How To Lose Your Shirt On A Classic Car
Choosing a classic car insurance company for your classic vehicle can be a daunting task. The car insurance industry gives you conflicting information about policies and coverage. Classic insurance coverage can be had for a lower rate over a daily driver insurance policy, but you need to abide by its limitations. It pays to do your research to make sure you’re getting the best deal available.
There are a lot of critical points you need to consider before picking an insurance company:
1. How many miles do I plan on driving each year?
2. What’s my acceptable risk in the case of a claim?
3. Do I want to drive my classic car every day?
4. How difficult is it to find parts in the case of a repair?
5. Do I need a local agent?
Mileage is an important factor for classic car insurance companies. They offer coverage for your specialty car at a reduced rate because they require that your usage is limited. The average specialty insurance company allows for a cap of 2,500 miles per year driving for their insurance plans. The limited driving means a limited amount of exposure for the insurance company. Some companies, such as Sneed, offer unlimited driving privileges but impose other limitations, such as no driving to work or daily driving uses.
Specialty Cars Are Risky To Cover
Standard insurance coverage typically pays for repairs based on the industry standard prices established for your vehicle. This rate assumes the parts are readily available and can be purchased by standard processes. They are unable to guarantee that your 1948 Mercury will be repairable with NOS parts, as these are only available in limited quantities. To ensure your classic car is covered to the full extent of any damage is to purchase stated value insurance. Stated value insurance allows you to set a price to the value of your car, and in the case of a claim you can be sure that your vehicle is covered for damages up to that amount. This is perfect for rare vehicles or cars that are of special value.
Please Don’t Drive Your Rare Mustang To Work
Insurance companies that cover specialty vehicles typically ensure that you have another vehicle to drive on a daily basis. They do this because they don’t want you driving your collector car to work every day. This is because they limit their risk by limiting your mileage. Many companies give you a clear limit to how many miles you can drive. Others simply have rough guidelines.
Collector Cars Are Expensive To Insure
Some vehicles are collectible because of their rarity. Standard insurance policies will not cover sourcing original New Old Stock (NOS) parts for a specialty car. They’ll only use generic replacement parts. This may effect the value of the vehicle when it comes to resale value.
Make sure you understand the importance of finding the right insurance company for your vehicle. Sites like Collector Car Insurance Reviews and Collector Car Insurance Tips are great places to start your research. Find out what’s the best choice for your needs before you take to the streets this car show season.
Filed under Insurance