Many car enthusiasts have garages filled with collector vehicles. In the aftermath of Hurricane Sandy and other storms, some owners of car collections were dismayed to find that their standard auto policies pay only what the insurance companies define as the actual cash value, which may be many thousands of dollars below their car’s true market value. Car collectors are far better served by collector-car policies, which pay a guaranteed sum that is agreed upon when the policy is purchased. That way, if the car is totaled, car collectors know exactly how much they will get. Unlike homeowners insurance, collector-car policies do not exclude flood insurance. More cars are destroyed by flooding than wind.
NOTE: Unlike a collector-car policy, a stated value policy provides a limited payout; it pays to know the difference.