Last week, we told you about the policies and services that specialty insurers can offer collector car enthusiasts. Now we take a look at some of real-life examples of the cars that are being insured and the questions and concerns that agents and brokers should be aware of when working with these specific types of customers. By being knowledgable and offering the right policy to the right customer, you ensure a strong relationship between the agent and policyholder.

Classic Collector Car Insurance

Let's start by looking at a typical classic car. From an insurance standpoint, it's all about how the car is used. Most collector car policies do not allow driving back and forth to work, for good reason. Make sure your customer keeps the car in a locked garage when not in use. Another issue is miles driven. Instead of a “one size fits all” approach, some insurers offer tiered mileage plans which can be tailored to the owner's needs. A good collector car insurer can also help the owner determine the car's value.

Restored Car Collector Car Insurance

If your customer has a classic car they don't use much, such as entering it one or two shows a year and maybe the local cruise in, they would benefit from a tiered mileage plan. This will get them the lowest premium and match their driving style.

Street Rod Classic Car Collector

If your customer likes to drive their collector car to lots of shows, they'll need a higher mileage allowance, plus trip interruption and flat bed towing coverage.

Hot Rod Classic Car Collector

From a value standpoint, a slightly modified car is going to be valued less than an unrestored original car. However, a highly modified car could bring a higher value depending on the key components used in building the car and the quality of the craftsmanship. Also, consider spare parts coverage if the insured has a lot of extra parts on hand. If the insurance company has a sophisticated tiered modification program, your customer's rates may be impacted by the types of modifications. A barely legal street rod that has been souped-up to 650 horsepower with nitrous injection and a blower will cost more to insure than one that only has a deluxe interior and custom stereo set-up.

Trailer Queen Classic Car Collector

The value of any collector car or custom car is really an educated guess. High-level customs are worth more just after completion, but values tend to drop over the years. Your customer should lock in the current agreed value now to help protect their investment. Realistically, such cars usually cost a lot more to build than they are actually worth, but your customer should document all of the modifications in the event of a claim. The mileage allowance for such a car is minimal.

Restoration Car Classic Car Collector

A car that is being restored can be insured for its current stated value during successive stages of the restoration process. Once the car is 80 percent complete, it can be insured for its agreed value.

Tractor classic car collector

How'd that picture get in here? To illustrate the point that not all collector vehicles are cars. The misperception that a collector vehicle must conform to a narrow definition can lead consumers to purchase sub-par coverage (at inflated prices), or to even go uninsured altogether. If it has wheels and a motor, chances are someone collects it. If your customer has a classic tractor, military vehicle (tanks, Jeeps, etc.), motorcycle, or even fire engine, they'll need insurance from a carrier with a broad appetite for virtually any classic vehicle, including kit cars, racing cars, replicas, and more.

Special Reports /

An Agent's Guide to Insuring Classic and Collector Cars &mdash; Slideshow

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An Agent's Guide to Insuring Classic and Collector Cars — Slideshow