Everything You Need To Know About Insuring a Classic Car
Vintage cars are invaluable assets. Maintaining their worth and securing their value is quite a complicated process. One sure way to go about this is to get insurance for your vehicle. Naturally, insurance covers for such classic cars markedly differ from those provided to “regular” vehicles.
Picking the right insurance company to cover your vehicle can be puzzling. Thankfully, we are here to help out. This article explains all you need to know about getting an insurance cover for your priced asset.
What is Classic Car Insurance?
Firstly, we need to define what a classic car is. According to the Insurance Information Institute, a car qualifies as a classic one if it’s at least 25 years. So per definition, classic car insurance is a specialized insurance policy for a car older than 25 years. Such vehicles are treated as a rarity. In addition to the age distinction, there are other differences between this policy and that of regular cars. One of the key differences is that it covers the full value of your vehicle.
Typically, regular policies use factors like age, depreciation, and mileage in calculating worth. With classic cars, the age is already known. Its rarity also gives it leverage. Hence it’s easier to offer coverage for the full value of the vehicle. It’s important to note one thing, though. The value of your car won’t be dependent on how much you bought it. Even if it’s a recent acquisition. A third-party appraiser usually does the valuation of the vehicle.
Classic car insurance policies usually offer expert replacement of non-functioning or old parts. These replacements are usually difficult to find and expensive on the open market. Having this option gives you ways to upgrade your style.
Benefits of Classic Car Insurance
Taking a classic car insurance policy comes with numerous advantages. These include but are not limited to:
- They offer the full worth of the car as a claim: You can negotiate for tailor-made coverage. For example, you can insert clauses for specialized repairs for car parts that get damaged in situations other than a vehicle accident.
- Maximum payout remains the same: There is no decrease over time on the maximum payout of the agreed value of your vehicle. To perfectly understand this, we need to contrast it with the situation of a regular car policy. Let’s say, for instance, you get a policy this year for your Hyundai Santa Fe 2020 model. If there’s damage to the car in 2025, the maximum payout will decrease. This is because the value of a 2020 model would have fallen over time.
This situation doesn’t apply to a classic car policy. If the maximum payout is $100,000 right now, in 2025, it will still be $100,000. In certain instances, the value may even go higher. This is because your vehicle is now rarer.
Eligibility for Classic Car Insurance
Eligibility for classic car insurance varies. However, there are various criteria used in determining if your vehicle qualifies. The ten most pertinent ones are:
- The vehicle should be in good working condition.
- The car must be either a modern muscle vehicle, a modified one, or an exotic one.
- The vehicle shouldn’t be used for daily commuting.
- The vehicle should have a limited annual mileage determined by the insurer. This is usually 7500 miles.
- The owner should possess and use other vehicles for regular daily commuting of person and goods.
- The vehicle must be parked in an approved secured structure. This may be a garage or some other specialized storage facility.
- The car shouldn’t be used in driving or racing competitions.
- The driver should be at least 25 years (might vary depending on country/state).
- The driver must have an excellent driving record.
- The driver should have at least five years of driving experience. The number of years is stipulated by the insurer. Some insist on more than five. Some insist on ten. The range though is 5-10.