At Mercedes-Benz of Fort Washington, we know that a classic Mercedes-Benz model is an investment, so you need an insurance plan that treats it as one. Insuring a classic car is a little more complex than insuring a new car. Unlike newer models, classics often accrue value over time rather than depreciating. As such, your plan will have different terms and conditions. Let’s take a closer look.
Why Is Insuring a Classic Car Different?
Insurance companies calculate the value of a new car using what is known as the Actual Cash Value, which accounts for value lost due to depreciation. Since classic cars often build value, part of insuring it includes negotiating an Agreed Value with your insurance that reflects the vehicle’s current worth.
Restrictions on Insurance
Every insurance policy has requirements to remain in good standing; classic car insurance is no exception. It’s common for insurance companies to cap mileage and to restrict use to certain purposes, like weekend drives, car shows, and parades. You may also need to prove that the car is stored in a locked, safe area to safeguard against theft and weather damage.
What About During Restoration?
When you first buy your classic Mercedes-Benz car, it may need some care to return to its glory days. As you put work into your car, replacing parts and restoring materials, you’ll want the amount of your insurance coverage to increase, too. Some plans offer “vehicle under construction” coverage, so the policy adjusts to encompass parts and labor.
Find a Classic Mercedes-Benz Car in Fort Washington, PA
Turn your Mercedes-Benz love into a one-of-a-kind piece of history. Explore our Mercedes-Benz dealership in Fort Washington and find out more about owning classic cars or models that are sure to be in the years ahead. Apply for financing and take a test drive today!
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