Insuring Classic Vehicles
If you are the owner of a classic vehicle, you know the importance of maintaining the quality and welfare of your collectible. Whether it is a lifelong passion or a recently picked up hobby, you must know the advantages of insuring your vehicle the correct way. Unlike traditional car insurance, which bases rates on the actual cash value of the vehicle, classic car insurance provides coverage for an amount agreed upon between the owner and the insurer. Classic car insurance can also help finance the specialized repairs or replacement parts needed to fix damage caused to a classic vehicle. The restoration required for classic cars can be quite difficult, but the right insurance can help in the process of keeping your special vehicle intact.
Classic Car Insurance vs Regular Car Insurance
While regular car insurance can provide similar benefits to classic car insurance, it may not cover the full value of the vehicle. Regular car insurance determines value by a vehicle’s age, mileage, and overall depreciation, but if a classic car has been restored, it may be worth much more than the average evaluation. Additionally, since regular car insurance covers frequent driving, the premiums will generally be much higher to reflect the risk sharing. Because a classic car is driven far less frequently, the premiums are often significantly lower.
Vehicles covered under classic car insurance may not be used as a primary driving vehicle, and will therefore be given mileage restrictions on its use. Most classic vehicle owners limit their usage to the occasional recreational drive or car show, as many insurers will not cover a claim if the vehicle is used to drive to inappropriate destinations. Additionally, many carriers require:
The policyholder to be at least 25 years old
A good driving record of at least 5-10 years
The vehicle to be in good shape
The vehicle to be stored in a secure, enclosed structure, such as a garage or storage unit
The use of another vehicle as your primary transportation
For additional benefits of a classic car policy, contact Danskin Insurance Agency to find out more. Whether buying new or renewing your insurance, we can help you sort through your options and coverage choices.