Classic Car Insurance – Get the best one for your classic car.
Unlike the run of the mill car insurance, classic car insurance has slightly different underwriting requirements. It is strongly advised to go to an insurance company that specializes in classic cars. When purchasing classic car insurance, here are a few things to look out for valuation. Unlike the valuation used for your mini-van, there are several types of valuation available for classic cars. Actual cash value the insurance company will use value of the car less depreciation. This valuation works well for your mini-van, but if your car is a highly valued classic car, this may not be the way to go. If your classic car is in excess of 20 years old, depreciating it is current value will leave you falling far short of the vehicle’s true value. Stated amount in essence this sets the maximum amount a classic car insurance policy will pay in the event of a claim. It will pay the least amount of either 1) Stated amount, or 2) the cost to repair the vehicle (but will not exceed the stated amount), or 3) the actual cash value. This type of valuation might not be the best way to go, because it does not address the true value of your classic car. Agreed value as it sounds, agreed value is an amount that both you and the insurance company agree is the fair current market value of the vehicle. This amount is agreed upon prior to the policy inception. Each policy year this value is reviewed as the value of the vehicle may fluctuate from year to year.
Make sure your classic car insurance provides coverage for the way you use your car. Do you drive it only to and from antique/classic car shows, or do you occasionally take it out to do errands. Let’s face it, there is a ‘show me off’ quality to antique cars that just driving them to and from car shows may not satisfy. Insurance companies take this exposure into consideration when underwriting a classic car insurance policy, so before you take your beauty to the store for a gallon of milk, make that such a trip is covered.
Find out how your insurance policy responds to vehicle storage. Some policies require the car to store securely in a garage when not in use. Many do not provide coverage if the vehicle is left unattended in a parking lot. Taking it for a long spontaneous drive to air it out and finding yourself too tired to drive back might pose a problem. An overnight stay at a hotel while your vehicle is in an outdoor, unattended hotel parking lot might not be covered. For your own protection, check with your policy before taking such a spontaneous trip.