If you are an antique car owner, you already know how special your car is. We understand here that you have a car that is at least thirty years old and six to seven figures in value to be called antique or classic. Naturally you will want to preserve your car’s special character and protect its value. That means you will need to buy car insurance especially for antique cars rather than a general car insurance policy. One of the prime reasons for this different treatment is that antique cars appreciate in value over time while general use cars depreciate in value. In a number of other ways you use your antique car differently, typically limited to shows, periodic association events, and parades.
Coverage for Antique Cars
If you do not drive your car more than to special events, you will not need the full package of insurance coverage. At the same time you will want to have your special needs covered in a customized insurance policy. Talk to insurance agents for a number of classic car insurance companies
to get the best deal.
Generally, classic car insurance policies will include liability, collision, comprehensive and uninsured/underinsured coverage. The liability section will pay for personal injuries and property damage to the other driver. Collision coverage will pay for damage to your own car. Comprehensive coverage pays for non-collision damage such as caused by fire, wind or storms. The uninsured/underinsured part will pay for your injuries and damage to your car in the event that the other driver is not insured or has insufficient insurance.
Insurance Company Requirements
The many differences among policies and companies offering classic car insurance plans necessitates that you carefully review all requirements in any policy you consider. Many antique car insurance companies require you to store or lock your car in a garage or shed when you are not using it. If you leave it unattended in a parking lot, you are unlikely to get an insurance policy. Similarly, if the car has obviously suffered the effects of the weather, it is doubtful any classic car insurance company will agree to insure your car. It also may be difficult to find an antique car insurer if you have modified your car. Most insurers will demand that your car have an excellent appearance and operation.
Before you start to contact insurance agents, gather all the information on your antique car. You may be asked a number of questions, such as the availability of spare parts and whether an appropriate auto body shop to service one’s vehicle is in your vicinity, in addition to inquiries about your driving record and habits.
If you want the best deal, you will ask insurance agents about discounts on premiums available to collector car insurance owners. Each insurance company will offer its own variety of discounts which also depend on the type of car you are insuring and your driving record. The insurance agent will expect a clean driving record with no traffic violations. The better your driving record, the more likely you are to be offered a discount. If you have installed special security or safety features such as antilock brakes on your car, you also are more likely to receive a discount. A few classic car insurance companies will increase the value of your antique car periodically to cover inflation.
You will be given a choice of valuing your classic car in a stated-value or an agreed-value policy. Most likely, an agreed-value policy will be better for your situation. This type of policy guarantees that if your antique car is destroyed, you will be paid the full listed value or that minus the deductible. It is an amount that both you and the insurance company have agreed on for your antique car before finalizing the classic car insurance policy. Before renewing your policy you will do well to review that policy for changes in the value of your antique car. The stated- value policy establishes a maximum amount the insurance company will pay when a claim is filed. The problem here is that the true value of the car is not addressed.
Another factor to be aware of are the market forces that strongly affect classic car insurance companies and the collector car market. You always will want to keep tabs on any change in valuation of your classic car. Make sure you review your situation and your insurance policy at least annually. It would be wise to draw up classic car insurance plans for regular maintenance and review of requirements and quotes.