If you’re looking to insure a classic car, you need to remember that it is not the same as insuring a car used for everyday use. Classic cars require different types of coverage because they are used differently and for different purposes. For many, a classic or vintage car is a luxury that is pampered and rarely driven on busy road. Almost half of the owners of vintage and classic cars are paying too much or don’t have the right coverage for their vehicle. There are several things to look out for when insuring a classic car.
Treat your classic car differently than your regular car
You can’t insure your classic car like you would your regular car. Look for an insurance company that understands the difference.
Classic cars require different coverage because they have different requirements. If a bumper gets damaged, it cannot be simply ordered from a dealership. It is a special order item and therefore may cost more to replace.
However, the rates for insuring a classic or vintage car should be considerably less since the risk for damages or loss are typically lower. This is factored partly by the fact that classic cars are driven less than everyday use cars. Also, classic car owners tend to be more careful when driving them.
Find insurance that includes agreed value coverage
Make sure the insurance you choose for your classic car includes agreed value coverage. Simply put, this means if your classic car is totaled, you will be paid a guaranteed amount.
This amount is agreed on by you and your insurance company at the start of the policy. It is often referred to as the replacement value.
Normally, an insurance company will take into consideration depreciation, but this should not be the case in specialty classic car insurance. Classic cars tend to appreciate, not lose value.
Look for the right insurance company
There are insurance companies or divisions that specialize in insuring classic cars, only working specifically with these types of vehicles. For instance, Americans Collectors Insurance only works with collector, vintage, classic, and antique car and motorcycle owners. These specialists understand that there are different needs for classic cars.
For example, they differ from other cars in terms of maintenance requirements and driving conditions. You may only plan to tow the vehicle to classic car shows.
When you do drive it, it might only be short distances and never on the highway. Because of this, you should pay a much lower rate to insure your classic car than to cover your commute-to-work car.
Factor in the restrictions
Many insurance companies have several restrictions associated with insuring classic cars. For example, they like classic car drivers to be 30 years old and over to ensure adequate driving experience.
Often there will be mileage restrictions, making your coverage limited or void if you drive over a set number of miles. A common mileage restriction would be no more than 5,000 miles driven per year.
This may not work for you if you want to take your classic car on weekend drives along the countryside, letting your 20 year old nephew drive once in awhile.
Make sure roadside assistance is included
It is important to make sure the roadside assistance included in your classic car insurance guarantees flatbed towing. It is the safest method to move your car because all of its wheels are off the ground. Chances of a classic car being towed due to mechanical issues are higher than a claim being filed because it was in a major accident.
While insuring a classic car can be affordable, it also has its own set of challenges. It’s important to find an insurance company that deals with specialty vehicles, has the expertise to ensure it is covered properly, and can meet your needs as the owner. Even if you don’t plan on driving your classic car, always keep it insured. In the unfortunate circumstance it is stolen or the garage burns down, you want to make sure you can recover your loss.