If you are considering buying a classic car or you have already taken the plunge, you might be wondering about the best way to protect your investment. With all the effort that goes into caring for a vintage, collectible or antique car, the last thing you want to worry about is how to replace something so unique if there is an accident. Classic car insurance is the best choice because it takes into account the special considerations that come with owning these types of cars.
How Do I Know If My Car Is Considered A Classic Car?
Your vehicle is considered a classic car if it is expected to hold or appreciate in value and is used mainly for pleasure rather than transportation. The requirements vary, but your vehicle may be eligible if it is at least 25 years old (or if it is in limited production and has a rare design but is newer than 25 years old). Replica or kit cars can also be considered classic cars for insurance purposes.
Generally speaking, it must be used mainly for club activities, exhibitions and occasional leisure drives, and it will need to be stored in a structure that is fully enclosed and locked.
How Is Classic Car Insurance Different From Auto Insurance?
A traditional car insurance policy generally only covers you for the actual cash value of the car, which does not usually work in your favor if you have a classic car.
In addition, regular auto insurance will typically replace or rebuild your car with aftermarket parts, whereas classic car insurance will allow for the use of original parts (if your car had them) to preserve your vehicle’s integrity.
No Fixed Mileage Limits
Many classic car insurance policies will allow flexible usage without fixed mileage limits. With full courage on a regular car insurance policy, on the other hand, you may have to stick to certain mileage and usage restrictions.
Agreed Value Coverage
With a collector car insurance policy, your vehicle will normally be covered at what is known as the agreed value, which will be decided before the policy is issued. This means there is no depreciation when you make a claim.
In the event of a covered total loss, you can expect to receive the full agreed value minus your deductible.
Classic car insurance is as much as 43 percent lower than standard car insurance, according to an analysis of data from several daily driver car insurance carriers. Moreover, it better suits the needs of classic car owners. With a daily driver insurance policy, in contrast, you could be charged as if you were driving the car every day.
Reach Out To The Specialty Insurance Brokerage
If you are ready to find out more about classic car insurance and how it can protect your vehicle, reach out to the specialty insurance brokerage Merchant Family Agency for professional advice so you can enjoy car club cruises, car shows and other outings in your treasured vehicle with peace of mind. Please give us a call at 407.707.6418 or request a quote online today.