Many people for many reasons enjoy classic cars. Maybe it is the nostalgia or the fact that they are rare – whatever the case, if you own a classic car or vehicle that is worth more than it originally sold for when it was brand new, then you will want to make sure it stays protected as well as properly insured.
To start, don’t leave your car out in the sun. Cars left to the elements of weather fade and crack, paint peels and it isn’t pretty. There is no quicker way to devalue your vehicle than to leave it exposed. Another danger of leaving your car out in the weather is hail damage. In some states, hail damage costs over 1 billion dollars a year. While body shops can help you remove the dents and dings from hail damage with a technology called paintless dent repair or PDR, it is always best to prevent the damage from occurring in the first place, if possible. But of course one can’t keep their classic car protected on a constant basis, driving it is part of the joy in owning it. For this reason, you want to make sure your classic car is also properly insured.
Insuring your classic car is going to be a different than insuring your regular driving around car. When you buy a classic car insurance policy, you are essentially purchasing protection for the value of the vehicle as a collectible.
With this type of policy comes certain stipulations or requirements.
These stipulations include:
- A decent driving record.
- At least 10 years driving experience
- No teen drivers on the policy or drivers with poor driving records
- Secure and out of the weather garage
- Proof that you have another car for daily transportation
- Collector vehicle insurance is sometimes limited by the age of your car, and if your car is too young it may not qualify for a particular policy.
- Limited mileage. You probably don’t want to drive your creampuff car all the time, and your insurance company doesn’t want you to either. Mileage limits have increased recently, though, so if you can live with 250 miles a month you’re probably okay.
Once you are approved you want to make sure the policy’s worth is what you intended. Review these terms:
1) Actual cash value:
This is what you usually get with ordinary insurance, and is based on replacement cost minus depreciation.
2) Stated value:
The insurance company pays up to the stated value of the car, but may not guarantee the full stated value. And deductibles of up to ,000 usually apply.
3) Agreed value:
In most jurisdictions, those who provide collector car insurance or classic car insurance are allowed to insure for a value that you and your insurer agree upon. And for most autos, there is no deductible. If your 0,000 vintage Rolls get trashed, you get a check for 100 grand, plain and simple – which is exactly why collectors use special classic car insurance coverage.
Last, after you have purchased your insurance, do a periodic review of your coverage limits, because classic car prices are rising. What you insured your classic car for ten years ago may be a fraction of what it’s worth is today. And if you are restoring a vehicle, ask your agent to give you appropriate insurance.
Once your car is properly protected physically and through insurance, you are ready to show it off and of course enjoy the ownership of something unique.