classic car insurance
Classic cars require a special type of insurance usually referred to as classic car insurance by the industry. This special insurance is non-standard and affords the owner of a classic car optimum coverage for his investment. Although, Insurance companies have certain requirements to classify your vehicle under their classic car insurance program.
In large part, insurance companies define the age of a classic car as one that is at least 15 years old. In some States, a more broad definition of a classic car is used, be sure to check your state definition to ensure your car is indeed a classic.
There are different sets of rules for classic car insurance than there are for standard car coverage. Besides the age of an automobile, the insurance provider will have other prerequisites the owner must meet. Those conditions will be a limit on the number of miles driven in a year, keeping the car securely stored when not in use, and limitations on the age of the driver and their driving experience and record. As part of your classic car insurance, the company will also stipulate an ‘agree-upon’ value .
State laws, although they vary, allows a negotiation between an insurance provider and insured to agree on the value of the classic car when the policy is written. You and the insurance company will set a value on the classic car that will become part of the policy. This agreed value is the monetary amount that the classic car insurance will cover in case of total loss. This protects you from receiving a nominal amount as in the case of a regular policy which will use fair market value to pay for total loss.
In regards to the age and experience of a driver, most companies will require a driver be at least 25 years old and have a minimum number of years driving. Naturally, the insurer will also request a DMV report before writing your classic car insurance policy.
In addition to the age and experience of the driver/owner, a mileage limit will be assessed on the classic car. Insurance providers vary on this limit, some allow up to 5,000 miles per year while others may permit more. Some providers will allow you to choose a lower annual mileage, which may lower your monthly premiums. In many cases the insurer will not restrict your use of the car to drive to car clubs, classic car events or car shows, they will restrict your use for commercial purposes or daily commuting.
To get the best out of your classic car insurance, find a company that specifically writes this type of policy. You will find that specialists in this field are better situated to handle your specific needs.