Classic Car Insurance Companies: Who to Consider…

In comparison to regular insurers, you can usually get much better deals on your classic auto insurance through specialist companies. A few of the top companies for insuring a classic car include:

• Hagerty
• American Collectors
• Grundy
• J.C. Taylor

If you do a search on the internet for each one of these companies, you can go visit their websites and read more about them to see what they specifically offer as far as coverage goes. I am not in the position to recommend one over the other’s because I do not personally own a classic car – so make sure that you do your own research and find out which one is best.

What Type of Coverage Should You Get? Recommended: Fully Comprehensive

It is all up to you when deciding how much coverage you are going to get for your classic car. Most people end up getting fully comprehensive coverage for it because they cherish their classic autos and really put a lot of work into making sure that they look good and drive smoothly. Although some classic and antique car insurance quotes may be high priced, you can always shop around to see which place offers a rate that is most affordable.

How to Get a More Reasonable Premium for Your Classic Cars

1. Security

There are some pretty straightforward things that you can do to save money on a premium for your classic vehicle. One very easy thing that you can do is to store your classic auto in a protected garage when you are not driving it. Insurers usually want to make sure that you have taken the time to set up good security as well for your vehicle so that nobody steals it or vandalizes it without being held accountable. Most classic autos can be modified and fit with better security than what they already have.

2. Seasonal driving

Another thing that you can do get a cheaper insurance rate is to only drive it during a few months out of the year. If you drive your classic all year, you will have to pay for insurance coverage for the full year. However, if you only drive your vehicle during the summer months of June, July, and August, you can buy some seasonal coverage so that you don’t have to pay for the full year’s worth of insurance. Always check with your insurer to find out more ways in which you can save money and get the cheapest classic car insurance policy available.

What happens if my car is totaled and I still owe my loss payee money?

If you still owe your lender money, but your vehicle is totaled, hopefully you were smart enough to follow the guidelines and purchase adequate insurance. If you did not purchase enough insurance, you may have to pay for all damages out of your own pocket, which can get ugly. The first thing you should always do whenever purchasing a new vehicle and dealing with a lender is to make sure you have enough insurance coverage.

Individuals that did not purchase what’s known as “gap insurance” are going to have to pay the difference (between the value of the vehicle and the unpaid loan balance) out-of-pocket if their car is totaled. For this reason, it is always recommended that you get an insurance policy that will have your back should you be unlucky enough to ever have your vehicle totaled in an accident.

Will my insurance company pay me or my loss payee?

It is important to know who is going to be the primary recipient of money from your insurance company following an accident. In many cases, the loss payee (also commonly known as the “car insurance lien holder”) will be the one who directly receives the money from your insurer. It all depends on the type of contract that you entered though, sometimes you may be the primary recipient of the money if you and your lender have a different agreement.

For a hypothetical example, let’s say that you owned a vehicle valued at $16,000 that was unpaid. If it is brand new, it still likely is close to full value at $16,000 – so if it is damaged and you have enough insurance, you will be fully reimbursed for the $16,000 (you will likely need gap, comprehensive, and collision coverage). Anyways, if you totaled your $16,000 vehicle and your loss payee is the one receiving the insurance reimbursement, they will be given the money and you will be credited for what you have been given.

If you still owed $4,000 on your vehicle – the loss payee would initially pay off the remaining $12,000 on your account before they send you the $4,000. So you may have to wait extra time for the check to go through and be issued and processed in your bank account.

Should I add my lease company as a loss payee?

If you are leasing a vehicle, you may not be given a choice as to whether you should list the company providing you with the lease as a “loss payee.” Sometimes you may be required by your lease company to list them as a loss payee because you are not yet the rightful owner of the vehicle.

The reason that they may contractually demand to be listed as the payee in the event of a loss is because they want to make sure they get all of the facts straight and collect what they deserve from the insurance company before you get your fair share of the money. Technically speaking, insurance can get quite complicated because the lease company can actually be dragged into certain claims and settlements. For this reason, most will require that you list them on your policy.

Isn’t it up to me to decide whether I include my loan lender as a loss payee?

Most of the time it is NOT up to you to make a decision regarding the loss payee. Why isn’t it up to you? The reason that it isn’t up to you is because you don’t have enough money to pay off your vehicle. Since you are the person receiving money to help make payments, the company that is lending you the money deserves to get paid before you do.

Hopefully all of this makes sense to you because it really isn’t too complicated. All it involves is your lender collecting money from your insurance company to make sure they get their fair share, and then they pay you what you deserve from the remaining balance.

If you would like free quotes and to find out more about the loss payee on your car insurance policy, be sure to enter your zip code and check out the reliable providers in your area.

Auto liens 101: Taking out a loan

First off, it is important to understand how a lien could be placed against your automobile. An auto lien is when you fail to pay off your end of the contract or loan, the lien holder can essentially notify you that they will take away your vehicle. In most general terms, people can have liens placed against their property (i.e. house) if the financial implications are high.

When a person purchases a new car, either they have enough money to pay it off in full or you take out a loan. Whenever you take out a loan, you run the risk of having to deal with a lien. People that take out loans must continue to make the monthly payments towards their loans with the agreed interest rate as stated in their contractual agreement with the bank or credit union.

Failing to pay back loans results in a lien

If you do not pay back your loan on time, the company that is lending you money (whether it’s a bank, credit union, etc.) will repossess your property by placing a lien on your vehicle. Since you do not currently have enough funding to pay off your vehicle in full, you need some financial support. If anything would happen to your car, the entity that is lending you money knows that you wouldn’t have enough to pay off the damages in full. So in turn, they require that you continue making your payments on time as well as that you buy the appropriate amount of insurance.

What is a car insurance lien holder?

A car insurance lien holder is put in place to make sure that you purchase an adequate insurance policy when you do not fully own your vehicle. They will generally mandate that you purchase both fully comprehensive insurance as well as collision coverage. Although your insurance premiums may be fairly high, it is essential that you purchase a quality policy when you are not yet the full owner of your new vehicle.

If you do not buy the appropriate amount of insurance, the lien holder will notify you that a lien is in order – and they will send you the paperwork. From the date that you receive the paperwork, you will have a set number of days to resolve the problem. Either you start making payments soon, or the bank will come and take away your vehicle. Payments will be required for both an insurance policy as well as towards your vehicle.

Always stay up to date with payments

Even though it may seem like it is completely unfair to have to deal with a lien, looking at the situation from the perspective of a lender giving you money may change your perception of the situation. Whenever you have to deal with the lien, it is important to take full financial responsibility and try to come up with the money to pay for the interest on your loan as well as the appropriate amount of insurance.

For new and leased cars, you will want to make sure that you buy what is called “gap car insurance” – which is likely a type of coverage that is required by your lender. If you want to get a quote on a comprehensive policy as well as gap coverage, be sure to use the zip code tool at the top of the page for a free comparison. All you have to do is enter your zip code and the leading insurance companies in your area will give you free quotes. Getting a good deal on your insurance policy is very smart if you want to have extra money in case you ever have to deal with a lien!