Question

Current situation: Ronald Rosewood is the owner of 2 cars. Car # 1 is a 1968 Corvette Stingray that Ron keeps in storage and only is used to participate in parades in the summer from June 1 until Labor Day. Car # 2 is a 2018 Jeep that is leased and Ron drives it to work (25 miles each way). Ron likes to have a $100 deductible on collision and comprehensive coverages. What coverages should Ron buy? Please provide a solution to the above situation and supporting reasons for your answer.

Answer 1

Ron should opt for classic car insurance for the 1968 corvette Stingray as it is essential that a Vintage car have a special tailor made insurance policy. Discover for an amount which denotes your value of the vehicle rather than the book value as provided by standard Auto Insurance. This value can be decided at the time of insurance and is a major factor classic cars as the perceived value and what has been put into the vehicle financially and emotionally, is not depicted by book value and intrinsic value due to such vehicles being a status symbol providing intangible value in the form of enhanced self image and worth. Classic car insurance is highly flexible providing various options which can be selected besides agreed value, such as the level of utility on the basis of miles per year. Other options such as roadside assistance in case of emergency situations. Opting for emergency assistance with all simultaneous benefits of Roadside assistance including coverage for expenses incurred due to the occurrence of the emergency and protection for personal belongings stored within the car. This option needs to be adopted by Ron by remaining claim free can reduce collision deductible by $100 with each annual policy renewal for up to a maximum of 500 of a 5 years with this option, which is offered by most insurance companies.

For the Jeep Ron should go for comprehensive insurance with suitable endorsements, as it is a core Auto Insurance coverage which will cover all unexpected events but since it does not cover collision with another vehicle it should be supplemented with purchase of liability insurance which is mandatory in most states and collision insurance. For Greater protection such as gap coverage, which is useful in case of depreciation been hai and the settlement in case of an accident not providing adequate coverage for the amount owed on the lease. Vehicle value upgrade or new car replacement coverage can also be opted for the comprehensive coverage deductible amount can be decided and informed at the time of purchasing the policy.