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. You will need to protect your investment with the right collector car insurance policy. 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. Three of the major requirements are limits on miles driven per year, age and driving record of the owner and the age of the car. Additionally, an insurer will insist the vehicle be secured in a garage when it is not in use.
In most cases, the insurer will not permit more than 5,000 miles per year, although some companies may offer an excess mileage addendum. 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.
Collector car insurance policies also have a requirement on the age of the vehicle. Most insurers have set 15 as the minimum age for a collectible car. A few insurers define a collectible car as being more than 25 years old and in rare circumstances as much as 35 years.
In order to qualify for collector car insurance, a driver must meet certain qualifications as well. 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.
Once the conditions for the collector car insurance is achieved, you and the agent will set an agreed upon value for the vehicle. 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 classic car insurer agree upon will be the replacement value of the car should it be a total loss.
Selecting a well qualified insurance company for your collector car insurance is a necessity to protect your investment. Several companies specialize in the writing of collector car insurance policies, and it is best to choose one of these providers as opposed to selecting any insurance company. You will find it is the best policy for your investment
Filed Under Car insurance