By James J. Robinson
How can one find the
best auto insurance for a classic car? Is it even possible to find cheap
antique car insurance? Classics cars can be well worth the sometimes pricey
cost of upkeep and storage - there is no need to have to pay more for insurance
coverage than necessary. Read on to learn some of the things that you should
know before you purchase a classic car auto insurance policy.
Who hasn't turned
their head while driving down the road to get a better look at a classic or
collectible car? We're enamored with the lines of the car as well as its
pristine condition. But the detailed attention in maintaining a classic car's
flawless appearance and operation is not only to draw admiring looks, it is
also necessary in order to keep up the market value of the car. For this reason,
along with others, specialized classic auto insurance policies were developed
to meet the needs of classic and collectible car owners.
Another reason (a very
important reason), for insuring your vehicle as a classic or collectible is the greatly reduced cost of classic car insurance relative to
standard auto insurance. Standard auto insurance can cost as much as 200%-300%
more than classic auto insurance. So, what is the biggest factor that causes
such a great disparity in price between classic auto insurance and standard car
insurance? Generally, collector vehicles are driven on a limited basis (the
garage is where they are usually found). As a result, the risk of accident and
loss to collector vehicles is considerably lower than the risk involved in vehicles
that are regularly driven.
DOES YOUR VEHICLE
QUALIFY?
The following is a
list of classifications for collectible cars.
Antique cars - 25
years or older
Custom cars - 1949 to present
Classic cars - 20-24 years old
Collectible cars - 15-19 years old
Exotic cars - less than 15
Street rods - Pre-1949
Custom cars - 1949 to present
Classic cars - 20-24 years old
Collectible cars - 15-19 years old
Exotic cars - less than 15
Street rods - Pre-1949
This is the standard
listing for those cars that are considered eligible for classic car auto
insurance, but certain cars may be accepted at the discretion of the insurer.
Sometimes, classic car insurers will customize an insurance policy for a
particular vehicle.
WHAT ARE THE
RESTRICTIONS ASSOCIATED WITH COLLECTOR VEHICLE INSURANCE?
To keep collector auto
insurance rates low, certain usage limitations are placed on the insured
vehicle.
Cannot be used for
everyday use. This
rules out using it to drive to work, run errands, or go out for that bite to
eat. Under a classic car insurance policy, car usage should be limited to
driving to and from car shows and the occasional parade.
Cannot be driven more
than 2,500 miles per year. 2,500 is a fairly standard number among insurance companies that
offer classic coverage, but there are some insurance companies that have
mileage plans that allow up to 5,000 or 6,000 miles per year. This increased
mileage limit was put in place to accommodate those drivers who like to take
their cars to distant car shows. Of course the premiums are greater.
Must be kept in a
locked garage. A
locked enclosed trailer will also do, but a carport will not meet the grade
even if you live in a gated community with a security guard. (The weather is
also an enemy of the classic car). Some policies might stipulate that a car
cannot be left unattended in a parking lot. This means leaving your car in a
motel or hotel parking lot might present a problem.
WHAT CONSIDERATIONS
SHOULD BE KEPT IN MIND WHEN CHOOSING CLASSIC AUTO INSURANCE?
Does the company offer
Agreed Value Coverage or Stated Value Coverage?
Agreed value lets the
classic car owner and the insurance agent set a value for the auto that does
not necessarily reflect the market value for that car. Usually, the insurance
agent will have to do a thorough inspection of the car both inside and out and
will require photos of the vehicle.
What are the usage and
mileage restrictions?
Find the policy that
best suits your plans for using the car. Why pay for a plan that covers mileage
for 5,000 when you know that you won't even come close to using the 2,000 miles
available in a cheaper policy.
Can you choose your
own repair shop?
The Mom and Pop shop
down the road might do a good job on your regular car and offer the lowest
repair bid in town, but do you really want them working on your classic
"baby"?
What company
underwrites the policy and what is the rating for that company?
You want to be sure
that the underwriter has a good track record and is going to be able to fulfill
all of their obligations even if for some reason there is a larger than normal
influx of insurance claims.
Are there any discount
programs available?
A good insurance
company should always inform you of any discounts that are available to you,
but it doesn't hurt to ask.
Does your insurance
offer insurance for classic or modified cars that are under construction?
Some companies will
monitor the progress that is being made on your vehicle while it is in the
garage for repairs and modifications and allow you to adjust the value of the
car as the project continues. Also, this type of insurance covers damages to
your auto in case of a catastrophic occurrence such as a fire, or the hydraulic
lift fails, or the tool cart falls on your car (with a little imagination the
possibilities are endless.)
WHY CAN'T I JUST ADD
MY COLLECTOR CAR TO THE FAMILY AUTO INSURANCE POLICY?
You can, but it could
be a costly mistake. If repairs are needed you may be forced to accept the
lowest repair bid, or if the car is badly damaged, the insurance company could
opt to have it totaled. And although a discount is usually given for cars
combined under one policy, that discount still may not provide the savings available
if the car was insured under a classic auto insurance policy.
Finally, make sure
your insurance company has a good understanding of classic cars. In the event
that your car is totaled, you want to be able to work with a knowledgeable
representative and receive the full value for your car.
COMPARE CHEAP CLASSIC
CAR AUTO INSURANCE QUOTES ONLINE
Be sure that you shop
around and compare car insurance rates from multiple companies before you decide to purchase. The more
you shop the more you may save.
Get started comparing car insurance rate quotes today!
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