Your Classic Car Needs Special Insurance
Tuesday, July 28, 2015
Classic car. Collector car. Antique car. However you refer to it, it’s no ordinary vehicle to you. From the spotless interior to the gleaming chrome, it’s a prized and pampered possession, and your heart would break if anything happened to it.
If your classic car happens to get damaged or stolen, you want to be sure it’s covered with the right type of insurance policy. That’s why it’s important to shop around for the best coverage from an insurer that understands classic cars, and how much your baby means to you.
Before you choose an insurance policy for your classic car, be sure to ask these important questions:
1. How do you define a classic or antique car? You may be surprised to learn that in the eyes of your insurer, your 10-year-old car may not be considered a collectors’ item at all. Each insurance company will have a different definition of what a classic car is. For example, an antique car might need to be older than 25 years old. Make sure that you and your insurer are clear on the definition of what your car is as stated in your insurance policy.
2. How much can I drive my car? Most classic car policies are quite specific about the distance and frequency you are allowed to drive your car to keep your policy in effect. Usually your car can be used on a very limited basis to take it to exhibitions, car club activities, parades, and car shows. There may be a mileage limit for the year, and a strict no-daily-driving clause.
3. Does my policy cover actual value or market value? In the event of a serious accident where your car is totalled, you want to be sure that you and your insurer agree on what the value of your car will be at that time. While modern vehicles depreciate over time, classic cars appreciate. If the policy states market value, you may not receive a payout that is reflective of the true value of your car.
4. What about the cost of replacing damaged parts? Most classic car owners take great pains to source authentic parts for their cars. You want to make sure that damaged parts are replaced with parts of the same value.
5. Are there restrictions on where my car needs to be stored? Insurance companies often insist that your car is stored in a garage or a secure facility. Also, be sure to note if you have any special security features installed to protect your vehicle.
6. Do you take my driving history into account? Some insurance companies will want to know that you have a clean driving record of 10 years or more. They will also likely want to see proof that you have insurance on your daily driving vehicle as assurance that you’re not using your classic car as an everyday vehicle.
7. Is classic car insurance expensive? Here’s the best part. As a general rule, classic car insurance is considerably less than the cost of ordinary car insurance due to the fact that classic car drivers tend to drive their vehicles very little and pamper them a lot. That means you’re less likely to have an accident, and thus make a claim.
As you can see, there are important things to consider before you decide on a classic car insurance policy. Look for an insurer with a solid understanding and appreciation of classic cars who can offer the best coverage for your prized vehicle.
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