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

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

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

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

From a value standpoint, a slightly modified car is going to bevalued less than an unrestored original car. However, a highlymodified car could bring a higher value depending on the keycomponents used in building the car and the quality of thecraftsmanship. Also, consider spare parts coverage if the insuredhas a lot of extra parts on hand. If the insurance company has asophisticated tiered modification program, your customer's ratesmay be impacted by the types of modifications. A barely legalstreet rod that has been souped-up to 650 horsepower with nitrousinjection and a blower will cost more to insure than one that onlyhas a deluxe interior and custom stereo set-up.

The value of any collector car or custom car is really aneducated guess. High-level customs are worth more just aftercompletion, but values tend to drop over the years. Your customershould lock in the current agreed value now to help protect theirinvestment. Realistically, such cars usually cost a lot moreto build than they are actually worth, but your customer shoulddocument all of the modifications in the event of a claim. Themileage allowance for such a car is minimal.

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

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