Classic Auto Insurance: Stuff You Need To Know
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If you are the proud owner of a classic car, you don’t want to make the mistake of insuring it like you would the family mini van. In the event that you get in a wreck, you will surely regret that choice if you did. When your classic car is declared a total loss by a standard auto insurance policy, you will receive the actual cash value of your vehicle, which in most cases will be quite low and won’t make a dent in the true costs.
There are specific guidelines that must be met in order to buy a classic car insurance policy. There is a minimum number of driving years that you must have under your belt. You cannot use the car for business purposes.
You must prove that you have another car that you use regularly. You cannot drive the vehicle over a set number of miles per year and the automobile must be a certain number of year’s old. If you meet these criteria, then you may be able to purchase classic car insurance.
All car insurance companies won’t offer coverage for these cars. It is cheaper to insure a classic car than it does for a standard car. The ideal kind of auto insurance plan for classic cars is an agreed value policy.
Before you buy a policy of this type, you must sit down with an agent and agree on a value that will be paid in the event that your vehicle is totaled. The insurance representative will provide you with an estimate for this kind of plan.
Your insurance provider will pay for the repairs if you are in a wreck and the damages are less than the agreed value. However, if the damage is greater than the amount that was agreed upon, you will only receive the preset amount. There is no doubt that this is the preferred auto insurance policy for a classic car.
Standard auto insurance is usually more expensive than the classic car insurance, but those companies have some criteria that must be met in order to qualify for their programs in order to get those good rates.
