What is Classic Car Insurance?

Car insurance is a type of insurance that covers vehicles against damage or theft. For classic car insurance, basically it is the same type of insurance as you would get for your every day vehicle except it is specially designed for specific types of cars. Most people who own classic or collector edition cars have comprehensive coverage on their vehicle. This is to cover any damage that may occur when using the vehicles in shows or exhibitions. Typically, classic cars are not used as every day vehicles so classic car insurance takes that into consideration. However, they are valuable as antiques so that also may factor into the premiums.

Classic car insurance is intended for vehicles that are driven only occasionally for pleasure and not used for every day purposes. Many classic car insurance companies put a cap on the number of miles the car can be driven each year. Typically this is somewhere around seven thousand miles. However, each company will set its own standards so it is important to shop around. If you do happen to drive your classic car for every day purposes or use the car to travel from show to show and accrue a lot of miles on it, there are options. However, these may have significantly increased premiums.

The classic car insurance also covers events such as car shows and exhibitions. The definition of a classic car can be established by the particular classic car insurance dealer but typically it means the types of vehicles that were made prior to 1970. This includes cars such as horseless carriages, antique muscle cars, classic cars and even high end replicas. Check with your local classic car insurance dealer to determine what is considered a classic car for their particular insurance.

In order to have classic car insurance, you must have a value of the car. This is typically done by having the car appraised and valued. Keep in mind, though, that classic car insurance will cover the agreed stated value of the car. Unless this value is changed, the coverage is for only that amount. The problem with this is that classic car values will fluctuate significantly depending on the current market. A classic car is not only fun but it is an investment. As with all investments, fluctuating market conditions can affect its worth. Consider stocks, antiques or real estate investments. Just as they may appreciate or depreciate in value, so will classic cars.

So, when choosing classic car insurance, make sure you have adequate coverage to take care of the car in case of damage or theft. If the existing market makes your car more valuable, you may want to contact the classic car insurance carrier to raise your agreed stated value of the vehicle. Keeping your car value current with your classic car insurance carrier is essential especially if you plan on showing your car at shows and travel with it frequently.

It is also important when choosing classic car insurance that you know what type of coverage you need. This may depend greatly on your intended use of the vehicle will be. Researching classic car insurance companies to find one that has representatives familiar with this industry can be extremely helpful. If you are unsure about the types and amounts of coverage that will be best suited for your vehicle, the representative will be able to assist you and give you recommendations based on their experience in the field. Classic cars are an investment and need to be protected to the fullest extent possible.

There are many people who take pride in their classic cars. In addition to enjoying the look of them and the attention you get when driving them, many classic car owners take their vehicles to shows and exhibitions. Unlike modern cars, classic cars do not immediately depreciate in value. In fact they often appreciate in value because of their antique status. The amount of this depends on the market and type of car. Regardless, it is important to get classic car insurance to cover any liability that may occur with the use. Having classic car insurance will give you the security and peace of mind to know your investment is safe and should something tragic occur, you will not be out thousands of dollars.