Classic Car Insurance

Classic car insurance is a specialized insurance instrument designated for certain cars. Classic car insurance is not a standard type of coverage and has special protections for your investment. However, classic car insurance providers have certain qualifying factors before a policy for your vehicle can be underwritten.

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.

There are different sets of rules for classic car insurance than there are for standard car coverage. Besides the age of an automobile, the insurance provider will have other prerequisites the owner must meet. 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. As part of your classic car insurance, the company will also stipulate an ‘agree-upon’ value .

Most states allow the insurer and owner of a classic car to decide on an agreeable value of the car. The insurance company and you will set a value on the classic car that will become part of the policy. This agreed value is the monetary amount that the classic car insurance will cover in case of total loss. Unlike a regular vehicle, where ‘the blue book’ or fair market value determines the total loss value of a vehicle.

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.

An annual mileage limit is usually required by the insurer, in most cases this limit is 5000 miles. There are also options to select less miles (as low as 1000) which will reduce your premium amount. Driving your classic car to shows, club events and classic car activities are generally not restricted, however daily commuting and commercial use is prohibited in most cases.

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.