Antique Automobile Liability Insurance Laws in Texas
Antique-automobile liability coverage is available through standard automobile insurance carriers such as Allstate, Chubb, Fireman's Fund, Geico, Liberty Mutual, State Farm and Travelers. Specialty insurers provide customized insurance coverage to antique car owners. An antique-automobile's liability coverage in Texas can't exceed minimum limits. Compare premium costs for liability coverage of $100,000 per person, per accident or $300,000 per accident. These levels represent minimum liability coverage required in Texas.
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Necessary Information
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Many standard and specialty insurance providers offer antique-car collectors online quotes. Owners must provide the car's value, location, how the car is stored, whether it's stock or modified, how many miles added per year, and whether another insurer provides collector-car insurance. The best way to determine value is a recent bill of sale. If the car is inherited, obtain an estimate of replacement value from a certified antique-car appraiser. Most states classify cars aged 25 years or older as antiques.
Standard Insurer Liability Coverage
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You purchase an original 1908 Ford Model T for $40,000 in 2010. Considering the vehicle's original cost of $850, the vehicle has appreciated substantially through the years.
Your daily-use car is insured by a national insurer. The minimum coverage limits for your antique car differ from those for your other vehicle. Texas requires only 25,000 for bodily injuries of one person, 50,000 for body injuries per accident, and 25,000 in property damage liability for your daily-use vehicle.
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Standard Insurer Coverage Costs
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The policy for your daily-use vehicle costs only $500 per year. You're surprised to get a quote of more than three times this amount for your new antique car. You've informed the agent that the antique car will be housed in a climate-controlled storage unit, and that no more than 1,000 miles will be added to the car per year.
Your insurance agent explains that any future claims against the "actual value" policy will be based upon your Model T's depreciated value. This statement concerns you. Your antique car has appreciated for many years. In good condition, your car may continue to appreciate for many years to come.
Actual-Value Vs. Stated-Value or Agreed-Value Policies
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Authors Earl Davis, Diane Perkins-Davis and Paul Pitzonka of "101 Projects For Your Mustang" explain that stated-value or agreed-value policies may better suit the needs of classic- and antique-car collectors. In these policies, the insured provides a stated value, such as purchase price. An agreed-value policy may best suit collectors. In the event of the vehicle's total loss, the insured may collect the full coverage amount.
Specialty Collector-Car Insurance Programs
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Specialty insurance programs offer lower insurance premiums and more services, according to The Horseless Carriage Club of America. Many collector programs provide more services, such as replacement spare parts of up to $750 a year, at no additional cost. Premium quotes obtained from four specialty insurers for an unmodified 1908 Ford Model T valued at $40,000 for a Dallas, Texas, driver range from $393 to $486 per year.
Coverage for all quotes includes Texas state minimums for liability of $100,000/ $300,000 per person/per accident; liability-property damage of $100,000 per accident; personal injury protection of $2,500 per person/per accident; uninsured/underinsured motorists $100,000/$300,000 per person/per accident; and uninsured motorists property damage $25,000 per accident. All quotes assume 0 deductibles.
Quotations are not guarantees of coverage. Antique-car owners must submit to the underwriting requirements of an insurance provider to obtain actual insurance costs for minimum liability coverage.
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References
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- Photo Credit antique automobile image by MAXFX from Fotolia.com
