Arkansas Insurance Options for Classic Cars

Arkansas classic car owners face two important considerations when insuring their vehicle.  One relates to the value of the car and the result of an adjuster’s opinion when issuing a claim check for repairs or replacement, and the other important consideration is the amount of insurance one should obtain for adequate liability coverage.

While there are no regulations placed on the amount of insurance you need to cover the value of your car, there are regulations in Arkansas relating to the liability section of your policy.  This part of your policy is designed to pay others if you cause injury or property damage in an accident due to negligence.  While there are minimum limits in Arkansas, these limits are likely inadequate for most classic car owners.  Operators of an automobile in Arkansas are required to maintain at least $25,000 in bodily injury coverage per person, per accident, and at least $50,000 total for one accident.  There is also a requirement for property damage liability coverage of $25,000.  It is important to consider higher limits for your classic car insurance policy so that you have adequate financial protection against claims that may be made in an accident caused by you.

Important decisions must also be made regarding the coverage that pays to repair or replace your classic car.  This coverage is typically referred to as “physical damage coverage” in an auto policy, and most often this coverage states that it will pay to repair or replace your damaged car based on the market value of the vehicle.  This could be problematic if you have a rare or highly customized classic car, as there may be very few comparable vehicles available to establish a market value.  To combat this problem, most classic car policies can be designed with an “agreed value coverage”.  This method establishes a value prior to any claims so that the insurance company knows the proper value for your car before any loss occurs.

While the value of your car may pose some unique challenges to proper insurance, you may also find some interesting opportunities to save money on your classic car insurance.  If you drive the car infrequently, you may be entitled to a deep discount on your insurance as there is less risk of accidents when your car is garaged.

Various add-on coverages are available to tailor the policy to the needs of a classic car owner such as spare-parts coverage, accessories coverage, and medical payments coverage at car shows.  These features are often unique to a classic car insurance policy.

Establishing an insurance policy for your classic car should be done carefully, and with the right insurance company.  Be sure to consider insurers that are rated highly by A.M. Best, with ratings of “A” or “A+”.  These indicate that an insurer is financially sound and has a good record of paying claims.  You should also make sure that your agent is familiar with classic car insurance policies, as these are different from a standard auto policy in many ways.