For many classic car enthusiasts, the restoration process of their automobile is viewed as the final step in moving from under the covers in the garage and into the flow of traffic. However, an important and often neglected finishing piece in putting a classic car on the road is choosing the right insurance.
Now, you may ask, “Well, can’t I just add my classic car to my standard insurance plan?” While your classic car can be insured under the same policy as your cars driven regularly, this will not provide the most beneficial coverage. Why? Traditional insurance plans base their premiums on depreciation, which correlates to the age of the automobile. In other words: the older the automobile, the higher the premium. Insurance companies that deal strictly with classic cars, on the other hand, set a premium on the base value of the automobile combined with the cost of any additional parts or restoration – no depreciation of the automobile is involved. As a result, the premiums from a company dealing strictly with classic cars will be lower than the premiums of a standard insurance plan.
“So now that I know that classic car insurance is better suited for my car, how do I choose the right plan?” While each individual’s needs are different, there are several factors to examine when searching for an insurance plan:
– Coverage: How is THEIR coverage? This is quite possibly the most important factor when looking into the insurance plan. Will your car be completely covered in case of an accident? Are you able to use the mechanic of our choice if any damage occurs? Is there any protection for the car during auto shows or any foreign shipping? These are all questions that must be asked when looking for the right policy. If you’re not completely satisfied with their answers, chances are good that there’s a reason. In case of an accident, you want to be sure you’re dealing with trained experts in the field of insurance, and nothing less.
– Mileage: How often do you plan on driving? Insurance companies often set a limit on the mileage you use during your covered period (i.e. 1,000 miles per year). However, some companies will provide multiple plans (i.e. 1,000/3,000/6,000 miles) to choose from, which helps if you plan on driving your classic car more than once a month.
– Age: How old are you? A minimum age requirement can be set by an insurance company, eliminating the coverage of inexperienced and reckless drivers with classic cars. The minimum age for most companies is 25 years old, so in most cases, car enthusiasts will not be affected
– History: How is your driving record? Most insurance companies expect at least 5 years with a clean driving record. While minor accidents and traffic violations may be acceptable during that time period, instances involving alcohol and excessive speeding will often need at least 6-10 years.
Several areas must be examined when searching for the right classic car insurance. Before purchasing an insurance plan, it is recommended that you obtain price quotes from each of the companies that meet the needs of you and your automobile. Furthermore, be sure you are completely comfortable with the insurance company, as anything less will prove disastrous in the event of an accident. If these steps are followed accordingly, you’ll feel both safe and happy when it’s time to take your car for its first spin!