classic car insurance
Classic cars require a special type of insurance usually referred to as classic car insurance by the industry. This special insurance is non-standard and affords the owner of a classic car optimum coverage for his investment. However, classic car insurance providers have certain qualifying factors before a policy for your vehicle can be underwritten.
For the most part, a classic car is defined as 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. In addition to the age of the vehicle, insurance companies will require several other conditions to be met. 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. As part of your classic car insurance, the company will also stipulate an ‘agree-upon’ value .
The majority of states permit the insurance company and owner to arrive at an agreed value of the vehicle. The insurance company and you will set a value on the classic car that will become part of the policy. This agreed value is the monetary amount that the classic car insurance will cover in case of total loss. This is much different from a standard policy in which total loss is determined by fair market value or the blue book value.
In regards to the age and experience of a driver, most companies will require a driver be at least 25 years old and have a minimum number of years driving. Naturally, the insurer will also request a DMV report before writing your classic car insurance policy.
An annual mileage limit is usually required by the insurer, in most cases this limit is 5000 miles. There are also options to select less miles (as low as 1000) which will reduce your premium amount. In many cases the insurer will not restrict your use of the car to drive to car clubs, classic car events or car shows, they will restrict your use for commercial purposes or daily commuting.
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.