Guide to Classic Car Insurance
Posted: Wednesday, May 27, 2009
by Jami Wright
If you have bought and restored that classic car that is sitting in your garage, chances are you are very close to that car. The hours of labor alone, to make that car brand new, were most likely countless. The fact is that while your labor of love looks brand new, it is not. The tough part is finding the right classic car insurance that will keep her safe or at least cover the repairs if an accident happens.
The major difference between modern and classic car insurance is the amount that is paid to you in a claim when the car is totaled. Usually the causes of these "write offs" are fire damage, stolen, or accidents. The amount paid to you as a modern car owner is standard or actual cash value (the amount the car is worth if sold today in good condition). If you own a classic car insurance policy the amount paid out for "totaled" cars is the previously agreed upon value when signing the contract.
Factors that go into coming up with this agreed value are a professional appraisal and negotiation between you and the insurer before the contract is signed. This means that the car will never go down in value, unlike the modern cars that depreciate in value the moment they leave the lot.
Another big plus to classic car insurance is that you usually don't have to pay a deductible if a car is written off. With modern cars there is almost always a deductible involved before the insurance company will even start paying off the value of the car. These deductibles can range from $500 to move than $1000.
What makes the car a classic in insurance terms?
There are special rules governing what makes your car a classic in the insurance world. If the car was built from 1900 to 1969 you will most likely be able to purchase the special insurance for classic cars.
However, the car may not be considered a classic if it is being driven every day. This insurance policy usually only covers restricted usage of classic cars. Some insurers even ask you to have another car on file or under an everyday use policy to insure this car is not being used on a daily basis. Another clause is that the classic car needs to be stored in a locked storage facility or garage when not in use.
What else should you know?
Other things to keep in mind when choosing a classic insurance policy are; who will do the repairs (you or a shop), will you be doing shows (if so you may need liability and property damage insurance as well), and will you be shipping the car overseas. It is important to discuss these topics as well with your insurance professional to make sure you have the right classic car insurance.
Conclusion:
Owning a restored classic car should be an enjoyable experience. It is also important to keep in mind that there are so few of these types of cars on the road anymore that they are a treasure and should be protected as so. You took your time in restoring the car; take your time in picking out the right classic car insurance. This way you can continue to enjoy the feeling of being a classic car owner.
This Article has been viewed 239 times. (Not updated in real-time.)
Top-level comments on this article: (3 total)Hi Jami.Thank you for writing this very informative article. I enjoyed reading it.Best regards,Nenita
Hi Jami, You are a wealth of helpful information. keep sharing. I enjoy reading and learning about things I normally wouldn't look into on my own.Excellent! Blessings to you, Teresa
Cars, car insurance, policies, the only interest this subject holds for me is a reminder to renew my car insurance. Got to stay legal if I intend to keep driving. Too much unnecessary information.
We want your comments! If you can read this, you don't have javascript enabled, so you can't use this comment system. Please enable javascript.