ny car enthusiasts know there is a big difference between an old car and a car that has become a classic. Auto insurance providers also know the difference and insuring a classic, antique, or dealer collection car is a very different matter than insuring a car that only has years, and kilometers, on it.
Value Difference: Old vs Classic Car
Your car doesn’t instantly become classic or antique because of its age and if you have an older car, you’ll want to make sure you have the right insurance for it.
Generally, vehicles are rated by insurance companies based on various factors, and they decrease every year. When an older car is covered under standard insurance coverage, it will be assessed in a standard way. This means that the insurance company handles it as if it were just an old car – in other words, second best.
A vintage or classic car is a completely different matter. Classic cars need to be evaluated in a different way as they are usually better because of the money, effort and time invested in keeping them in great shape. Therefore, an evaluation by a professional should usually ensure that this classic vehicle is warranted for the right price which is often greater than what the standard package offers.
Standard insurance coverage is designed for vehicles that are used as daily cars – for commuting to work, running errands, and taking children to institutions, for example.
Classic (or vintage) insurance coverage, on the other hand, is for vehicles that are not expected to see this type of use. As a rule of thumb, classics, collectibles, and vintage cars are kept and only out for unique events or pleasures to show off.
Because of the differences in use, as well as the difference in value, auto insurance for classic vehicles protects the car from the unique dangers of owning a classic car or collection agency (for example, greater replacement costs) while also meeting the minimum insurance requirements of having to require a highway.
Classic car, collection agency, or vintage car plans are not available with all auto insurance providers. There are companies that focus on this type of vehicle insurance to ensure the specific needs of car owners are met.
When you insure your car under classic or classic car insurance coverage, there are often a few limitations you need to think about. The plans weren’t designed for cars that are owned every day, for example. Often these plans also limit the use of the car (not racing or off-road) and some limit the annual variation of kilometers owned.
If your classic car is owned every day, it may not be approved for the collection agency’s car plan. It is important to be honest with your insurance company about how you use the vehicle to make sure it is properly covered. If an insurance claim is filed and the car is used beyond the limits of the plan, the result is that the claim is rejected.
Guaranteeing Your Old Car
If you’re not sure what type of package your old car needs, try talking to an insurance professional. Based on your age, price, and use of the car, you can determine whether you need a standard plan or a specific collection agency car plan.
Keep in mind that if your car is worth more than the year’s car, the make and model will usually be due to repairs or adjustments, it’s important that the insurance company understands this, or you won’t have coverage for that worth. Guarantee your old car properly, so you won’t lose your financial investment in the event of a failure.