Special Classic Car Insurance
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Owning a classic car may require you to purchase a special type of classic car insurance. This specific type of coverage will give you special protections not available in standard car insurance. Nevertheless, before a policy can be written, your automobile muct qualify under the providers classic car insurance requirements.
In most cases, a classic car, as defined by the classic car insurance industry is one that is more than 15 years old. However, a few states define a classic car as 25 years or more, checking with your local DMV may help to clarify the age in your state.
Since collector car insurance differs from regular car insurance, the providers of coverage will require a stricter set of rules on a classic car. In addition to the age of the vehicle, insurance companies will require several other conditions to be met. Those conditions will be a limit on the number of miles driven in a year, keeping the car securely stored when not in use, and limitations on the age of the driver and their driving experience and record. Furthermore, the insurer will want to set an ‘agreed upon’ value for the vehicle .
The majority of states permit the insurance company and owner to arrive at an agreed value of the vehicle. The insurance company and you will set a value on the classic car that will become part of the policy. This agreed value is the monetary amount that the classic car insurance will cover in case of total loss. This protects you from receiving a nominal amount as in the case of a regular policy which will use fair market value to pay for total loss.
As far as the drivers age, most insurers will mandate a driver be over 25 and to have a license for at least so many years. A mandatory requirement as well is a DMV report before the classic car insurance is issued.
An annual mileage limit is usually required by the insurer, in most cases this limit is 5000 miles. Some providers will allow you to choose a lower annual mileage, which may lower your monthly premiums. Although the insurer will not regulate you driving the car to shows, clubs or hobbyist activities, you will be limited from using the car for many other purposes, including daily commutes, and commercial purposes.
To get the best out of your classic car insurance, find a company that specifically writes this type of policy. You will find that specialists in this field are better situated to handle your specific needs.
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