People frequently seek insurance to protect the items they collect. This is especially true for people who collect antique and classic cars. When purchasing car insurance, collectors look at specific aspects of the coverage. The overarching concern is to maintain the value of the car at all times. Insurance helps protect the investment of money put into restoring and maintaining antique and classic cars.
DEFINING ANTIQUE AND CLASSIC CARS
There is no unifying definition of “antique” for insurance purposes. It is not unusual for insurance providers to establish specific guidelines for this group of cars. Some may actually lump antique and classic cars together as collector cars.
A car is determined to be a “classic” from an insurance standpoint if the vehicle is at least 20 years old. Furthermore, to qualify for classic car insurance, the vehicle must contain all original parts from the time it was originally manufactured and be in good shape. Otherwise, standard auto insurance is sufficient for older cars.
CLASSIC AUTO INSURANCE
If you actually drive your classic car, even infrequently, your insurance premiums will be higher. The primary reason for this is because older cars have fewer safety features that make them higher risks for insurance companies. Classic auto insurance is very different from standard insurance. While each insurance company has individual qualifying requirements, there are several aspects that most policies have in common.
Your coverage will limit the number of miles you can drive your car each year. The intent is to reduce risk. You will be allowed to drive the car to events such as car shows. Leisure driving should be kept to a minimum. To make sure you meet this requirement, you may have to prove you own additional vehicles for everyday use and have standard insurance on them.
Classic cars that have been modified in ways that increase risk may not be covered. The insurance company will even have a say in how and where you store your classic car. Your car must be protected adequately when not in use. High-risk drivers may find it impossible to secure classic car insurance if they have had violations within the past five years.
Most collectors prefer insurance coverage with an agreed value option for claims. This means that you and the company will mutually determine the value or worth of your classic car at the time the policy is being developed. This reduces the likelihood of disputes if something happens to your car.