Specialized Classic Car Insurance
Classic cars require a special type of insurance usually referred to as classic car insurance by the industry. This specific type of coverage will give you special protections not available in standard car insurance. Although, Insurance companies have certain requirements to classify your vehicle under their classic car insurance program.
In most cases, a classic car, as defined by the classic car insurance industry is one that is more than 15 years old. However, a few states define a classic car as 25 years or more, checking with your local DMV may help to clarify the age in your state.
The insurance companies have stricter requirements on classic car insurance than they do on regular vehicle coverage. Aside form the age of a car, the insurer also requires certain conditions an owner must adhere to. 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. As part of your classic car insurance, the company will also stipulate an ‘agree-upon’ value .
State laws, although they vary, allows a negotiation between an insurance provider and insured to agree on the value of the classic car when the policy is written. 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.
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. Naturally, the insurer will also request a DMV report before writing your classic car insurance policy.
Mileage is another concern of the insurer, this number may vary from one company to the next, but generally it is around 5000 miles annually. Some providers will allow you to choose a lower annual mileage, which may lower your monthly premiums. 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.
Using a reputable firm that specifically deals in classic car insurance is the best way to ensure you are getting the protection and value for your classic car. Usually these specialized companies can serve you better than a regular insurance provider.
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