When it comes to insuring a classic car or an exotic vehicle, many owners assume their standard auto policy will do the trick. The truth? It won’t. Whether you’re the proud owner of a vintage Corvette or a sleek Lamborghini, these high-value cars require more specialized coverage than the average daily driver. At John Johnson Insurance Services, we’re here to break down what most owners don’t know—but absolutely should—about protecting these prized possessions.
1. Standard Auto Insurance Doesn’t Cut It
Classic and exotic vehicles aren’t just cars—they’re investments. Whether they’re appreciating assets or sentimental family heirlooms, you need coverage that reflects their true value. A traditional auto policy typically covers vehicles based on depreciated, “actual cash value,” which could leave you significantly underinsured in the event of a total loss.
2. You Need an Agreed Value Policy
One of the most critical components of insuring a collector car is selecting an agreed value policy. This allows you and the insurer to agree on the car’s value up front—often based on appraisals, documentation, and market data. If the vehicle is totaled or stolen, you receive the agreed-upon amount with no depreciation.
🛑 Pro Tip: Always re-evaluate the agreed value every couple of years as market prices for classic and exotic cars fluctuate.
3. Mileage Matters—A Lot
Many specialty insurers offer better rates for cars that are driven infrequently. These policies may come with annual mileage limits, so be honest about how often you take the car out. If it’s just for Sunday cruises or local shows, you could benefit from deep premium savings.
4. Usage Restrictions May Apply
Specialty policies often limit how and where you drive the vehicle. Some don’t allow for daily commuting or track use, while others may restrict driving to only certain times or events. Make sure you fully understand these terms—violating them could lead to a denied claim.
5. Storage Can Impact Premiums
Where you store your vehicle matters. A locked, climate-controlled garage can reduce your premium and is sometimes required for coverage. Outdoor storage or high-theft areas may lead to increased costs—or denial of coverage altogether.
6. Choose the Right Insurer
Not all insurance providers are created equal when it comes to classics or exotics. Look for companies (or brokers like us!) with experience in high-value vehicle coverage, and that understand the nuances of collector car markets. We work with top specialty carriers who know how to value, protect, and service these vehicles the right way.
7. Add-Ons Can Make a Big Difference
Depending on your vehicle and usage, consider adding:
- Spare parts coverage (valuable for restorations)
- Roadside assistance for specialty towing
- Trip interruption coverage for shows or events
- Coverage during transit (if the vehicle is transported frequently)
8. Documentation is Your Best Friend
Keep records of everything: appraisals, restoration receipts, photos, and maintenance logs. Not only do these help in claims situations, but they can also help prove the vehicle’s value over time.
Contact John Johnson Insurance Services!
At John Johnson Insurance Services, we believe that if you’re investing in a high-end vehicle, you deserve high-end protection. Whether it’s classic American muscle, a pristine European roadster, or a cutting-edge supercar, we’ll help you build a policy as unique as your car.
If you or someone you know is looking for a talented group of insurance providers in Budd Lake, New Jersey, contact our office at (908) 747-4282!