Classic Cars Need Different Insurance Coverage Than Camrys By Richard Brown Making a choice of a insurance company for your specialty can be a hard thing to do. The insurance industry gives you sometimes conflicting information about policies and coverage. Specialty insurance coverage can be had for a lower rate over a normal insurance policy, but you need to understand its limitations. It's important to do your homework to make sure you're getting the best deal possible.
Some of the important things you need to know about choosing insurance:
Do I want to drive my classic every day?
How many miles do I plan on driving each year?
What's my acceptable risk in the case of a claim?
How difficult is it to find parts in the case of a repair?
Mileage is an important point for classic vehicle insurance companies. They offer coverage for your classic at a lower rate because they assume that your usage is limited. The average classic 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 Grundy, offer unrestricted driving privileges but impose other limitations, such as no driving to work or daily driving uses.
Classic Cars Are Expensive to Insure
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 1969 Ford Mustang will be repairable with NOS parts, as these are only available in limited quantities. To ensure your collector is covered completely for 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 ideal for rare vehicles or cars that are of special value.
Classic Cars Shouldn't Be Driven to Work
Insurance
companies that cover collector 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 to work every day. This is because they limit their risk by limiting your mileage. Some companies give you a clear limit to how many miles you can drive. Others simply have rough guidelines.
Classic Cars are Expensive To Insure
Rare cars can be expensive to repair because of the cost of the replacement parts. 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.
Be certain you understand the importance of picking the right insurance company for your vehicle. Sites like Classic Insurance Reviews and Classic 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 summer.
Below you'll find some good articles to read about classic cars:
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