Owning a collectible car may be a matter of pride for some; however, it also is an investment. As with any investment, an adequate protection in the form of collector car insurance is necessary. As collectible cars are quite expensive to replace or repair, a collector car insurance policy will protect your investment against possible damage, theft, or accidents.
Collector car insurance is a specific and specialized form of insurance that is quite different from your regular vehicle insurance policy. Insurance companies have several requirements before they will underwrite a policy to cover your collectible. The three main stipulations are mileage limits, vehicle age, and driver qualifications. There also is an insistence by the insurance provider that the car is garage kept and well secured when not in use.
Mileage limitations may vary from company to company, generally the limit is 5000 miles per year. However, there are some cases where more miles are permitted. The mileage driven is limited to car, hobby, and show activities for the most part; collector car insurance policies do not permit driving the insured vehicle for commuting or commercial activities.
Restrictions on the vehicle’s age are a primary factor in collector car insurance policies. The majority of companies require the car to be at least 15 years old. Some insurance providers require as much as 25 years and in a few cases more than 35 years old.
In order to qualify for collector car insurance, a driver must meet certain qualifications as well. The overwhelming numbers of insurers require a minimum age of 25 with at least 9 years of driving experience. Some providers also require a clean driving record.
After the requirements of the collector car insurance is met, your agent and you will determine an agreed upon value of the car. Unlike a regular car which has its value set by automobile industry standard practices such as a blue book value or fair market value, you are permitted to determine the value of the car at the time of the writing of the policy. The amount you and the insurer agree upon will be the replacement value of the car should it be a total loss.
Selecting a well qualified insurance company for your collector car insurance is a necessity to protect your investment. Several companies specialize in the writing of collector car insurance policies, and it is best to choose one of these providers as opposed to selecting any insurance company. You will find it is the best policy for your investment.
