-
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. 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.
If you only take your vehicle out of the garage occasionally and drive it to car club gatherings, cars shows or drive it in the occasional parade, you will be able to save some money if you purchase a limited use classic car policy. With these types of policies, your car is adequately covered when transporting the vehicle to and from these types of events, but will require that you limit the use of your vehicle to a certain number of miles or for use in certain specified events only.
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 understands how to determine the vehicle’s value. 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.
When determining how much your classic car vehicle is actually worth, always choose an amount that adequately compensates you in the event of a total loss, but be reasonable in your valuation as well. A lower agreed value will always result in lower premium prices.
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.
Conversely, many classic car insurance companies will give you a modest discount just for making sure that your classic car is locked in the garage or a trailer when not in use. So, always make sure to install high quality locks on garage doors or trailers that your classic car is stored in. Also, when applying for the coverage always make sure that the insurance company knows that your classic car is always securely stored.
Compare Policy Quotes
You can visit the websites of car insurance companies like Grundy Insurance and Heritage Classic Car Insurance to get quotes on classic car insurance policies. There are other sites available as well, and you should make sure to compare quotes from as many companies as possible. When comparing quotes for classic car insurance, make sure to that all of the policy quotes provide an adequate coverage amount in order to properly protect your classic car investment.
Choose a Higher Deductible
When insuring your classic car, consider choosing a high deductible. Although selecting a $1,000 or $2,500 deductible may result in receiving a lower insurance claim payout, the amount of money you could save on annual insurance premiums may well be worth the sacrifice. Always ask the insurance agent to quote prices with different levels of deductibles to see which deductible level creates a policy that best fits your budget.
