Classic Car Insurance
Owning a classic car may require you to purchase a special type of classic car insurance. Classic car insurance is not a standard type of coverage and has special protections for your investment. Nevertheless, before a policy can be written, your automobile muct qualify under the providers classic car insurance requirements.
For the most part, a classic car is defined by the classic car insurance companies as one that is more than 15 years old. In some States, a more broad definition of a classic car is used, be sure to check your state definition to ensure your car is indeed a classic.
The insurance companies have stricter requirements on classic car insurance than they do on regular vehicle coverage. In addition to the age of the vehicle, insurance companies will require several other conditions to be met. The age of the driver, his driving record (with a minimum of years driving), storage of the car, and limits on annual mileage are all additional stipulations. Furthermore, the insurer will want to set an ‘agreed upon’ value for the vehicle .
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. The amount is the total loss value of the car in specific monetary terms. This is much different from a standard policy in which total loss is determined by fair market value or the blue book value.
As far as the drivers age, most insurers will mandate a driver be over 25 and to have a license for at least so many years. A mandatory requirement as well is a DMV report before the classic car insurance is issued.
An annual mileage limit is usually required by the insurer, in most cases this limit is 5000 miles. If you want to reduce your monthly premium, you may be able to select a lower mileage limit with some companies. In many cases the insurer will not restrict your use of the car to drive to car clubs, classic car events or car shows, they will restrict your use for commercial purposes or daily commuting.
To get the best out of your classic car insurance, find a company that specifically writes this type of policy. You will find that specialists in this field are better situated to handle your specific needs.
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