Did you know that in the United States it’s estimated that more than 15% of registered cars are collector’s cars? Each year, collector car sales are estimated to top $2 billion. It’s a big market, and as a result, collector’s car insurance is common. If you’re looking for collector car insurance policies in Federal Way, WA, contact Hart Insurance. Let’s examine why the right insurance policies could prove crucial for protecting collectors and their financial well-being.
Collector’s Cars Are an Investment Worth Protecting
There’s an old saying that when you drive a car off the dealer’s lot, it loses value. This is often true. Once a vehicle is “used,” potential buyers will typically see it as worth less than a brand-new version of the same make and model (assuming similar features). Several years later, most cars will be worth even less.
Over time, however, more and more cars will be sent to the junkyard. The supply of a particular model, say a 1970 Ford Mustang or 1985 Chevy Corvette, will generally shrink. The cars will become less common, and according to basic economics, shrinking supply often correlates with rising prices.
This is especially true for desirable cars. The demand for a 1995 Honda Civic might not be especially high as it was a common commuter car. However, a 1990 Chevy Corvette will be sought out because it’s a famous car built for performance.
All of the above is important because it leads to collector cars enjoying rising prices and high overall value. For this reason, collectors should protect their investments with an appropriate insurance plan. Want to set up collector car insurance policies in Federal Way, WA? Contact Hart Insurance.
