Acquiring Classic Car Insurance
If you have spent the time and money to restore a classic car, you should probably take the time to acquire some classic car insurance. Classic car insurance plans vary widely based not only the value of the car itself, but on how you use the car itself. Insurance companies want to know what kind of risk you're putting the car in before they provide full coverage for a potential loss.
Accidents, as you know, can and do happen to even the most careful drivers. Jerry Seinfeld, one of the biggest classic car collectors in the world, was not long ago involved in a fairly serious accident when the brakes failed in one of his cars. Although Seinfeld was uninjured, the car he was driving took what was most likely a very expensive beating.
When approaching a classic car insurance company, keep in mind that how much you intend to drive the car is a major factor in determining your future premiums. The average mileage a classic car insurance company is going to give you is probably going to be around 5000 miles a year. The more you drive, the premiums will increase quite rapidly.
In addition to how much you intend to drive the car, there are also the standard insurance considerations. Driving record and age are of course key factors in acquiring insurance and in the cost of that insurance.
A classic car insurance company typically classifies a car as classic if it is more than 15 years old. Cars made in or before 1970 are usually considered to fit the true classic categorization. Anything made in the 1930s or before is considered a vintage production and classic car insurance is probably going to be very expensive.
When negotiating a value for your car, be sure that you understand all the terminology that the classic car insurance company is using. Classic cars are probably not going to have a convenient blue book value, and even if they do, all the modifications would make that number fairly irrelevant. Classic car insurance companies may use the term "stated value" or "agreed value" with the idea that these terms actually have different meanings. Make sure you understand what the classic car insurance company's meaning is behind these terms before you agree to anything.
Also keep in mind the various restrictions the classic car insurance company may place on you and how you use your car. A classic car insurance company may only want you to drive your car to trade shows and back. Some carriers may have very specific requirements when it comes to vehicle storage. This may be more of a hindrance than you might think. If you are traveling to a trade show, where will you park the car? Most classic car insurance companies are going to frown on leaving the car outside in a hotel parking lot. This can introduce quite a bit more planning into an otherwise simple trip.
In the event of any damages occuring to the car, your classic car insurance provider may have specific requirements as to where you can take the vehicle for repairs. Some providers may also require you to take the lowest bidder on repairs. It pays to know beforehand how your classic car insurance provider handles any claims. You should definitely ask them about repairs, but also do some outside research on the company. The internet is a great resource for finding out more about how a classic car insurance company is going to treat you in the future.
Another potential issue with classic car collectors is how parts and unassembled cars are handled. If a car is in pieces, how will it be handled if someone were to break in and vandalize the vehicle? This is an important factor to consider. If you buy a new part for the car or otherwise further modify it, how will that be handled if something should happen to that?
Above all else, don't put your classic car on your regular car insurance. This is a very bad idea and will end up inadequately protecting your vehicle in case of an accident or theft. It's also very important to do some homework on a classic car insurance provider before going with them to make sure that they are a reputable organization that will fulfill their obligations when the need arises.