insurance

What car insurance does and doesn't cover

You might need specialized insurance
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You might need specialized insurance

Standard auto insurance is great for family cars, but specialized rides such as motorcycles, motor homes and collector cars call for specialized policies. Laura Bergan, spokeswoman for American Collectors Insurance in Cherry Hill, N.J., says specialty insurance can include add-ons such as reimbursement for specialty parts and labor in a restoration body shop that aren't covered under a standard policy. Specialty insurance is particularly important for collectors because collector policies determine the value of the vehicle differently from traditional car insurance providers, Bergan says.

Standard car insurance defines the value of your car as "actual cash value, or the replacement cost minus depreciation," Bergan says. "Collector vehicles don't depreciate; they appreciate over time."

"(With collector's insurance), the insurance provider and the insured agree on the vehicle's value. It's written into the policy that it's guaranteed in the event of a total loss," Bergan says.


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