TUESDAY, MAY 25, 2021
Do I Need a Different Type of Auto Insurance for a Classic Car?
Classic cars are often brought out more once the weather is nice as their owners bring them out for shows or to give their neglected car some time on the road. If you have a classic car or plan on getting one, it is important to invest in the right insurance.
By definition, a classic car is one which is between 19 to 24 years old and in its original condition. Anything over 25 years old is considered an antique. While these may just be semantics, insurance companies use them for determining insurance rates.
Most cars depreciate over the course of their lifespan, but a classic or collectible car may increase in value. A specialty insurance policy may be needed when it comes to a classic car, because the book value of a car over 20 years old would be close to nothing. However, if that car has been restored, then it would certainly be worth more. In most cases, classic car owners can have a policy with an "Agreed-On Value" so if anything were to happen and the car became a total loss, you would receive that amount as opposed to the book value.
The other thing to consider when insuring a classic car is the amount of miles you drive. Some policies will restrict miles, allowing the owner to only participate in local cruise nights and parades. If you plan on enjoying your classic car and taking it longer distances, you'll want to communicate that to your insurance agent.
Classic Car Insurance vs. Normal Car Insurance
At a glance, classic car insurance and normal car insurance aren’t that different. Both policies offer a lot of the same coverages, including:
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Comprehensive Coverage: Comprehensive coverage provides compensation for damages to the vehicle caused by fire, wind, hail, lightning, smoke, theft, etc.
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Collision Coverage: Collision coverage provides compensation for damages to the vehicle caused by a collision with another vehicle or object.
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Liability: Liability insurance covers bodily injury and property damage you may cause someone else while operating the insured vehicle.
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Medical Payments Coverage: Medical payments coverage covers medical bills you and your passengers may face after an accident.
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Uninsured/Underinsured Motorist: This insurance covers damages incurred in an accident involving another driver who is not carrying insurance.
There are some additional coverages available for classic cars, however, as well as higher limits. Keep in mind that because the type of vehicle is inherently different, you will need a different policy even if you plan on carrying normal coverage. If your vehicle falls into the classic car range, an insurer may not cover you under a basic personal auto insurance policy. Speak with your insurance agent about your coverage options when it comes to insuring a classic vehicle.
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