Owning a classic car may require you to purchase a special type of classic car insurance. Classic car insurance is not a standard type of coverage and has special protections for your investment. However, classic car insurance providers have certain qualifying factors before a policy for your vehicle can be underwritten.
In most cases, a classic car, as defined by the classic car insurance industry is one that is more than 15 years old. However, a few states define a classic car as 25 years or more, checking with your local DMV may help to clarify the age in your state.
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. The age of the driver, his driving record (with a minimum of years driving), storage of the car, and limits on annual mileage are all additional stipulations. Furthermore, the insurer will want to set an ‘agreed upon’ value for the vehicle .
Most states allow the insurer and owner of a classic car to decide on an agreeable value of the car. You and the insurance company will set a value on the classic car that will become part of the policy. The amount is the total loss value of the car in specific monetary terms. Unlike a regular vehicle, where ‘the blue book’ or fair market value determines the total loss value of a vehicle.
As for the age of the driver, most providers require a driver to be at least 25 and have at least 9 years driving experience. A mandatory requirement as well is a DMV report before the classic car insurance is issued.
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. Although the insurer will not regulate you driving the car to shows, clubs or hobbyist activities, you will be limited from using the car for many other purposes, including daily commutes, and commercial purposes.
To get the best out of your classic car insurance, find a company that specifically writes this type of policy. You will find that specialists in this field are better situated to handle your specific needs.
Filed Under Car insurance