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One of my newest clients contacted me to let me know that she won a 1973 Cadillac Eldorado convertible. Not too shabby to drive away in a classic Cadillac! When she contacted me she asked what would be the best way to insure her new collectible auto.

Insuring this type of vehicle requires specialized coverage because insuring a collectible auto is different because regular use vehicles are on the road every day but antique or classic cars are typically used for limited pleasure driving, auto shows, and parades. In addition, while normal vehicles depreciate in value, antique or collectible vehicles often significantly increase in value over time.

The following are some issues to consider when procuring coverage for collectible cars.

• Vehicle Condition -- Many specialty insurance companies may want to insure only classic cars that are in mint condition; if your collectible has prior damage or shows extensive wear and tear, it may be difficult to purchase coverage. But most specialty insurers are willing to provide coverage (with increasing values) if you are actively renovating the vehicle.
• Vehicle Usage -- Most specialty insurance companies stipulate maximum mileage limits per year, such as 3000 or 5000 miles. Thus, it is important to verify the limits and keep track of the mileage on the vehicle.
• Vehicle Valuation -- Agreed-value policies are better than stated value policies. Agreed value policies guarantee that, in the event of a total loss, the insurance company will pay you the full amount listed on the policy, less any applicable deductible. Stated value policies, while rare, are often open to interpretation concerning the vehicle's value. You should also consider inflation guard coverage (automatically providing increasing limits every quarter or year) for your vehicle. I can provide you access to an agreed-value insurance policy.
• Vehicle Storage -- Antique and collectible insurance companies normally require that these vehicles be stored in a fully enclosed, locked garage or storage facility when not in use. Failure to abide by this requirement could jeopardize coverage.

Please call me concerning your collectible auto; I can assist in the arrangement of the best insurance at the best value for your car collection.

Purchasing the auto insurance that is right for you can be confusing, especially for first-time buyers. By learning the basics on how to get the most for your money, you can save on your auto insurance and feel confident you have adequate coverage. Below are some tips that can help you save money on your auto insurance.

• Be a safe driver. Drivers with good driving records can save as much as 60 percent over drivers who cause accidents.
• Enroll in a driving class. Drivers who complete a state-approved defensive driving course, or drivers under the age of 21 who take a driver training course, could qualify for savings.
• Buy a car that includes safety features such as anti-lock brakes, alarms or other security features, airbags, and automatic seat belts.
• Choose a higher deductible (what you pay before your insurance policy kicks in), which can mean paying less for your policy.
• Eliminate unnecessary coverages. If you drive an older car with little cash value, consider eliminating “collision” or “comprehensive” coverage, which pays for damage to or theft of your car.
• Insure more than one car with the same company, and you may be eligible for savings.
• Insure your car and home with the same company. You could save money if you have more than one type of policy with the same insurance company (for example, an auto policy and a homeowners policy). The more good business you give the company, the more valuable you are as a customer.
• Look for low-mileage discounts if you car pool or do not put a lot of miles on your car annually.
• Check for student discounts such as a good student credit for maintaining a B average, or if a driver in your household is living away at school and not driving as much.
• Buy a safer car that will cost less to repair and less to insure. Check crash-test reports, repair records and manufacturer recalls of any car you are considering. A consumer protection magazine can be very useful or check car sites on the Internet.