To many people, classic cars represent the best, most aesthetically pleasing products in the automotive world. Aside from the many benefits this offers to the classic car owner, such as being able to show off a faithfully and painstakingly restored beauty, there are a few issues the owner needs to deal with. Classic cars are very attractive to thieves, because unlike most cars, will tend to increase in value over time, so they always offer the ability to be resold. Also, getting adequate insurance for a classic is not as straightforward as for a modern car. The big name insurance companies typically do not offer “off-the-shelf” insurance products for classic cars. However, it goes without saying that insurance is required, not just from a personal economic perspective, but is also law in many states.
It takes time and research to find the right kind of insurance for your classic car, especially if you’re set on finding the cheapest insurance available. There are insurance companies that do specialize in antique and classic cars like Haggerty, Leland West and Norwich Union, as well as larger insurance companies that offer specialized insurance for these types of vehicles. You just have to do a bit of digging. Weigh your options because the costs associated antique and classic car insurance vary widely. It’s also important to determine the value different companies will place on your vehicle in order to be certain that you’ll be insured for the full amount it’s worth. Traditional insurance values the car at what it costs to replace it less any depreciation. With antique and classic car insurance, however, the value of your vehicle is typically reached by agreement between you and the insurance provider. This way, if the car is totaled in an accident or stolen and never recovered, you don’t lose your entire investment.
The type of insurance policy described above is called an agreed value policy, in which the agreed value is the maximum amount the insurance company will pay in the event of a total loss. They will then give you a premium quote based on the agreed value. The good news is that cost of classic car insurance is typically lower than convention auto insurance because of the low rate of claims made. This is likely due to the extraordinarily high level of care given to these cars both on the road and in the garage. However, not everyone will be eligible for this type of policy. Typically the following restrictions apply:
A lot of antique and typical automobile insurance policies want that you get together a specific mature limit. This is to insure that the driver(s) on the policy have sufficient driving practice. This makes it hard for youthful and new drivers to obtain car insurance, still if they are driving a very old.
Age of the Vehicle Requirement: many of these policies have imposed a minimum age limit for your vehicle to be considered an antique. Typically, the limit is 15 years old. So if your car is less than 15 years old it may be difficult to get antique car insurance.
In arrange to qualify for typical automobile insurance; there are certain limits on how your classic automobile can be used. For example, you must have a garage. Additionally, you can’t use your typical automobile for some business purposes. Finally, there is a limit on the number of miles that you can put on your vehicle every month. If you go over the mileage limit you can but your vehicle in risk of losing its defensive insurance. Because of the imposed mileage limit, you have to also be clever to show that you have one more vehicle which is used for usual driving.
If your car can be considered a collectible, antique and classic car insurance is absolutely your best option. This form of insurance is designed to protect vehicles that appreciate in value over time rather than depreciate. If you cannot find classic auto insurance, then most insurance companies will allow you to purchase traditional insurance but you can expect to pay a higher monthly premium and receive less in a settlement if your vehicle is totaled. So if you’re driving an antique or classic car and you can get specialized insurance locally take advantage of it. It’s the least expensive way to protect your prized possession without losing a major investment.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za, a leading South African car and vechile portal, which provides cover for all car and vechile types.
