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Most people have a pretty good understanding of how standard car insurance works for their regular car as the conditions are relatively straight forward and many have had auto insurance since their teenage years. However the policies differ when insuring a classic car. While it is technically possible to insure the classic car with a regular auto policy, the majority of experts will agree in telling you that a specialized classic car insurance from an insurance firm who specializes in such policies is the best choice depending on how you plan to use the car. In What Way Do You Plan to Use Your Classic Car? With a classic car policy it is usually required that you state the intended use of the car and the planned annual mileage. These are standard questions for any car insurance policy, however while the insurance company may be a bit more lenient if you got over your planned allotment by a few hundred miles in your family sedan, these specialized insurers take the figures quite seriously and can refuse coverage if something occurs after the car passes that mileage point. If that occurs while on such a policy , it is important to contact the insuring company and upgrade the policy. How will you use your classic car? Many classic car policies require you to declare the way you will use your car, and also the mileage you plan to put on that car. Of course, you also need to answer these questions for a regular car policy application ,but where a standard insurer who covers your late model Ford understands that you are only estimating, classic car insurance companies will take your answers very seriously. The intended use of the car can also lower your insurance premiums. If your insurance company knows that the car will only be used for shows and not for daily drives around town, the cost to insure it will be considerably lower. What is the Difference Between Actual Cash Value and Agreed Cash Value of My Car? As you likely know when dealing with standard cars, they depreciate in value over time. A normal car is valued based on the book value for that period and this is the actual cash value if a policy ever needs to be collected. Based on this standard method, many collectors cars would appear to have no value at all as they are no longer worth anything in the books, however this is not the case with classic cars. An agreed value policy is one that is set with the insurer whereas both parties agree to the value of the vehicle and that figure is noted in the policy. This ensures that if you do have a claim that you will be given the appropriate coverage in the settlement rather than a book based value. If for some reason the claim exceeds the set value, the company generally gives a far greater settlement than you would get with a standard policy. What Restrictions Are There? As with any specialized insurance, there are several restrictions that exist in comparison to a standard car insurance. While plans are different from company to company the guidelines will be roughly the same , although some tend to be more flexible in their restrictions than others.
Finding the Best Classic Car Insurance As you and your car both have unique needs it is important to look into various policies out there and see who best suits those needs. While one plan may be slightly more affordable, it may limit the use of your car in a way that is not really the way you wanted it. Comparing plans and options helps to make this decision relatively straight forward and some classic car insurance companies now offer free insurance quotes.
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