy can provide better valuefor the owner. For example, specialty carriers provide“agreed value protection,” which means that thecar is guaranteed to receive an exact value in the event of a totalloss, no matter the market fluctuations.

Related: An Agent's Guide to Insuring Collector Cars —Slideshow

What's more, specialty carriers provide lower rates based on howinfrequently collectors use these cars. Some carriers may alsoprovide added value for the customer, such as claims people who“get” collector cars, and flatbed towing in the case of abreakdown.

Agreed vs. stated value

Agreed value protection, also called an “agreed value policy,”means that a collector car is insured for a specific dollar amountthat the insured and carrier have agreed upon. The value is basedon the car's number of original parts and the quality workmanshipof modified parts. The owner of the vehicle will receive the agreedamount in the event the car is totaled, no matter the marketfluctuations.

In comparison, a “stated value policy” takes market valuefluctuations into account. For example, under a stated value policy(often used by standard auto carriers), a collector car may beinsured at the cash value of $20,000. But if the car is totaled inan accident, the car owner may only receive $15,000 because of adrop in market value.

Read related: “Collector car niche rolling on despite economy.”

Assess the value

One of your biggest challenges may be to accurately assess acar's value. A specialty carrier can help you determine what theagreed value should be. You'll just need to gather some of thefollowing information:

Identify whether it's a professionally restored original car, anun-restored original, or a “driver” car.:

• A professionally restored original has been restored to itsoriginal specifications yet still has the original engine and drivetrain. These cars demand a premium, especially if everything isdocumented.
• An un-restored original is a completely original car that hasthe original paint, interior, engine and drive train.
• A driver car, the most common collector car, is perfect for theenthusiast who can't afford a six-figure investment. It's stillcollectible but not worth as much as an original because of changesmade to the engine, interior and paint.

You need to understand whether or not modificationswarrant an increase in value by asking:

• What type of engine? Who built it? How much did theyinvest?
• What body modifications have they made? (chopped, channeled,sectioned, etc.)
• Who painted it? How much did they invest?
• Who did the interior work? Is it custom or factoryreplacement?
• What type of transmission and differential do they have? Howmuch did they invest in the drive train?

Adhere to specialtyguidelines

Most collector car owners “baby” their cars, driving theminfrequently, storing them in a secure garage and keeping anear-perfect maintenance record. Specialty carriers recognize thisand price their policies accordingly.

Read related: “Tapping into the collector and classic car market.”

However, as the agent, you need to make sure that the car owneris staying within the guidelines of the specialty underwritingrules. Here's a list of questions that can help you assess thissort of detail:

• How many miles do they drive each year?
• Is this car kept in a garage throughout the year when not inuse?
• Do they drive to and from work with it?

Become an enthusiast

Keep an eye on what's happening in the collector car world. Goto car shows and talk to people. While you don't need to be a “gearhead,” you do need to be able to talk like a “car guy.”

Most of all, have fun. Collector car guys are loyal andpassionate, so become part of the hobby and understand the people.If you get in good with a handful of enthusiasts and they are happywith your service, word will spread.

###

Rick Drewry is senior claims specialist,collector vehicle & motorcycle, at American Modern InsuranceGroup. He has been passionate about collector cars since hewas a kid, and has personally restored several automobiles. Rickcan be reached at [email protected].