Classic Car Insurance
Where Do You Live?
Owning a classic car may require you to purchase a special type of classic car insurance. Classic car insurance is not a standard type of coverage and has special protections for your investment. Although, Insurance companies have certain requirements to classify your vehicle under their classic car insurance program.
In most cases, a classic car, as defined by the classic car insurance industry is one that is more than 15 years old. Some states have a wider definition of 25 years, so a check with your department of motor vehicles would be a first step to determining if your vehicle qualifies as a classic.
Since classic car insurance differs from regular car insurance, the providers of coverage will require a stricter set of rules on a classic car. Besides the age of an automobile, the insurance provider will have other prerequisites the owner must meet. The age of the driver, his driving record (with a minimum of years driving), storage of the car, and limits on annual mileage are all additional stipulations. Furthermore, the insurer will want to set an ‘agreed upon’ value for the vehicle .
Most states allow the insurer and owner of a classic car to decide on an agreeable value of the car. The insurance company and you will set a value on the classic car that will become part of the policy. In case of total loss, this is the amount the insurance company would pay as value of the classic car. Unlike a regular vehicle, where ‘the blue book’ or fair market value determines the total loss value of a vehicle.
As far as the drivers age, most insurers will mandate a driver be over 25 and to have a license for at least so many years. Naturally, the insurer will also request a DMV report before writing your classic car insurance policy.
Mileage is another concern of the insurer, this number may vary from one company to the next, but generally it is around 5000 miles annually. Some providers will allow you to choose a lower annual mileage, which may lower your monthly premiums. Driving your classic car to shows, club events and classic car activities are generally not restricted, however daily commuting and commercial use is prohibited in most cases.
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.
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