Classic Car Insurance

When buying insurance for your classic car, there are three things to consider in regards insuring of the vehicle. Actual cash value, stated value and agreed value. Actual cash value is the normal way that insurance companies insure the car; it is based on replacement cost minus depreciation. It is agreed value you are looking for when insuring a classic car. The company insuring the classic car settle on an agreed value with the car owner. A contract is signed with both parties agreeing on the price and then, if the car is stolen or totaled, that price is paid to the owner from the insurance provider. It is important to know that your typical car insurance company might not be the best one to insure your classic car. They sometimes put such restrictions and high prices on their insurance; it is worth your while to look at companies that only insure classic cars.

A set of conditions is usually required by most classic car insurance companies. They can include 10 years or more driving experience, a spanking clean driving record, no teen aged drivers or poor driving records, proof of garage or secure location, even sometimes the age of the car, some are too young to be considered “classic”.

There will be mileage limits on classic cars, although, you won’t want to expose your particular baby to the elements and traffic anyway, I am sure your insurance company agrees with you on that.
If you drive your car to car shows in other cities, or drive to the grocery to pick up a loaf of bread and bottle of milk, or even if you just want to cruise through your town on a beautiful summer day your insurance company will need to know that.

Some cars might require some “work” or restoration and special maintenance. Make sure to let your insurance provider know about any work you are doing on your classic car so that they can give you the proper amount of insurance to cover you.

The companies that insure vintage cars deal specifically with just that type of car. Some of them are really major companies and they provide professional services for car collectors. Specialty car insurance can get full market value coverage and for less than a traditional car insurance company.

There will be conditions to consider, check with all the insurance companies to decide which one is best for you.

By : Lawrence Reaves