The weather is getting warmer and it’s that time of year when classic cars begin emerging from their slumber. It’s always a fun sight to see these beauties driving around town. But did you know that classic cars are entitled to their own special insurance?
The definition of a classic car can depend on the insurance carrier, but generally, a classic car is defined as a “fun-to-drive” vehicle that maintains or appreciates in value. These cares are used primarily for pleasure. Some examples of classic cars are as follows:
There are specialized coverages that come with classic car insurance and your classic or collector car insurance policy may actually cost you less than a standard auto policy. This specialty insurance covers your collectible vehicle for an agreed upon (often “guaranteed”) value that is mutually agreeable to you and the insurance company.
To be eligible for such coverage, there are some parameters that are generally outlined by insurance companies. Most insurance companies require that a collectible car not be used as a primary driving vehicle. They also might stipulate a maximum annual mileage restriction, the ceiling for which will depend on your state but usually won’t exceed 7,500 miles per year. Most classic vehicle policy holders are limited to using the automobile only for pleasure driving or a hobby activity, such as participating in a parade, show, or exhibition. Many insurers will not cover the classic auto to drive to work, shops, or other destinations.
These classic car policies typically have a term of 12 months that includes coverage for liability, collision, comprehensive, medical payments, and uninsured/underinsured motorists. State-mandated liability coverages extend to collectible cars as well as regular private-passenger vehicles. In terms of optional coverage, apart from the standard ones such as collision and comprehensive, there are also options unique to classic cars.Examples of options offered by most classic car insurers are:
Owning a classic car is fun and exciting! Ensuring you have the right coverage is just another important piece in protecting your unique vehicle. At Ramey King, we’d love to sit down and talk with you about the right kind of coverage for your classic. Please contact us today for a quote!