Classic Car Insurance By Jeff Foote
You can insure a classic, antique, collector, or custom car the same way you insure any other vehicle. However, many classic car owners end up regretting this decision if their vehicle is totaled. Why? Because when your classic car is declared a total loss by a standard auto insurance policy, you will receive the actual cash value of your vehicle, which in most cases will be quite low and won’t leave a smile on your face.
There are far better auto insurance policy options for classic car owners; however, you often have to meet certain criteria to apply for them.
You must have a minimum number of years of driving experience You cannot use the car for business purposes You must prove that you have another car that you use regularlyYou cannot drive the vehicle over a set number of miles per year
The automobile must be a certain number of years old
If you meet these criteria, then you may be able to purchase classic car insurance. However, not every auto insurance carrier will insure classic cars. When you find a carrier that does, the cost is usually less than what you would pay for a ‘normal’ vehicle.
The preferred type of auto insurance policy for classic cars is an agreed value policy. Before you buy a policy of this nature, you must sit down with an agent and concur on a value that will be paid in the event that your vehicle is totaled. Your agent will also give you a quote for this type of policy. So, if you are in an accident and the damages to your classic car are less than the agreed value, your insurance provider will pay for the repairs. If the cost to repair your vehicle is greater than the agreed value, you will receive your preset agreed amount. This is without question the preferred auto insurance policy for a classic car