Learn About Insuring A Classic Car

Insuring a classic car is not as easy as insuring a more standard vehicle, so it is important to know a little about how the policies differ and what restrictions to watch out for. The first thing to consider is whether your vehicle is actually classified as being a ‘classic’ one. The classification of a classic car will differ from insurance company to insurance company, so you will need to do some research to determine what each insurer’s definition of ‘classic’ is. It is common for classic vehicles to be permitted on a standard auto insurance policy, although it is likely that insurers will charge higher premiums for this privilege. Also, you will not benefit from what is the biggest advantage of buying specialist insurance, which is the agreed value clause (or the minimum amount that will be paid to you should your car be stolen or involved in an accident or stolen).

Most often, insurers will consider the current market prices of your vehicle in order to calculate how much to pay you for any claim that you file. For classic cars, this often presents a problem as working out their market value is not easy. It is not uncommon for insurers to place a lower value on your vehicle that you would like, and you will have to accept the amount paid even if you do not believe it was high enough. When it comes to classic cars, the value of a single car model can differ by 50% or as much as 500%, as the market for these types of vehicles is highly price sensitive. If your car is in mint condition, is limited edition or has providence, then without an agreed value clause then there is pretty much no way that you will receive its full value. The objective of the majority of insurance companies, is to pay you the least amount that they can, and standard insurance companies are especially known for this.

In order to take out a classic car insurance policy that includes an agreed value clause, your insurer will ask you to adhere to strict insurance guidelines. A yearly mileage maximum is one such rule, as it is expected that a classic car will be driven less, and the classic car insurance policy will reflect this guideline. Other guidelines that you may have to adhere to are adding security measures to your vehicle, and putting a limit to the number of classic car shows that you can participate in. These restrictions that are associated with classic car insurance policies, will generally allow these types of policies to be reasonably priced, but you should expect to pay a higher rate if your vehicle is a model that is considered very rare and in demand. When shopping for a classic car insurance policy, having the agreed value clause included in your policy, should be a priority for you, and it is recommended that you live with a more expensive premium in order to have this clause included.

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