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What to know when insuring your classic car. by : Barbara
Waltz Article. Most
drivers understand the basics of their regular car insurance policy, and so
they are fairly satisfied with their coverage. However, classic car owners
need to understand that their rare and unique car will require a different
sort of coverage than the family car does.
In fact, many people with rare or antique vehicles became very
frustrated when they needed to make an insurance claim because they did
understand the
classic
car insurance policy they purchased.
How
do you use your classic car?
How
will you park or store your classic car?
What
if you use your classic or custom car for daily use?
How
will your car be “valued” by an insurer? How Do You Use Your Classic Car?Some
classic and custom car insurance only covers a vehicle while it is
traveling between shows, or actually parked at a show. If you want to use
your own collectible car for a Sunday drive, you need to make sure that
pleasure driving is included in the policy. Before you take your investment
out for a Sunday drive to the beach, make sure that use is covered. It will be very tough, if not impossible, to find a policy that covers the vehicle for a daily work commute or routine errand. Classic car insurance is not intended for daily use. In addition, most classic car insurance is written for a specified, yearly mileage limit. These limits may be 1,000 or 5,000 miles a year. An average yearly use for a regular car would be closer to 12,000 miles. Now I have never heard of any car insurer denying a regular car insurance claim because a driver exceeded their mileage estimate by a few miles. I do not believe they even check that very often. But classic car insurance companies take that mileage limit very seriously.
How Do You Park Your Classic Car?You may
also have restrictions on the way you store or park your car while it is
not attended. You should be covered if you leave your car to eat a meal on
the way home from a car show. But you may not be covered if you leave it at
the mall while you are shopping. What if You Must Use My Class Car For Daily Use?If you just
cannot use another car for your daily commute and errands, you will have to
find a regular car insurance company that will agree to cover your classic
car for the “agreed amount”. You must document your car's value
very carefully. The problem with antique cars, for instance, is that they
are probably so old they have rolled off of traditional book value sheets.
However, you may have invested thousands of dollars restoring it, and it
may be worth tens of thousands of dollars to informed collectors. Stated Value vs. Agreed Value Custom Car Insurance PoliciesA stated
value policy means that you declare the value of the car, and it is
written into the policy. But an adjuster can still argue the point when you
make a claim. An agreed value policy means that the value is bound
into the policy, and the insurance company has accepted it before the
policy is issued. You will
pay more for an agreed value policy, and probably find that it has more
restrictions on use, but it will protect your investment against a total
loss. But be careful about
actual value insurance, because that will usually cause your car's value to
be depreciated every year despite the fact that classic cars are likely to
appreciate with time. As with any insurance policy, it is best to compare
insurance quotes when looking
for a new policy Bio- (if
needed) Barbara Waltz is an
insurance agent with over a decade of experience in the industry. As an
insurance agent it is her job to assist in finding suitable insurance plans
that fit the needs, life situation and budget of her clients. Barbara
started her blog, 24/7
Quote Us, a few years
back for that reason -- to offer her knowledge and know how while producing
reliable online information regarding Home, Life, Health, Vehicle and
Finance Insurance to be used as a resource guide.
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