Insuring Your Classic Car

If you have a classic car, street rod or any vehicle over fifteen years old that is worth more than it originally sold for when it was brand new, then you probably want to have it insured.

When shopping for car insurance, insuring your classic car is going to be a different ball game than insuring your regular driving around car.  When you buy a classic car insurance policy, you are essentially purchasing protection for the value of the vehicle as a collectible.

The time you invest in choosing the right classic car insurance coverage is well worth the value and peace of mind that a quality collector's insurance policy delivers for owners of classic automobile.

To start, lets look at the stipulations or requirements normally encountered while shopping for collector car insurance or classic car insurance:

* A decent driving record.
* At least 10 years driving experience
* No teen drivers on the policy or drivers with poor driving records
* Secure and out of the weather garage
* Proof that you have another car for daily transportation
* Collector vehicle insurance is sometimes limited by the age of your car, and if your car is too young it may not qualify for a particular policy.
* Limited mileage. You probably don't want to drive your creampuff car all the time, and your insurance company doesn't want you to either. Mileage limits have increased recently, though, so if you can live with 250 miles a month you're probably okay.

Second, what is your policy worth? Here is how you look at insurance.

1) Actual cash value:

This is what you usually get with ordinary insurance, and is based on replacement cost minus depreciation.

2) Stated value:

The insurance company pays up to the stated value of the car, but may not guarantee the full stated value. And deductibles of up to $1,000 usually apply.

3) Agreed value:

In most jurisdictions, those who provide collector car insurance or classic car insurance are allowed to insure for a value that you and your insurer agree upon. And for most autos, there is no deductible. If your $100,000 vintage Rolls get trashed, you get a check for 100 grand, plain and simple - which is exactly why collectors use special classic car insurance coverage.

Last, after you have purchased your insurance, do a periodic review of your coverage limits, because classic car prices are rising. What you insured your cherry classic for ten years ago may be a fraction of what it's worth today. And if you are restoring a vehicle, ask your agent to give you appropriate insurance.

There is no need to pay extra based on mileage statistics, if your car is up on blocks with no engine inside it. And as the car's value increases thanks to your hard work of restoring it, you should raise the coverage to keep up with the added value of the restoration.

Keep all your receipts and paperwork - for everything from parts and labor to expenses incurred to take it to a classic car show - so that you can document the total investment your collector's car represents. And take photos and keep them updated, for the same reason.

Classic cars will always have a following but many standard insurance companies just do not understand the special requirements these vehicles have. That is why you need to make certain that the agency you choose specializes in the area of classic and vintage cars.