3 Things You Should Know About Classic Car Insurance

If you own a classic automobile, then choosing a good classic car insurance policy is vital to protecting your investment. Not all insurance companies understand the special needs of collectors when considering an insurance policy for a classic car. In order to help you make the best decision possible regarding insurance for your classic car, here are some things you need to know.

Consider How You Use the Vehicle

One of the most important considerations in determining what type of coverage you need for your classic car, and how much you'll pay for it, will be the way that you actually use your vehicle. If you're the type of collector that only takes your classic car to car shows, car club gatherings or for use in parades or other special occasions, you should consider a classic car insurance policy that covers damage only when going to or from these types of events. Because of the significant expense in repairing or replacing a classic vehicle, limiting the policy to provide coverage for these types of uses only will usually save you a lot of money and might actually be the only type of coverage you need.
However, if you frequently take your classic car out of the garage and drive it around town, then you might want to consider insuring your classic vehicle as a full pleasure use vehicle that you can drive anytime and anywhere you choose. The premiums will be more expensive, but the policy will offer much more flexible coverage.

Consider How the Vehicle is Valued

When considering a classic car insurance policy, you need to make sure that you and your insurance company fully understand how the vehicle's value is to be determined. One of the biggest mistakes consumers make when insuring a classic car is that of not fully understanding the actual amount that an insurance company is willing to pay if a classic car is stolen, totaled or damaged beyond repair. Therefore, make sure that you ask the agent to fully explain how the vehicle is to be valued, and make sure that you fully understand the language that is included in your policy contract regarding the amount to be paid if the vehicle is stolen or damaged beyond reasonable repair.

Policy Restrictions on Parking and Storage

You should also be aware that many classic car insurance policies have strict requirements for the parking and storage of classic cars when they're not being driven. Many policies will require that your classic car always be stored in a locked garage, and some policies will even require that your classic car be locked inside an enclosed car trailer. If you do not store your classic vehicle in accordance with the terms of the policy contract, and your vehicle is stolen, your insurance company may refuse to pay for your vehicle.

Likewise, many companies that insure classic cars may make other contractual demands such as requiring that you not leave a classic car unattended while it is in a parking lot. So, even leaving your car in a hotel parking lot overnight (while attending a car show) may become an issue if the vehicle is damaged. In order to find out about restrictions that will be included in your policy contract, you should always ask the insurance agent as many questions as you need to fully understand what is expected and required.