When you want to maintain your beloved collectible vehicle, you certainly want only the best classic car insurance for it. Of course, getting the best insurance coverage does not mean buying the most expensive there is for classic vehicles. When you want the best, you can still obtain the most reasonable insurance costs by comparing various rates.
However, when you wish to do insurance rates comparisons, it is a must that you have the essential specifications of your classic car. For instance, if you have a restored muscle vehicle, you must possess the appropriate appraisal to arrive at the right insurance value. When securing an appraisal, you must present photos of the interior and exterior of the car to show the quality of the car’s restoration.
Types of Vehicles under Classic Car Insurance
Vintage – a vehicle is considered to be a vintage if it is just a few decades old. An example of a Vintage car is a 1981 model Ferrari.
Classic Cars – these are slightly older than Vintage Cars, such as the 1965 Mustang or 1956 Chevrolet.
Antique Cars – these are the oldest types. Technically, any vehicle over 25 years of age is an antique. However, the term antique car refers to those that were produced during the 1920s or 30s, like the Ford Model T or Rolls Royse Phantom.
So, what is a Classic Car?
There is no fixed, standard definition for a classic vehicle for all insurance companies. Hence, you have to be sure that your vehicle fits into the insurer’s own definition. This is a must even before you decide to ask for a quote. For one thing, there are insurance firms that consider all old and restored vehicles to be classics. Such insurers include restored street rods and similar cars in their definition.
On the other hand, there are other insurance firms that are much more detailed when it comes to their standard definition of a classic car. They require a classic to be twenty years old or even older but still retains or even increases in its value.
General Rules on Classic Car Insurance
Unlike modern vehicles, the value of classic cars increases over time. Hence, they require a specific insurance that will benefit both the insurance company and vehicle owner. Classic car insurance has special cover and payout rules that are relevant mainly to classic car owners.
Qualifying a Vehicle as a Classic Car
Any car that increases in value makes them collectible. However, because of the deterioration of the quality of cars during the 70s, many vehicles manufactured from this decade onward do not qualify as a classic car. A few types that can be considered as classic are two-door foreign sports cars, convertibles, and cars with V8 block engines.
Agreement between Insurer and Owner on the Value
Classic car insurance is based on the agreed value principles. A vehicle owner and insurance company must both agree on a value amount for the vehicle. If the vehicle is damaged or destroyed, the insurance company will pay the owner with the agreed-upon value amount. Since a classic car increases its value over time, insurers will have to reassess such value every end of the year. The two parties may also consent to increasing the value of the car at certain intervals.
Insurance companies usually recommend consulting available classic car pricing books to reach an agreement on the car’s value, especially if the owner has not done any changes on the vehicle. However, if there have been some modifications on the vehicle, or the owner does not agree with the assessment of the insurer, the owner can hire the services of an appraiser for an objective estimation of the classic car’s value.
Essential Tips When Getting Classic Car Insurance
If you own a genuine collectible car, you certainly need classic car insurance since this will ensure that you are totally covered. Here are some tips to remember in order to get the right coverage for your classic car.
1. First of all, it is a must that you inform an insurance company that you own a collectible when obtaining auto insurance quote. While, in fact, the insurer bases conventional auto insurance on depreciating value; in the case of a collectible vehicle, you have to get full coverage for your investment in your classic car.
2. It is advisable to separate any regular auto insurance with that of your classic car. This is because you are obviously not using your collectible for your everyday transportation, and so means reduced risks. Unbundling allows you to enjoy affordable coverage rates for your collectible.
3. Finally, you must verify that your vehicle is indeed a classic type from experts. Secure proper documentation stating this it is really a collectible. Never assume that simply because you own a twenty-five year old car means that it is a truly classic model. It is going to be a waste of coverage if you do not obtain the right one for your vehicle.