September 5, 2011

How To Modify Car Insurance Coverage For Non Functional Vehicles

Many drivers own non functional vehicles such as project cars that are being slowly repaired. While these vehicles don't need car insurance coverage if they're never going to be moved - at this point, they still need to be covered as personal property or as art pieces. Car insurance coverage is absolutely necessary when repairs are being completed to avoid illegal operation of a non functional vehicle.

The only type of car insurance coverage that non functional vehicles would realistically need is comprehensive coverage. Comprehensive coverage pays for damages to a vehicle due to things like storms, theft and vandalism. A non-functional vehicle doesn't need collision insurance, liability insurance or any other insurance coverage that pays for damages due to an accident. Comprehensive coverage, however, can be very useful in certain situations. Heavily modified vehicles may also need custom parts and equipment (CPE) coverage, which pays for modifications in excess of several thousand dollars. An insurance agent may be able to recommend other coverage add-ons that are particularly useful for insuring certain types of vehicles while they're not being actively driven but, in general, comprehensive coverage will be enough.

The trouble is that many car insurance companies will refuse to offer coverage on a vehicle if a driver is paying for less than the state required minimum coverage limits. While these limits are usually set at a low, affordable level, they're totally unnecessary if a vehicle isn't being driven. Drivers should call a few insurance companies to explain their situations; special policies may be available that take a vehicle's non-functional status into consideration. However, if there's any chance of a vehicle being driven, a policy with state-required minimums will probably be necessary. Even so, there are several ways to lower the costs of these policies to keep non-functional vehicles from becoming too much of a financial burden.

The best way is to simply compare as many quotes as possible. Collect insurance quotes for the same coverage and deductible levels and see if any policies offer a superior overall value. It's also worth remembering that car insurance companies will look at a driver's record, garaging location and other factors when setting rates, regardless of whether or not a vehicle is being actively driven. It may be possible to get a car insurance discount or two by taking driving courses or by simply keeping a clean record. Drivers should call their insurance providers to ask about discounts and weigh all available options before selecting a car insurance policy. This is the best way to avoid overpaying for insurance coverage on a non-functional vehicle until the vehicle's capable of being driven again.