Owners of collectible cars have a great deal of pride in their vehicles, however a collectible car is more than a showpiece, it is an investment as well. As with any investment, an adequate protection in the form of collector car insurance is necessary. As collectible cars are quite expensive to replace or repair, a collector car insurance policy will protect your investment against possible damage, theft, or accidents.

A regular insurance policy will not offer the specialized benefits of collector car insurance. Insurance companies have several requirements before they will underwrite a policy to cover your collectible. The most important requirements are the drivers age and qualifications, the age of the car, and mileage limitations. Additionally, an insurer will insist the vehicle be secured in a garage when it is not in use.

Mileage limitations may vary from company to company, generally the limit is 5000 miles per year. However, there are some cases where more miles are permitted. The mileage driven is limited to car, hobby, and show activities for the most part; collector car insurance policies do not permit driving the insured vehicle for commuting or commercial activities.

Restrictions on the vehicle’s age are a primary factor in collector car insurance policies. The majority of companies require the car to be at least 15 years old. Some insurance providers require as much as 25 years and in a few cases more than 35 years old.

Collector car insurance companies will require certain driver qualifications before a policy can be issued. The overwhelming numbers of insurers require a minimum age of 25 with at least 9 years of driving experience. Some providers also require a clean driving record.

After the requirements of the collector car insurance is met, your agent and you will determine an agreed upon value of the car. Unlike a regular car which has its value set by automobile industry standard practices such as a blue book value or fair market value, you are permitted to determine the value of the car at the time of the writing of the policy. The amount you and the insurer agree upon will be the replacement value of the car should it be a total loss.

It makes good economic sense to find a reputable collector car insurance company to cover your prized possession. However, choosing a company that specializes in collector car insurance will give you the best coverage and maximum benefit.

Filed Under Car insurance
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