What you need to know about classic car insurance
So you've decided to purchase a classic car maybe a 1964 Pontiac GTO or a 1969 Chevrolet Camaro you're planning to get a fixer-upper and restore it to its old glory. Maybe you're an investor and you think you can buy a vehicle and then sell it for a profit. Perhaps you have plans to enter a classic car competition.
However you plan on using your classic car, it's important to make sure it has the right auto insurance coverage.
Regular car insurance usually covers automobiles used for daily activities. These vehicles are used daily to go to the store, work or home and need basic auto insurance policies which includes comprehensive or collision coverage to pay for damage sustained in an accident or a theft. For an older vehicle, you might forgo these coverages since the vehicle might not be worth the cost of repairs.
Classic cars, with their rarity and favor among collectors are worth more than just any old car, this is why you need an appropriate collector car policy. Some collector policies may require that you only use your collector car as a showcase piece - and not as your daily driving vehicle.
Guidelines when buying classic car insurance
Understand that this is speciality coverage and, as such, auto insurance companies may make extra requests when setting up your policy. They may apply certain restrictions on mileage and activities per year. In addition, how you use the vehicle may come into play.
Your classic car insurance coverage may only be in effect during certain events or situations, such as when you're showing the vehicle at a car show or driving in a parade. You also may be required to transport the vehicle via an enclosed trailer rather than drive it to an event.
Be aware of certain terminology, and ask that your insurance company explain things in a careful and concise manner to avoid confusion. For instance, normal cars are insured for Actual Cash Value - the "book" value that depreciates with age. Classic cars might be insured for their Stated Value or Agreed Value. In those cases, you would state a value for your car and your car insurance company would agree to pay up to that amount.
As with regular auto insurance, it's wise to shop for different car insurance quotes to find the policy that fits your needs. You also might want to consider seeking out coverage that allows for flexible mileage limits, extends coverage for restoration or shipment periods or allows you to use your own mechanic for repairs.
Insuring classic cars requires additional research and the guidance of your insurance company. Get a quote on classic car insurance today with 21st Century Insurance.