Collector vehicles are no ordinary cars. The classic, collectible, or antique car in your garage needs more than the ordinary auto-insurance. You may require special insurance coverage to protect your high-value investment. Classic car insurance reflects the uniqueness and value of your ‘baby.’ Special coverage for your unique vehicles includes a standard liability, collision, and comprehensive coverage.
The top three insurance claims are for ‘fender bender,’ theft, and whiplash. If an accident or any other loss occurs, the insurance company will pay for the repairs or replacement of the car as a unique vehicle, not some old junk.
Collector Car Insurance Vs. Standard Auto Insurance
Nearly half of all unique vehicle owners wrongfully place their cars under a standard motor vehicle insurance. Typically, classic car insurance covers differ from ordinary policies in two significant ways.
Lower Premium Rates
The American driver clocks an average of 13500 miles on their vehicle annually. This significantly increases the risks associated with insurance claims, including accidents and theft. Collector vehicles travel less frequently, spending most of their time in storage. Most insurance providers will offer lower premium rates, ranging between 20-40% less than the regular policy.
Guaranteed Value
Insurers calculate ordinary car policies from the ‘actual value’ of the vehicle. The total compensation will be the actual value insured minus depreciation. Unlike ordinary cars, unique vehicles tend to appreciate. Most specialty insurers offer the full cost, ‘guaranteed value,’ for the car as compensation.
Qualification for Classic Car Insurance
Standard auto insurance may not have strict requirements before the purchase of a particular policy. A special cover for your unique vehicles may demand specific qualifications. Some of the common conditions include.
1. Limited Use
Your collectible may not be suitable for everyday commute and running of errands. Some insurers place mileage restrictions, in which owners may not exceed 7500 miles a year. You may need to prove you own a primary, ordinary car that you will use for your multi-day, high-mileage drives. For trips to classic car shows and events, your insurer can create a custom package that protects your unique vehicles during the journey.
2. A Clean Driving Record
Serious offenses that taint your driving record may disqualify you from the classic car insurance program. Some traffic offenses such as driving while intoxicated, excess speeding and reckless driving may contribute to your policy being rejected. Some insurance companies may require the driver to be above 30 years or have five to ten years’ experience.
3. Secure Storage
You may need to provide proof of secure storage spaces for your unique vehicles. Most insurance firms will accept private garages, pole barns, or storage units. The protected areas not only safeguard your car from thieves but also shield it from nature’s destructive elements.
4. Age
Your vehicle may need to be well-maintained for the insurer to enlist it for a classic car insurance package. Each insurance agency has its method to classify collector vehicles as classic, antique or vintage. An insurance expert may help determine the value of your car, depending on its age and condition.
It is not right to place your unique vehicles under standard auto insurance policies. Proper care of your beloved collectible is not enough; you need to purchase the right classic car insurance cover. AOA West Insurance can help you source the best policy for your vehicle and address your other insurance needs.