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You probably already have auto insurance if you own a classic car. However, do you have insurance with an insurance company that specializes in insuring only classic cars? Or do you just have insurance with a regular insurance company? If it is the latter, you may be paying more than is necessary for the wrong kind of insurance all together.
Classic car insurance is quite unique when it comes to auto insurance. It actually provides insurance coverage on cars that usually are not driven very frequently. That fact and also the special nature of this kind of insurance, often allows insurers of classic cars to charge a lot less for insurance. This can save classic car owners a significant amount of money as well as giving them peace of mind in knowing that the specific concerns and risks that come with owning a classic car are covered.
Depending on the insurance company that your purchase insurance from, you policy could include a range of special as well as standard features. Probably the most important feature is agreed value coverage. This type of coverage means your classic car will be insured for its full value in cases of a loss. Your car’s value is agreed upon ahead of time by the insurer and you. This is a very important element of classic car insurance due to the fact that regular car insurance will take depreciation into account which ends up reducing the amount paid out on an auto claim. If you have regular insurance on your classic car this is the primary reason why you need to think about changing your insurance.
There are other special features that classic car insurance can include:
- Premium rates that are based on usage of the car (the insurer will usually offer different premium rates and policies in different categories that are based on annual mileage figures)
- Collision, liability and comprehensive coverage, which are very similar to regular auto insurance
- No deductible
- One liability charge even if you happen to own more than one classic car
- Instant coverage for new purchases up to a maximum dollar amount (the coverage goes into effect before the car is even evaluated by your insurance company)
Many insurers of classic cars do have some special requirements that must be met. They can include the following:
- Any car that is insured must be kept in a locked and safe garage whenever the car is not in use
- Classic cars can not be driven for every day errands and tasks like driving children to school, for business purposes or to replace your regular car.
- Some insurers have their own exclusions. As an example, there could be a stipulation that the insurance on the car doesn’t apply to racing cars, driving at timed events or at high speeds, or a car that is used for driver education.
- If the car is in the process of being restored, there could be special conditions that must be met as to where the car is to be stored during the restoration process. Agreed value coverage might also not apply to cars that are undergoing restoration.
