Classic Cars Need Different Insurance Coverage Than Camrys
June 19, 2008 – 11:47 pmMaking a choice of a car insurance company for your specialty car can be a hard thing to do. The car insurance industry gives you sometimes conflicting information about policies and coverage. Specialty insurance coverage can be had for a lower rate over a normal insurance policy, but you need to understand its limitations. It’s important to do your homework to make sure you’re getting the best deal possible.
Some of the important things you need to know about choosing car insurance:
- How many miles do I plan on driving each year?
- What’s my acceptable risk in the case of a claim?
- Do I want to drive my classic car every day?
- How difficult is it to find parts in the case of a repair?
- Do I need a local agent?
Mileage is an critical point for classic car insurance companies. They offer insurance coverage for your classic car at a reduced rate because they require that your usage is limited. The average classic car insurance company allows for a cap of 2,500 miles per year driving for their insurance plans. The limited driving means a limited amount of exposure for the insurance company. Some companies, such as Hagerty, offer unrestricted driving privileges but impose other limitations, such as no driving to work or daily driving uses.
Classic Cars Are Expensive to Insure
Standard insurance coverage typically pays for repairs based on the industry standard prices established for your vehicle. This rate assumes the parts are readily available and can be purchased by standard processes. They are unable to guarantee that your 1969 Ford Mustang will be repairable with NOS parts, as these are only available in limited quantities. To ensure your collector car is covered completely for any damage is to purchase stated value insurance. Stated value insurance allows you to set a price to the value of your car, and in the case of a claim you can be sure that your vehicle is covered for damages up to that amount. This is ideal for rare vehicles or cars that are of special value.
Classic Cars Shouldn’t Be Driven to Work
Insurance companies that cover specialty car typically ensure that you have another vehicle to drive on a daily basis. They do this because they don’t want you driving your collector car to work every day. This is because they mitigate their risk by limiting your mileage. Many companies give you a clear limit to how many miles you can drive. Others simply have rough guidelines.
Rare Cars Are Expensive To Insure
Some vehicles are collectible because of their rarity. Standard insurance policies will not cover sourcing original New Old Stock (NOS) parts for a specialty car. They’ll only use generic replacement parts. This may effect the value of the vehicle when it comes to resale value.
Be certain you understand the importance of picking the right insurance company for your vehicle. Sites like Classic Car Insurance Reviews and Classic Car Insurance Tips are great places to start your research. Find out what’s the best choice for your needs before you take to the streets this summer.
Tags: Insurance
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