Basic Information on Classic Car Insurance

Today’s wealthy society is becoming more involved in collecting antique cars. You could be building a classic car or purchasing the car of your dreams. Statistics show that there are millions of American classic car owners. Each year, more are added.

These collector car owners have spent a lot of time and money on their vehicles. They should search for trustworthy insurance companies that will insure them against loss or damage. A specialized program should be available with claim specialists who can provide excellent service, including the handling of claims. It should be prompt, professional and efficient in handling any claim.

Many of these people make the error of thinking that their standard car insurance policy will cover their classic vehicle. There are many discounts, extras, and essentials that can be added to your car insurance policy. These hobbyists are often passionate about maintaining and restoring classic cars. Research has shown that true automobile enthusiasts take more care when it comes to how they store, use and maintain their cars. Some insurance companies will even offer insurance rates lower than family auto insurance.

One of the peculiarities about classic cars is that they have a higher value when they are older than other cars. However, most cars lose value over time. Some insurance companies charged higher premiums and placed restrictions on its use, such as limiting it to parades, classic car shows, or organized meets. Some insurance companies even limit the mileage the car can drive monthly/yearly and the distance it can be driven from your home.

These restrictions make it necessary to be careful when reviewing insurance policies that cover classic cars. Although it may be true that classic cars are more expensive than others, such restrictions should reduce the cost of insurance. Some insurance companies will customize their policies to meet the individual needs of applicants in order to reduce the cost. They might lift the mileage restriction but restrict your use of your classic car as your primary transportation. To qualify, you will need another vehicle for daily transportation such as driving to work.

The following categories are used to classify classic cars: Antiques: Model years 25 and older

– Classics: 20-24 model years – Collectibles : 15-18 model years
– Exotic cars – Less than 15 years old, but still considered to be increasing in value
– Street rods: Manufactured before 1949 and has been mechanically/cosmetically altered
– Customs: Manufactured since 1949 and has been mechanically/cosmetically altered
– Kit cars are made from pre-assembled parts and assembled by an experienced professional, dealer or manufacturer.

The vehicle’s age at the time of registration defines a classic vehicle. Although it varies from state to state, most insurance companies consider vehicles older than 25 years “classics”.

It is important to be familiar with the restrictions and types of classic cars. Also, car owners need to know how policies work and which insurance companies they are provided by.

It is important to consider the driving record and driving record of the applicant for this insurance coverage. Most insurance companies will accept minor traffic offenses and accidents. Insurance companies will not cover anyone who has been involved in major traffic offenses or accidents within the last 3 to 6 years.

When issuing policies, major violations like driving while impaired by alcohol, reckless driving or excessive speeding will be ruled out. To be eligible, applicants must have at least five years of driving experience. The underwriter might also review the driving records of any other family members. They must be more careful when issuing policies for classic cars.