In today's affluent society, more and more people are involved in the expensive hobby of collecting classic cars. It could either be rebuilding an old classic, or buying the car of their dreams. According to statistics, there are millions of classic car owners in the United States of America; with more being added to the list every year.
Having invested a significant amount of money and time on such collector vehicles, these automobile enthusiasts should look for reliable insurance companies to insure them for loss or damaged. The chosen insurance company should have specialized program with claim specialists who are knowledgeable and able to deliver excellent service including handling of their claims in a proper manner. Proper in the sense that it should be professional, timely and efficient when a claim is made.
However, many of these individuals make the mistake of assuming that their standard car insurance policy could cover their classic car as well. This is not so as there are many essentials, extras and discounts available. People who are involved in such hobby are usually passionate about restoring or up keeping their classic cars. Studies have shown that genuine automobile enthusiasts tend to take extra care in the way they use, maintain and store their vehicles. As such, some insurance companies are even willing to offer insurance rates that are lower than the costs of family auto insurance.
The peculiarities of classic cars are that the older they get, the higher their value whilst most other cars will depreciate in value as they aged. In this respect, some insurance companies in fact charged a higher premium and even placed restrictions as to its usage like limiting it for parades, classic car shows or organized meets. Some even go to the extent of limiting the number of miles the car can be driven monthly/yearly, as well as the distance it could be driven from your residence.
With such restrictions, one has to be particularly careful when assessing insurance policies covering classic cars. Although one may accept the fact that the premium is higher due to its value, but with such restrictions, it should bring down the costs of insuring classic cars. In order to lower the cost, some insurance companies would customize their policies in accordance to the needs of the applicant. They could lift the mileage restriction altogether but limit your usage of the classic car as your basic transportation. That is to qualify; you must have another vehicle to use for your daily needs like driving to work as an example.
Basically classic cars have been classified under the following categories:-. Antiques: 25 model years or older.
- Classics: 20 - 24 model years
- Collectibles: 15 - 18 model years
- Exotic cars: Less than 15 model years but considered to be appreciating in value
- Street rods: Manufactured before 1949 and has been mechanically/cosmetically altered
- Customs: Manufactured since 1949 and has been mechanically/cosmetically altered
- Kit cars: Built from purchased packages and assembled by experienced professional, manufacturer or dealer.
A classic vehicle is defined by its age at the time when the vehicle registration is sought. It varies from one state to another but as a general rule; most insurance companies consider vehicles aged 25 years or more as "classics".
Having knowledge of the various restrictions and categories of classic cars, it is also important for the car owners to understand how these policies work, which insurance companies provide them and how you can qualify for this type of insurance.
The driving history/record of the person applying for such insurance coverage is an important consideration. One or two minor traffic offenses or accidents are usually acceptable. However insurance companies would not offer coverages to person with major traffic violations/accidents within the past 3 - 6 years.
Major violations such as driving under the influence of alcohol, reckless driving and excessive speeding are a definite no; when come to issuing such policies. In addition, the applicant must have a minimum of five years or more of driving experience to qualify. The underwriter may even review driver's records of all other members of the family. Understandably, they need to be extra careful when issuing such policies for expensive classic cars.
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