RIAs can add another item to their repertory to start the New Year: Advising clients who are antique and collector car hobbyists and investors about how to choose the right automobile insurance.
Antique and collector cars are both a fun hobby and an excellent investment. But like any other vehicle, they require classic car insurance and proper coverage to protect against loss. According to a Dec. 31 statement by AutomobileInsurance.net, an Internet service, differences exist between coverage for these unique cars versus average vehicles and there are options specifically designed for antique and classic cars.
The trick to choosing the right vehicle insurance coverage, according to the service, is to consider how the vehicle is used. Many specialty policies have specific regulations that are in line with how the car is operated. Someone who decides to buy a traditional policy will be able to choose a basic level or just a liability option.
However, the liability coverage provides coverage only for the other party if the owner is involved in an at-fault accident. The damages to the antique or classic car will not be covered as liability coverage is a minimal requirement in most states that does not cover property damage.
The most complete automobile insurance coverage is typically referred to as comprehensive coverage. This will generally have higher rates but also more extensive levels of coverage, meaning the car will usually be covered regardless of the claim, from rock chips to full accidents.
