People buy classic cars for many reasons. Some may have always wanted to own a 1969 Chevrolet Camaro or a 1964 Pontiac GTO because they fell in love with them. A few people love the idea of buying one of these beautiful automobiles and restore them to their full glory. Some investors in antique autos are always looking for bargains and make profits as they will only get rarer and rarer and increase in value. Another idea is to buy them so that you can enter into competitions and take part in classic car rallies.
Whatever your intentions, you need to make sure that your classic auto is insured for the intended purpose, at the right valuation and with acceptable terms and conditions. It may take a little extra care to arrange the best policy. But it is not something that is rare or hard to find in the market.
Here are 10 things you should know while insuring your precious, unique and valuable automobile.
- You Will Probably Need a Specialty Policy
Unfortunately, you cannot buy a standard policy for these vehicles and be done with it. It is best to arrange specialist coverage. If not, you need to make adjustments to a standard policy to meet your needs. You should also make sure that possible claims are handled by specialist claim handlers or departments. You don’t want to waste hours trying to explain to a keen claims adjuster that your car should be repaired by your chosen mechanic. The good news is that quite a few insurers provide coverage for these vehicles.
- They Are Not Regular Cars
Regular auto insurance policies cover daily activities of commuting to work, going to shops, taking children to school, making social calls and taking family road trips. These cars are not suitable to meet your daily private transportation needs and not used for this purpose. You would probably have restrictions as to where and when you can drive them as well as limitations of yearly mileage. You can still find policies with flexible mileage and usage conditions depending on the type of auto you want to insure.
- They Are Not Any Old Vehicles
When you have an older automobile it may not be worth insuring it at all due to its low valuation. However, classic cars will be more valuable when they are older. Therefore they should be insured for their “stated or agreed value” to safeguard your investment in them.
- Some Collector Cars May Not Be for the Roads
You may have further driving restrictions with some rare and collectible autos. They may be allowed to be driven in shows and rallies but you may have to arrange special transportation for them to be taken to those shows. In other words, you may not be able to drive them to those shows or for any other fun activities on public roads. You need to check the special conditions on your policy.
- You May Be Able to Insure Them While Being Restored
You should make sure that they are insured the moment you paid for them. There are insurers and policies that cover them during the restoration process. This will make sure that your asset is protected even when it is being worked on in a private repair shop. They should also be covered while they are in transport. Discuss your requirements with your carrier or broker in detail.
- Classic Car Insurance Is Usually Cheap
Quite a few of collectors cars are not fit for the roads as they don’t have modern safety features and some of them may not even have seat belts, forget about airbags. Even highly modified ones may not be as comfortable as modern cars. This may seem to be an issue in terms of insurance as well as their high price valuations.
However, they are not regularly driven and this offers a huge comfort for insurers. As long as you agree not to drive them more than certain miles a year (about 2000 miles usually) you should be able to find cheap classic car insurance coverage. If they are mostly sitting in a parking garage the risks of accidents and theft is pretty low. Hence you shouldn’t be scared about having to pay high premiums.
- Classics and Collectables Have Unique and Rare Parts
They cannot usually be taken to any garage and get repaired. Your insurer has to understand and agree that these unique and special auto parts will cost them more money to find and fit. Your policy should have provisions to allow getting your vehicle repaired the way it should be in order to keep its value. Watch out for any part or repair restrictions after claims.
- Definition of Classic Cars Can Be Wide
Definition of a classic automobile for the purpose of insurance can be wider than you think. Antiques, classics, muscles, exotic and special interests, street rods, modern classics, trucks, low riders and high value replicas may all be considered suitable for collector car insurance.
- Special Coverage, Conditions and Policy Terminology May Apply
Owners of these vehicles should seek special coverage, be aware of additional conditions attached to their policies and different terminology in them. Mileage and usage limitations are the obvious ones to look out for. Terminology may be different as well and owners should familiarize themselves with them. For example, typical autos would be insured up to their actual cash “book” value at the time of a claim. On the other hand, classic autos should be insured on “agreed value” bases that require this figure to be determined at the time of policy set up.
10. You Can Shop for Better & Cheaper Classic Car Insurance
They may require special coverage and careful consideration. This may make you think that it is harder to find coverage for these automobiles. You should know that most reputable traditional insurers offer special packages for classic autos as well as a few specialist underwriters. As discussed above you might as well seek out coverage that allows for flexible mileage limits, extends cover for restoration and shipment, and use of own mechanic for repairs.
In the same time, you would love it if it is affordable as well and therefore why not look for the best priced policy. You certainly have options. You should get a few quotes from specialist brokers, underwriters and traditional insurers and compare them.