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Congratulations! As the owner of a classic car you’ve now stepped into the wide, wonderful world of classic car ownership and a huge community of car lovers who share the same appreciation for a car that has both power and history as you do. Now you get to expand your horizons even farther into the world of classic cars by beginning your quest for classic car insurance.
When you insure your classic car you’re going to have two choices:
1) Purchasing a policy through a standard car insurance carrier. Yes, you can save yourself some time and effort and simply add your classic car onto your regular car insurance policy-you know, the same one you use to protect the commuter car that takes you to and from the job you used to help you buy and restore your classic car in the first place! Over 50% of classic cars today are covered by standard carriers.
There are some pros and cons to purchasing a policy for your classic car through a standard car insurance provider. It certainly makes it easier to keep track of your payments and policy terms if you have all of your vehicles under one roof, so to speak. It also allows you to enjoy a multi-car discount on all of your vehicles and unrestricted use of your classic car.
The down side of standard car insurance coverage comes in the form of the sixteen year old driver with a squeaky new license who needs more coverage than you do. Car insurance companies design their policies with daily drivers in mind, not collectors. As a result, you may end up paying more for coverage you neither want, nor need.
2) Purchasing collector’s car insurance. If your classic car is more than fifteen to twenty years old (depending on the make, model and what state you live in) and used solely as a pleasure vehicle you may prefer to insure it under a collector’s insurance policy. Collector’s insurance is available nationwide and is generally less expensive than a standard policy, both because most of the vehicles these companies insure are at a low risk for filing a claim and because drivers have the option to customize their coverage to meet their specific needs.
Some drivers find that collector’s insurance requires them to jump through what they perceive to be unnecessary hoops. For example, to purchase a car insurance policy through a specialized provider it is usually required that you have a valid driver’s license and a good driving record extending back at least ten years. They will also require you to have a passenger car for each licensed driver in your family to prevent your classic car from becoming a primary mode of transportation, have a garage that your car calls home a majority of the time, and restrict your use of your classic car to the occasional pleasure drive and/or classic car show. All of these steps are designed to minimize your need to file a claim before approving your insurance.
Although this information is usually just submitted on a piece of paper prior to being approved, it’s not unheard of for a car insurance carrier to audit a high value or extremely rare classic car prior to approving coverage.
The choice to insure your car with a standard carrier or a specialized provider is entirely up to you, and should be made with your particular needs in mind. What’s important is that you ensure that your new baby is insured with a car insurance policy that takes care of her as well as you do yourself.
Posts Tagged ‘Classic Car Insurance’
What You Need to Know About Car Insurance and Your Classic Car
Posted in Mini Moke Blogs 
Tags: Car Lovers, Classic Car Insurance, Classic Insurance, Insurance Car, Insurance ProviderInsurance for Classic Cars
rm “classic car” can mean a lot of different things. Cars made up to 1904 are considered “veteran cars,” while the Edwardian period stretches from 1905 to 1918, and the Vintage age lasts from 1919-1930. For the most part, cars are usually called “classics” if they were manufactured at least 25 years ago, but even some relatively recent cars which are thought of as especially rare and collectible are thought of as classics.
For the purposes of insurance and traffic laws, many US states have their own specific rules as to what can be considered a “classic car.” In the United States, certain cars from the “muscle car” era are considered classics with a special prestige, while other popular worldwide classics include the original Mini and the original Beetle.
Classic cars often don’t have modern safety features, and are thus prone to damage and possibly expensive to insure. They do not have things like seatbelts, crumple zones, airbags, or any type of rollover protection, as these things were mostly added in the time since the generally accepted “classic” period. Despite the fact that it’s commonly thought to be expensive, custom car insurance is a must, even for owners who do not intend to drive them on regular roads, because, among other reasons, maintenance and repairs can be surprisingly expensive, meaning that any serious owner should think about having insurance and get several classic auto insurance quotes
When looking at classic car insurance, the owner must think about a number of factors. Issue number one is the valuation of the car. Policies can be sold based on the actual cash value of the car, in which case a book value with depreciation will be paid out by the provider in the event of a claim; then there is the “stated value” policy, which can still depreciate, but is based on the owner’s valuation for the car; and agreed value, which might not necessarily depreciate, and depends on a consensus between owner and provider.
Other factors to consider include: whether or not the policy liability covers public events; coverage including events and shows; coverage for damages incurred during restoration; and moveable premiums taking into account mileage, which naturally varies significantly for classic cars from year to year.
Some owners assume that specialist-provided insurance can’t help but be especially expensive, but this is not necessarily a correct assumption. Insurers that deal specifically with classic cars are much more likely to understand the aforementioned issues, and thus, ultimately, classic car owners might actually seriously reduce their insurance costs, and end up with a much better policy, from a specialist in classic car insurance.
