Despite a slowed economy, many car collectors are still paying top dollar for their dream machines -- and to protect them.



At the Monterey Auto Auction recently, a 1965 Shelby Daytona Cobra Coupe CSX2601 sold for $7.3 million, setting the record for the highest price paid for an American car at public auction. Nearly 500 cars sold in Monterey, CA, for a total of more than $100 million.



But Paul Franklin, worldwide underwriting manager for Chubb Personal Insurance, said many car collectors are paying too much to insure these vintage vehicles and high-powered racers, and they're not all getting the coverage they need.



"Collector car owners often add these special cars to a standard auto policy, when they should be looking at a collector car policy," Franklin said.



Premiums are usually lower with a collector car policy, because these cars are often lovingly cared for and used for pleasure or as part of a hobby, not everyday commuting.



"Some classic cars sit in temperature-controlled garages year-round and are only taken out for car shows and special events," Franklin said. "Unlike the car you drive to work, which probably depreciated in value the moment you drove it off the sales lot, many of these cars are appreciating in value."



The appreciation of a classic car's value is another reason why owners should seek a collector car policy. With agreed value coverage, the insured value of a car is determined at the time a policy is purchased, so if the car suffers a covered total loss, there's no question regarding valuation. Also, with proper notice, a policyholder can increase the amount of coverage on the car to proper market value anytime prior to a covered loss. Standard auto policies are based on the depreciated value of a car.

Franklin added that it's important that collector car repairs are performed by experts in repair shops that specialize in restoring these unique vehicles. An insurance company with a deep understanding of what goes into a high-quality repair can help car owners select the right repair shops. "These cars are not just ordinary conveyances, to be quickly repaired and returned to service," Franklin said. "Rather, they are cherished 'members of the family' deserving of the best care available."



Other features to look for in a collector car policy, according to Franklin, include:



-- The ability to choose a body shop for repairs; -- No mileage restrictions; -- Automatic worldwide coverage for newly acquired autos, which is important for collectors who travel to auto shows, in the United States or overseas, and sometimes make new purchases; -- High limits for comprehensive, collision and liability; -- Off-premise coverage for fire, explosion and other perils while the car is in the repair shop; and -- Replacement of damaged parts with authentic or newly handcrafted parts.



The member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property and casualty insurance for personal and commercial customers worldwide through 8,500 independent agents and brokers. Chubb's global network includes branches and affiliates in North America, Europe, Latin America, Asia and Australia. Chubb is a worldwide leader in insuring fine homes, automobiles, yachts, antiques and other collectibles, and personal liability. Additional information on Chubb can be found at www.chubbcollectorcar.com.





SOURCE Chubb Group of Insurance Companies