Classic car insurance is a specialized insurance instrument designated for certain cars. This special insurance is non-standard and affords the owner of a classic car optimum coverage for his investment. However, classic car insurance providers have certain qualifying factors before a policy for your vehicle can be underwritten.
In large part, insurance companies define the age of a classic car as one that is at least 15 years old. Some states have a wider definition of 25 years, so a check with your department of motor vehicles would be a first step to determining if your vehicle qualifies as a classic.
Since classic car insurance differs from regular car insurance, the providers of coverage will require a stricter set of rules on a classic car. In addition to the age of the vehicle, insurance companies will require several other conditions to be met. Those conditions will be a limit on the number of miles driven in a year, keeping the car securely stored when not in use, and limitations on the age of the driver and their driving experience and record. In addition the insurance company will negotiate an ‘agreed upon’ value for your classic car.
The majority of states permit the insurance company and owner to arrive at an agreed value of the vehicle. You and the insurance company will set a value on the classic car that will become part of the policy. This agreed value is the monetary amount that the classic car insurance will cover in case of total loss. Unlike a regular vehicle, where ‘the blue book’ or fair market value determines the total loss value of a vehicle.
In regards to the age and experience of a driver, most companies will require a driver be at least 25 years old and have a minimum number of years driving. Of course, an insurance company will also check your driving record prior to issuing a classic car insurance policy.
In addition to the age and experience of the driver/owner, a mileage limit will be assessed on the classic car. Insurance providers vary on this limit, some allow up to 5,000 miles per year while others may permit more. There are also options to select less miles (as low as 1000) which will reduce your premium amount. Although the insurer will not regulate you driving the car to shows, clubs or hobbyist activities, you will be limited from using the car for many other purposes, including daily commutes, and commercial purposes.
Finding suitable classic car insurance is best handled by using a company that specializes in such insurance. Generally you will receive a better rate and the company will have a better understanding of your needs as well.
