Classic Car Insurance
The term classic car is a term that covers many genres of cars. Most states in the United States have their own definition of what a classic car is. Most states define a classic car as a motor vehicle, originally built and not a reproduction, manufactured at least 20 years prior to the current year, which has been maintained in or restored to a condition that is substantially in conformity with manufacturer’s specifications and appearance.
Classic car insurance is designed especially for classic and collectible cars. The insurance takes into account the age of the car as well as the value of the car. The value of a classic car, in some cases, is more along the lines of the value of a house. Classic car insurance is not only based on value, but it is based on mileage and usage as well. A classic car is typically not a general use car and the classic car is maintained more as a hobby. They are used for show, often displayed at classic car shows as well as driven in parades and other special events.
Classic car insurance typically has a mileage plan that specifies how often the car is driven. If the car is driven beyond the specified mileage, the car may not qualify for classic car insurance. Insurance for your classic car includes towing in the event of a breakdown, 24 hour road side assistance, tire change in the event of a flat tire, fuel refill in the event of running out of gas.
Such insurance also includes agreed value coverage. Since there is no Kelly Blue Book value for a classic car, the value of the car can be negotiated. The owner and the insurance company will agree upon the value of the car based on comparable make and models and the amount of documented restoration work that has been put into the car. Some classic car insurance companies will offer an automatic inflation factor every quarter to make sure the value stays current.
One of the major benefits of classic car insurance is the replacement of parts. Parts on a classic car are usually very expensive or rare and hard to find. In a lot of cases classic car parts are both expensive and rare. Classic car insurance also takes into account that such cars are not taken out in periods of bad weather so the car may stay garaged for the winter or long periods of time, resulting in a rate reduction for the time of non use. Regular car insurance does not take that into account.
Before choosing your classic car insurance, check the coverage very carefully. Make sure it covers the value of your car as agreed, if you have an agreed upon value. Check to see if there are any qualifiers such as a maximum amount the policy will cover for the cost of the parts. Does your classic car have to be housed in a locked garage and does the garage have to be heated in the winter. Also, be sure to know and understand the claim procedure and time frame involved.