Learning about the differences between a standard auto insurance policy, and the type of policy that is necessary when insuring a classic car, will be helpful to you, so that you are aware of the limitations associated with insuring classic vehicles.
You must first ascertain whether your car qualifies under the classification of ‘classic’. The classification of a classic car will differ from insurance company to insurance company, so you will need to do some research to determine what each insurer’s definition of ‘classic’ is.
Most insurers will actually accept classic cars on their standard car insurance policies, but you may face high premiums if you choose to do this. The agreed value clause, which pertains to the minimum amount that you will receive in the event that your vehicle is in an accident or stolen, and is the primary benefit of purchasing specialty insurance, will not apply when classic cars are placed on standard auto policies.
Mainstream insurers will look at current market prices to determine how much to pay you in the event of you making a claim. Deciding on the market value of a classic car is a rather intricate issue, and that is where the difficulty arises. It is common for your vehicle to be valued at less than it is actually worth, and although you may disagree with the insurer’s assessment, you are required to accept the amount that they have come up with.
The classic car market is very price sensitive and market values for the same model of a car can easily vary between 50% to 500%. Even if your car is a limited edition vehicle, is in mint condition or has a provenance, it is nearly impossible for you to get the full value for it if you do not have an agreed value clause.
The objective of the majority of insurance companies, is to pay you the least amount that they can, and standard insurance companies are especially known for this.
In order to get insurance for classic cars the policy will need to include an agreed value clause, your insurer will ask you to adhere to strict insurance guidelines. For example, most classic car insurance policies are aimed at drivers who do not use their cars very much, so there is often an annual mileage cap. Other restrictions might include adding security measures and limiting the number of classic car shows that you can take your vehicle to.
The more rare and desirable your car is, the more you will have to pay, however, due to the restrictions often put in place, classic car insurance policies tend to be relatively cheap. The most important thing to keep in mind is the agreed value clause, and you should be willing to pay higher premiums in order to get an agreed value inserted into your policy that you are happy with.
Everyone loves the vintage car and sports automobiles for the most part. But what about the costs to sustain these cars? How much does the average classic car lover or sports car fan pay on their auto insurance?
Shop and Compare Insurance for Your Classic Auto
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