At the recent Monterey Car Week, auctioneers pulled in just under $340 million in sales. While not chump change, it was well below 2015 results ($396 million, for reference).
As I explained in a recent conversation with Independent Agent, sales at the Monterey Car Week usually set the tone for what the next six months will look like. So what does this mean for collector car enthusiasts? I’ve outlined a few thoughts below.
Ignore the Background Noise
Yes, it’s true that the cost to insure a collector car corresponds directly with market value. But a softening in the market doesn’t necessarily mean you should automatically reduce your insurance coverage—the same way an uptick in value doesn’t always mandate a drastic increase.
In an ever-fluctuating market, it’s important to keep a steady hand. Rather than relying on news headlines about the latest record-breaking sale or disappointing auction to guide your insurance decision making, consult a third-party appraiser for an unbiased opinion. Regular appraisals are the most accurate way to determine the value of your collector car and can help ensure you have the appropriate coverage in place.
Don’t Overlook the Details
Whether you’re looking to sell your collector car at an upcoming auction or plan to hold on to it until the market rebounds, collector vehicles need to be driven with some regularity in order to remain in tip-top shape.
It’s therefore critical to check with your insurance agent or broker regarding whether “pleasure driving” is covered under your insurance policy. If it is, find out what—if any—restrictions are in place. Asking these questions in advance will do more than protect you in an accident. In the event of related damage, it will ensure you have the funds necessary to restore your car to prime condition, critical to those collectors looking to auction their car in an upcoming sale.
It’s About You
Regardless of whether the market is up or down, collector car enthusiasts must take the necessary precautions and measures to protect their vehicles. Failing to do so can put a collector car at risk of damage, impacting its value no matter where the market stands.
VIA: Jeff Walker: www.riskconversation.com/blog/personal/2016/09/30/what-car-enthusiasts-should-know-about-the-collector-car-market