As soon as you purchase a classic or vintage car, look into buying the proper auto insurance, a policy specifically designed with you in mind. Unlike modern automobiles, your classic car may qualify for less expensive insurance as opposed to traditional insurance products because of the fact that these vehicles are driven less frequently. Before purchasing a classic collectors insurance policy it may help to consider some of these simple suggestions.
Discuss areas where the policy provides benefits
Some insurance companies will only cover classic cars if the principle driver has five or more years of experience on the road. Some policies, citing liability concerns, may prohibit allowing anyone with less than the required experience to operate the vehicle.
It can be a daunting task tracking down parts for your vintage car. The process of reproducing some of the older parts may add significant costs, or time delays, to a vehicle’s repair as well. Some insurance companies may offer parts location services. Ask how the insurance company will pay for, or assist in the process for repairing the vehicle.
Most standard insurance policies cover a vehicle’s actual cash value, which means the value is depreciated and the owner pays a deductible. Other policies are designed to pay the stated value, which may come from other sources and may therefore be less than the actual value of the car. This process leaves less for repairs in the case of any major damage or a total loss.
An “agreed-upon value” means the policyholder and the insurer have reached an understanding of the cars actual value and what the insurer will pay. Have the vehicle appraised prior to purchasing an insurance policy.
Certain policies cover appreciation
Classic cars, unlike modern vehicles, often gain value every year. Look for an appreciation clause, review the contract annually, and have the vehicle appraised every 2-3 years to make sure the insurance policy covers the vehicle’s current value. Make sure to read the fine print of the policy’s terms, as some products may limit the number of miles the vehicle may be driven annually. Others cover driving only during certain times of year (i.e. seasonal policies), or cover vehicles properly stored and protected from harsh weather conditions or the threat of vandalism, and are kept in a garage.
Speak to an agent about classic collectors insurance for help with purchasing this important coverage.