Special Classic Car Insurance
Classic cars require a special type of insurance usually referred to as classic car insurance by the industry. Classic car insurance is not a standard type of coverage and has special protections for your investment. However, classic car insurance providers have certain qualifying factors before a policy for your vehicle can be underwritten.
In large part, classic car insurance companies define the age of a classic car as one that is at least 15 years old. In some States, a more broad definition of a classic car is used, be sure to check your state definition to ensure your car is indeed a classic.
There are different sets of rules for classic car insurance than there are for standard car coverage. Besides the age of an automobile, the insurance provider will have other prerequisites the owner must meet. Those conditions will be a limit on the number of miles driven in a year, keeping the car securely stored when not in use, and limitations on the age of the driver and their driving experience and record. Furthermore, the insurer will want to set an ‘agreed upon’ value for the vehicle .
State laws, although they vary, allows a negotiation between an insurance provider and insured to agree on the value of the classic car when the policy is written. The insurance company and you will set a value on the classic car that will become part of the policy. This agreed value is the monetary amount that the classic car insurance will cover in case of total loss. Unlike a regular vehicle, where ‘the blue book’ or fair market value determines the total loss value of a vehicle.
As for the age of the driver, most providers require a driver to be at least 25 and have at least 9 years driving experience. Naturally, the insurer will also request a DMV report before writing your classic car insurance policy.
Mileage is another concern of the insurer, this number may vary from one company to the next, but generally it is around 5000 miles annually. If you want to reduce your monthly premium, you may be able to select a lower mileage limit with some companies. In many cases the insurer will not restrict your use of the car to drive to car clubs, classic car events or car shows, they will restrict your use for commercial purposes or daily commuting.
Using a reputable firm that specifically deals in classic car insurance is the best way to ensure you are getting the protection and value for your classic car. Usually these specialized companies can serve you better than a regular insurance provider.
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