Guide to Classic Car Insurance ?

Answer 1

If you own a classic car, you may consider it to be your "pride and joy". It makes sense that you would forgo traditional auto insurance and purchase classic car insurance. Your classic car or collector car is probably worth a pretty penny, and you no doubt want to protect your investment with the best classic car insurance that you can afford. The level of classic car insurance that you choose for your car should be based on how you are planning to use the car. Just like any other type of auto insurance, classic car insurance protects you from the "what ifs" in life.

Classic Car Insurance vs. Regular Auto Insurance

Can you purchase regular car insurance for your classic car? Yes, you can. But should you? Classic car insurance is designed specifically for classic cars, which means that it has features that traditional car insurance does not offer. Regular or traditional car insurance only covers automobiles that are used in your everyday activity, such as driving to work, running out to the store, or traveling on vacation. These basic auto insurance policies usually include coverage that will cover damages to your car if you are involved in an accident on the roadway or if your car is stolen or vandalized. For older vehicles, many people just put the bare minimum coverage on the car that is required by law. Collector car insurance or classic car insurance has different coverage levels and different requirements for owners to follow. For instance, some classic car insurance policies might stipulate that the car is just a showpiece item, and driven rarely if at all. When buying classic car insurance, you will also find that insurance companies do not rely on "blue book" or "book" value when determining the replacement value of your classic car. They opt instead for an agreed or stated value, since book values depreciate and the replacement value of classic cars goes up the older the car is, not down.

Shopping for Classic Car Insurance

Keep in mind that classic car insurance is specialty coverage. Because of this, classic car insurance companies will likely make special requests when setting up the policy for your classic car. They may place restrictions on the use of the car in order for the policy to be valid. They may restrict the mileage that the car can accrue over the course of the policy period or some other time frame, such as within one year. Classic car insurance providers may also restrict how you may use your vehicle.

Moreover, the classic car insurance provider may offer you a policy that only covers your classic car during particular events or during certain situations. For example, your policy may only be in force when you are driving your vehicle through a parade, or showing your classic car at a car show. You might also be asked to transport the classic car on an enclosed trailer to the event rather than drive it there. It all depends on the amount of coverage you want and how much you are willing to pay. Obviously, insuring the vehicle only during events is a cheaper route to go when it comes to classic car insurance, but in most instances, that type of policy and level of coverage will not help you cover your loss if the car is stolen or damaged at some other time of year.