Posted in Mini Moke Blogs Tags: Classic Car Insurance, Different Things, Rollover Protection, Safety Features, Traffic LawsHow To Compare Classic Car Insurance Online
Comparing car insurance online can be a minefield for any people, with so many options available online at the click of a mouse, it is often confusing, a problem that is exacerbated if you own a classic car and require specialist car insurance.
So how do you choose firstly a website, then a company, then the policy, that is going to be right for your prized possession, your cherished classic car?
You could like the majority of people start off by visiting a large car insurance comparison site, such as the ones you will see advertising during virtually every commercial break on television. don’t expect to find any bargains at these types of sites. They are designed around standard polices for standard vehicles, and although many of these sites willl now quote for classic cars, the premiums are often heavily loaded and more often far from competitive. Having spent time filling out the application form online it can be disappointing to find that most companies on the comparison panel are refusing to quote for your particular classic, or have loaded the premium as the do not want your business. For the majority of the large car insurance companies, classic cars mainly equate to expensive claims, and not profitable target business.
When comparing what can at first appear to be, cheap classic car insurance through one of thee large supermarket distribution outlets, be very careful to read all the wordings in the small print, paying particular close attention to the information regarding claims.
If you own a classic car you need to ascertain that in the event of an accident your classic car will be taken to a specialist or maker approved repairer and that only genuine replacement parts will be used on your car to repair it. Unfortunately you will find that most mainstream car insurers have a network of approved repairers nationwide, and will often insist that cars covered under their policy contracts must be repaired through these outlets. In situations such as this, what appeared to be a bargain cheap car insurance deal at source, could prove to be a very expensive mistake.
The solution to the problem is to approach a specialist car insurer or broker, in particular one who has experience in underwriting classic motors, and preferably has a large book of business of classic car insurance. Unlike in many other professions for example healthcare, a specialist in car insurance is often cheaper than the High Street names and offer better value quality cover that can be tailored to the requirements of your specific classic car make and model. By specialising in a particular market niche these car insurers have developed group schemes for virtually every type of classic. By joining one of these schemes you are joining a risk pool of like minded individuals and similar cars. The specialist car insurer is able to determine more accurate rates for a particular classic and you will also benefit from the power of group buying which delivers economies of scale in the form of shared risks and cheaper premiums.
Posted in Mini Moke Blogs Tags: Bargains, Car Insurance Companies, Classic Car Insurance, Distribution Outlets, PolicesClassic Car Insurance For Motorists
The following article will give classic, vintage car buffs the low down on the actual differences that exist between classic car insurance and standard auto insurance. If you love and own classic cars and are busy looking for the best insurance deals available, this article not only gives you the right information you need, but also busts a few popular myths regarding classic car insurance as compared to standard auto insurance.
Many owners of vintage vehicles assume that the only way to insure their collector car is to put it into the family auto policy. That’s not true. The only policy that properly insures the investment car buffs have made on their prized classic car is the classic car insurance policy.
Classic car insurance is less expensive than standard auto insurance, but these companies require you to fulfil a few necessary criteria before you can qualify for their programs and get those great deals and low rates. Here are some of the primary restrictions vintage car owners have to face:
Before you get that good rate on your insurance coverage, the insurance companies will want to know the age of the driver (as many companies require you to meet a certain driver’s-age restrictions), the mileage of your car ( there may be mileage restrictions to meet also), vehicle age qualifications and housing and garage provisions.
In many cases, insurance policies for classic car insurance and those for standard auto insurance can differ a lot. Most standard auto insurance policies will insure the vehicle for its current price, subtracting depreciation. What this means is that, with an increase in the age and usage of the car, its value will decrease. But this is not the case with a vintage vehicle. For this, its value will increase over time provided the collector maintains his vehicle well. This is due to the fact that collectors truly treasure their precious collectible autos. They are not used for similar purposes as daily-use cars and are not driven very often.
To provide the necessary coverage in such a situation, classic car insurance providers usually offer an “Agreed Value Coverage”. This essentially means that you, the insured, and the classic car insurance agent, will agree upon the value of your vehicle up front. Such a vehicle valuation will give the full market value of the classic car as stated on the policy and factor in appreciation to the value in a time of loss.
There may also be some carriers that will offer low or no deductibles for comprehensive and collision coverage. Many times they will also provide coverage for spare parts or accessories that are not on or in your classic car. You won’t get that kind of coverage on your family auto policy.
As you see, getting a classic car insurance policy can be much more beneficial to your prized classic car than clubbing it under your general family auto policy. A vintage collectible needs to be treated specially; so why settle for the ordinary when it comes to choosing insurance?
Posted in Mini Moke Blogs Tags: Auto Insurance Policies, Auto Policy, Classic Car Insurance, Family Auto, Insurance Coverage