Insuring Your Classic Car in Nebraska

Classic car owners in Nebraska should consider two important aspects of coverage when it comes to their auto insurance policy.  A classic car insurance policy will typically be based on an agreed figure of value for the car when the policy is written.  This may require a professional appraisal, but it is necessary due the unique characteristics of classic cars.  The other important consideration relates to liability coverage and the amount of insurance one should obtain for financial protection against claims for negligence.

Nebraska has financial responsibility laws that govern how much insurance you are required to maintain on the vehicle.  There are no regulations with respect to physical damage coverage on your own vehicle, but there are minimum limits required for liability insurance coverage.  In Nebraska you must maintain at least $25,000 per person, per accident, and $50,000 total per accident.  You are also required to carry at least $25,000 in property damage liability.  These limits are merely the minimums however and are not designed to provide adequate protection to you.  In most cases, much higher liability limits are advisable in order to fully protect your financial assets.  If you find yourself in an accident resulting in injury claims of several hundreds of thousands of dollars, inadequate insurance could leave you paying for a large portion of the claim out of pocket.

As indicated, most classic car policies have an “agreed value” provision.  This is in contrast to most standard auto insurance policies.  Under those policies, the section called “physical damage coverage” states that claims will be paid based on the market value of repairs and/or replacement.  For repairs this could be based on pricing for OEM parts or aftermarket parts, neither of which really apply to most classic cars.  Total losses are based on blue-book values. While in some cases this can be helpful for a classic car, but in many cases the blue-book values are difficult to determine accurately. The agreed value provision eliminates this valuation conundrum, particularly if your car is very unique, very old or rare.  Customizations also make the value difficult to determine.

Classic car insurance policies in Nebraska can also present great opportunities to save money.  If your classic car is frequently stored rather than driven, you can obtain a discount for low mileage.  Insurers recognize that a car that is primarily garaged for show poses a much lower risk than cars that are on the road.

You may also want to customize your policy to fit the unique characteristics of your classic car.  For example, you may want to add spare-parts coverage, accessories coverage, or even medical payments coverage at car shows.

Make your insurance decisions wisely and be sure to discuss your needs with a qualified agent with experience in classic car policies.  Be careful to select an insurance carrier that is highly rated by A.M. Best company, with ratings of “A” or “A+” which is an indication that the insurer is financially stable and able to pay their claims.

The Phoenix Insurance specializes in classic car insurance. We’re car fanatics and know exactly what it means to want to protect your passion. Give us a call, we can help protect what moves you.