February 10, 2010

Are There Special Auto Insurance Programs For Classic Cars?

Classic cars, or vehicles manufactured before 1974, typically require a specialized type of auto insurance coverage. With a regular vehicle, coverage for auto insurance is based on the original value of the vehicle minus yearly depreciation. In the instance of a classic car however, the worth of the vehicle can’t be calculated in the same way as the vehicle’s value increases over time. Therefore, there are several ways that auto insurance coverage is determined for collector automobiles. In some instances, the value of the vehicle is agreed on between the specialty insurer and the insured, and coverage is based on this agreement. Or the value is determined by the current market prices listed for similar vehicles in popular collector car periodicals. In some instances, the monetary worth of the vehicle is assessed by an appraiser while in very few instances, the value is based on the original cost of the car plus upgrades minus the annual depreciation.

Because a classic vehicle is used for a different reason other than an everyday auto, it’s best to find a specialty auto insurance program that specifically covers collector cars. By choosing one, individuals can receive the agreed full value for their vehicle if they suffer a loss, as this type of auto insurance claim is often difficult to process with a regular carrier. Coverage for this type of auto insurance can also include payment for the loss of spare parts, towing services and reimbursement of medical and travel-related costs incurred from a mechanical breakdown or accident on the way to a car show event. Also, participants who opt for classic auto insurance coverage obtain discounts for joining classic car clubs and agreeing to restrict the number of miles they drive each year.

A number of specialty insurers offer auto insurance quotes classic cars. Some of the well-known insurers include Heritage Motor, Performance Direct, Footman James and Grundy Worldwide. As an auto insurance program for classic cars with its own set of criteria for insuring a vehicle, there are also a number of restrictions. Cars can’t be used as a daily means of transport other than only for collector events. In addition, the insured must have a daily use vehicle for each driver in his household. Classic cars should be stored in a locked garage when not in use and remain in excellent condition. These types of cars, in most cases, can only be driven 1,000 to 6,000 miles annually.

Specialty auto insurance does exist for the classic car owner. Because specialty insurers understand the unique insurance requirements for classic cars, your best option then when selecting auto insurance for your classic vehicle, is to choose one of these companies.