If you own a classic car, you have the option of insuring the vehicle using a traditional auto insurance policy or a classic car insurance policy. Most people opt for the latter because it meets the unique needs of these vehicles. According to the Insurance Information Institute, every year, the national expenditure for car insurance increases by approximately 1%. With this statistic in mind, here are some key factors to keep in mind from an insurance provider.
Qualification
Not everyone meets the requirements to insure their vehicle under a classic car insurance policy. It’s important to note that different companies have different criteria for these types of automobiles. As a general rule of thumb, most require the vehicle to be anywhere from 15 to 25 years old and that only limited mileage has been used. Some may also require that the car not be your main source of transportation. There may even be requirements about where and how the vehicle can be stored.
True Value
If you meet the described requirements above and want to go further, the next thing you have to consider is the true value of your car. If you were to obtain a traditional auto insurance policy, you would only be entitled to the actual cash value of the car. This is generally very low for older cars. However, classic auto insurance allows you to get the true value of your car based on the modifications, restoration work, and upgrades that you have completed. You and the insurer will agree on the true value of your car when you obtain a policy.
Your Driving Record
Lastly, you need to think about your driving record. Classic car insurance is considered a premium insurance product, and as such, most insurers will only insure these types of vehicles for drivers with good driving records. If you have multiple accidents, speeding tickets, or a DUI, you may have trouble getting your classic vehicle insured.
You are legally required to insure a classic car, even if you rarely drive it. As such, many classic car owners prefer classic car insurance because the rates are lower due to the decreased usage of the automobile. If you’re in the market for a new policy, our team at AOAWest can help. Call us today to obtain a quote.