For those classic car enthusiasts, we know you treasure your vehicles for their timeless attractions, craftsmanship, and the history they represent. However, safeguarding these precious assets is a unique challenge which is where classic car insurance comes in. Unlike standard auto insurance policies, classic car insurance recognizes the distinct values and needs associated with antique and collector cars. Signet Insurance Group would like to share how classic car insurance differs from regular auto insurance, and why it is important to pick the right policy for your prized possession.
What Makes a Car a Classic for Insurance?
Before covering classic car insurance, we need to understand what qualifies as a “classic car.” While definitions may vary among insurance companies, a classic car is generally any vehicle aged 20 to 30 years or older. Antique cars are often classified as cars that are at least 25 years old, and collector cars are usually rare or exotic models, regardless of their age.
Classic Car Insurance Vs. Standard Auto Insurance
• Agreed Value Coverage: Unlike standard auto insurance policies based on actual cash value, classic car insurance often apply an “agreed value” coverage model. In this case, you and your insurer will need to agree on the value of the car when you take out the policy. If your classic car is totaled, the policy pays out this agreed amount. Regular auto insurance, in contrast, considers depreciation value and only pays the car’s value at the time of the claim which is often less than what you paid for.
• Specialized Repair or Restoration Services: Classic car insurance typically covers specialized repair or restoration services that may not be covered by a standard auto insurance policy. This is very important for classic cars as they often require specific parts or skilled craftsmanship to maintain their original condition or to build their parts from scratch.
• Limited Mileage: Classic car insurance policies often incorporate mileage restrictions, assuming that classic cars are not daily drivers but are instead used for exhibitions, club activities, parades, or just the occasional Sunday drive.
• Lower Premiums: Classic cars are usually driven less frequently, and hence, have less risk associated with them, leading to lower premiums than standard auto insurance policies.
Choosing the Right Classic Car Insurance
• Understand your car’s value: Before selecting a policy, accurately assess your car’s worth or value. This might involve having a professional appraisal or you will need to do your own research.
• Check for mileage restrictions: If you plan to drive your classic car more frequently than the occasional loop around the block, look for a policy with generous or no mileage restrictions.
• Specialized services: Ensure your policy covers specialized services that are commonly required for maintaining or restoring classic cars.
• Car club memberships: Some insurers offer discounts for memberships to classic car clubs, so consider this when choosing your policy.
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Remember, the value of classic cars does not always follow the standard depreciation rules. Many will appreciate over time, making classic car insurance a critical component of protecting your treasured investment. By understanding the key aspects of classic car insurance, you can choose a policy that ensures your vintage beauty receives the coverage it deserves. For assistance with auto insurance and more, contact Signet Insurance Group today.
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