Do you own a classic car like a gull-wing Mercedes or 1967 Jaguar XKE? You could be paying too much money for inadequate coverage. If you already have a classic car, or are thinking of getting one, take a look at these pointers to help you navigate the maze of insurance:
Standard policies won’t help
Insuring a classic car with a standard auto policy is a serious mistake for different reasons. For one, standard insurance is based on the idea that a car’s total value will depreciate with time.
But classic car is like old wine, and its value is likely to appreciate, particularly if you have a restoration in mind. You really don’t want to get a depreciated value if something happens to your Chevrolet Bel Air. However, if you take a standard cover, that’s usually what you’ll get.
Lack of Standardization for Classic Car Definitions
There is a frustrating lack of standardization when it comes to categorizing classic cars, collectibles, antiques, and vintage models. If you already know what type of vehicle you want, you will have to check with each insurance company you are considering.
Wish there was a better answer, but the reality is that some companies say the car should be over 20 years old, others over 36, and some have multiple categories. Our best recommendation is to have headache medicine within reach during this process.
Driving and Storing Your Classic Car
You hopefully already have a cozy garage equipped with all the special tools and items you’ll need to baby your classic car. Avoid storing it anywhere else, but if you have to be sure to cover and protect it as much as possible. You’ll have to tell an insurance company where you’ll be storing it, and how often you’ll be driving it.
It’s cheaper than you think Why?
Because insurance companies are mainly looking at the total value of your classic car and how it’s going to be used. If you are going to be driving the Chevy Bel Air (which you inherited from Aunt Mabel) only in auto shows and to and from car parades, the chance of slamming into another car or getting T-boned on the expressway is pretty meek. These cheap policies usually come with lot of caveats, however.
Find Out What Disqualifies You for Insurance Coverage
You’ve no doubt been comparing the types of coverage offered on your classic car for the best deal, but don’t forget to ask about the types of things that are not covered. If you plan to modify it, for instance, it could disqualify you from getting insured. Basically, check before you change anything.