« Do You need Insurance on a rental car?
Classic Car Insurance : Common Types of Collisions and Injuries »

Classic Car Insurance

Classic car insurance is for collector vehicles in the 15 to 25 year old range and above. These are vehicles which have been restored or modified and are more valuable than ordinary cars their age. Classic car insurance is very much like normal automobile insurance, but with special provisions because of their added value.

Classic cars must meet a set of criteria to qualify. Age is a main determining factor. In the United States, the minimum age requirement is set by each state. The minimum varies from around 15 years to 25 years in most states.
Certain limitations are imposed on the driving and maintenance of the vehicles. Most insurance companies limit the driving of a classic vehicle to 2500 miles or less per year. Driving to work, or using it commercially are not allowed. Many policies also require the vehicle be kept in a garage to help maintain it’s value and that the owner has a second vehicle for everyday use. Often there are requirements on the driver as well, such as, a good driving record and a minimum number of years driving experience.

For a classic car insurance policy, the method for determining the value of the vehicle differs from an ordinary car insurance policy. With some exceptions, the value of the insured car is a prearranged agreed value. In contrast to standard insurance where the provider determines the value of the vehicle, the classic car insurance provider agrees on an amount with the owner and must pay according to that amount if there is a loss or a claim on the car.
Surprisingly, the insurance rates on a classic auto policy are usually better than on policies for regular vehicles. This is due to all the stipulations on the maintenance, and use of the car and the qualifications imposed on the driver.

    • This entry was posted on Friday, October 20th, 2006 at 1:05 am and is filed under Classic Car Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

    Leave a Reply