If you own a car, you’re more likely to have car insurance. However, traditional car insurance may not be suitable for classic cars, which means you need classic car insurance. One reason is that an ordinary vehicle depreciates while a classic car’s value rises over time.
And you may think that a classic car is limited to vintage muscle cars, antique pickup trucks, or old roadsters, but it’s not. Depending on the insurance company, even classic car replicas and ‘modern classics’ may qualify as classic vehicles.
In addition, you should also know the following about this type of insurance:
- Agreed Value Coverage
A typical car insurance works by determining the value of the auto based on the cost to repair it and its comparable models. Meanwhile, an appraiser determines the value of a classic car based on its worth. Thus, you can enjoy an agreed value coverage worth USD$50,000 if that’s the worth of your vehicle. This means that insurance policy providers insure it based on whatever buyers are willing to pay just like a piece of art.
And since typical vehicles depreciate over time, the maximum payout you’ll receive may also depreciate as years pass by. On the other hand, an agreed value policy won’t change. This means it’ll not decrease or depreciate over time.
What’s even better about it is you can adjust the coverage amount of your classic car. That’s because this type of vehicle may increase its value as years go by, which means you can also adjust the policy coverage to fit such value.
For more information about the types of car insurance available, checking BestCarInsurance.org and other similar sites would help you gauge what policy is best for each car you have.
- Requirements
Aside from the value of your car, there are other requirements you need to meet. While different insurance policy providers vary with their conditions, here are some of the common ones:
- Whether renewing or purchasing a classic car insurance policy, you need to present a clean driving record.
- The vehicle must have a locked facility or private garage to store and maintain it properly.
- Other insurers offer special coverage for trips that involve driving the vehicle to auto club events or car shows. However, others allow you to drive it to such events without buying a different type of coverage.
- Insurers may require you to have another vehicle for routine or everyday driving and not the insured classic car.
- Other providers may limit the car’s mileage.
- Policy Shopping
Aside from a guaranteed or agreed value policy, you also have to consider other features or coverage of the policy before buying one. First, make a list of the providers you can choose from that specialize in rare cars. Then, you can compare the benefits and coverages of the policies from your list of providers.
Sometimes, a great classic car insurance company may not offer the best policy that you prefer. With such, here are some factors you need to consider:
- In-House Expertise
This means you need to find the ones that have expertise in servicing your car. For instance, if you encounter damages or a collision, the provider’s service team should be able to assist you. Ask the provider what they can provide and what instances they cover. That way, you can gauge if they can give high-touch service.
- Personal Repair Shop Choice
You should also ask whether the provider will cover the repairs that your car will incur if you need to find repair shops of your own preference. This can be possible since classic cars have unique parts. This means the in-house service team may not have all the parts your vehicle may need, especially if it’s a limited-production or hotrod car.
- Mileage Restrictions
As mentioned, providers implement mileage limitations. This means that the classic car isn’t meant for long use on the road. With such, you must ask them the number of miles you can only put in your auto. If you need more than the required, ask them if they offer a customized policy. However, you may have to pay more for the added coverage.
Conclusion
A classic car is like a piece of art. If you own one, you can treat it as an investment. Its value could appreciate over time, and you may even find buyers who are willing to buy it for more than its original price. And like other investments, you need to insure it. That way, you can protect your classic car from uncertainties or catastrophes. You may be paying for the insurance, but it’ll be worth it once you plan to sell it in the future.