Classic Car Insurance
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Your classic car: top of the heap. Those features! This car stands apart! Unfortunately, the classic car attracts its fair share of thieves and vandals as well as admirers. Because they’re rare and tend to be expensive, many large car insurance companies don’t even offer insurance for these beauties. That doesn’t mean you can simply drive without insurance, however. Many states now require that your car, no matter the make and model, be insured, and you can face stiff penalties if you’re caught driving without it.
Insurance for your classic car is available, but will take some research to find. A few companies like Hagerty, Leland West, and Norwich Union specialize in these products, so that is a good starting point. Unlike conventional auto insurance, in which you typically don’t negotiate the maximum amount the insurance company will pay you in the event of a total loss, with classic car coverage, you need to come to an agreement with your insurance company on a specific amount they will cover. This amount can vary widely from car to car, depending on how much work has gone into it.
The best option to pursue in terms of insurance for your classic car is the “Agreed Value” policy. Before purchasing this type of policy, you must sit down with the insurance agent and agree to the value of your car. If the vehicle is ever lost or destroyed, then this is the amount that will be paid by the insurance company. At this meeting you will also receive the quote for your monthly payment. This too distinguishes antique and classic car insurance from traditional insurance. Antique and classic car insurance premiums tend to be significantly lower than what you would pay for traditional insurance. However, in order to qualify, you must meet all of the following criteria:
• A minimum age is required to ensure that the driver of the classic car has plenty of driving experience.
• A minimum age for your car is also required, typically about 15 years or greater. Anything newer than that will generally not be eligible for this type of coverage.
• In arrange to qualify for typical automobile insurance; there are certain limits on how your classic automobile can be used. For example, you must have a garage. Additionally, you can’t use your typical automobile for some business purposes. Finally, there is a limit on the number of miles that you can put on your vehicle every month. If you go over the mileage limit you can but your vehicle in risk of losing its defensive insurance. Because of the imposed mileage limit, you have to also be clever to show that you have one more vehicle which is used for usual driving.
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