Classic car insurance is a specialized insurance instrument designated for certain cars. This special insurance is non-standard and affords the owner of a classic car optimum coverage for his investment. However, classic car insurance providers have certain qualifying factors before a policy for your vehicle can be underwritten.

In large part, insurance companies define the age of a classic car as one that is at least 15 years old. Some states have a wider definition of 25 years, so a check with your department of motor vehicles would be a first step to determining if your vehicle qualifies as a classic.

Since classic car insurance differs from regular car insurance, the providers of coverage will require a stricter set of rules on a classic car. In addition to the age of the vehicle, insurance companies will require several other conditions to be met. Those conditions will be a limit on the number of miles driven in a year, keeping the car securely stored when not in use, and limitations on the age of the driver and their driving experience and record. In addition the insurance company will negotiate an ‘agreed upon’ value for your classic car.

State laws, although they vary, allows a negotiation between an insurance provider and insured to agree on the value of the classic car when the policy is written. The insurance company and you will set a value on the classic car that will become part of the policy. In case of total loss, this is the amount the insurance company would pay as value of the classic car. This protects you from receiving a nominal amount as in the case of a regular policy which will use fair market value to pay for total loss.

In regards to the age and experience of a driver, most companies will require a driver be at least 25 years old and have a minimum number of years driving. Of course, an insurance company will also check your driving record prior to issuing a classic car insurance policy.

An annual mileage limit is usually required by the insurer, in most cases this limit is 5000 miles. Some providers will allow you to choose a lower annual mileage, which may lower your monthly premiums. Driving your classic car to shows, club events and classic car activities are generally not restricted, however daily commuting and commercial use is prohibited in most cases.

Finding suitable classic car insurance is best handled by using a company that specializes in such insurance. Generally you will receive a better rate and the company will have a better understanding of your needs as well.

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