Vintage Porsche sports car antique

Custom Cars Need Custom Insurance Solutions

Latest posts by Mike Fenstemacher (see all)

If you’re someone who enjoys getting more out of their car than just getting to your destination, you need more than a standard auto policy.  A high performance, antique, or custom car requires a specialized auto policy.

An automobile policy is designed to provide you a level of protection against property, liability and medical costs if you are involved in an accident. Optional custom parts and equipment coverage ensure that your customized details are covered too.

Classic and Antique Vehicles

Since classic and antique vehicles are all so different, your insurance coverage will be specific to your vehicle and how often you plan to use it. A typical classic car insurance policy includes the following:

  • Agreed value coverage—This coverage pays for the car’s full-insured value with no depreciation in the event of a total loss, less your deductible.
  • Inflation guard—This coverage is intended to compensate for how classic cars increase in value over time. The policy increases the vehicle’s value quarterly.
  • Flexible usage—This coverage offers the ability to drive the vehicle up to 2,500 or 5,000 miles annually. It is not limited to “parades only.”

High Performance Cars

High performance cars can be challenging insurance placements, depending on the vehicle and the owner’s experience with operating such cars. Working with an expert is essential to finding the right coverage.

Custom Parts and Equipment Coverage

A basic auto policy’s collision or comprehensive policy provides insurance only for the original equipment included by the manufacturer. If your vehicle has special equipment or permanently installed custom parts that alter its appearance or performance, optional custom parts and equipment coverage may be for you.

Special equipment typically includes the following:

  • Customized paint or decals
  • Customized wheels, spoilers, suspensions, or performance-related equipment
  • Stereo or television equipment
  • Running boards, roll bars or brush bars
  • Undercarriage lighting
  • Bed liners, camper shells, and trailer hitches

Within the limits that you select in your policy, custom parts and equipment coverage reimburses you for the actual cash value, the declared value, or the actual cost to repair—whichever is lowest.

Insurance companies analyze a variety of factors when determining your auto insurance premium. The more specialized the car, the more specialized the policy needs to be to ensure you have the right coverage for your needs.

As always, it’s important to work with a trusted adviser who understands the complexities, such as the advisers at Kapnick. For assistance developing the right auto policy for your high performance, custom, or antique car, feel free to reach out at [email protected] or 888.263.4656.

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