Insurance for your collector car is a little different from the insurance for your regular car. There are several things that are taken into account. Here is a quick guide to collector car insurance.
Before you get insurance for your collector car, you need to know its value. Find a professional who is an expert in appraising classic or collector cars. They usually charge a fee to conduct an appraisal, but it is well worth the expense. They will completely evaluate your vehicle, taking into account the condition, any improvements, and its rarity. That way you will know who much coverage you need.
Value for a collector car is a little different from value for a regular car. Coverage is based on the car’s actual cash value which takes into account depreciation. Collector cars are insured on “agreed value.” This means that both the insurer and owner have agreed on what the car is worth. It includes enhancements, age, rarity, and other factors. If the vehicle is stolen, damaged, or destroyed, the value is the amount that the insurance will pay the policyholder.
Most insurance companies use categories to classify vintage vehicles. There are several factors that are used to determine which category a car belongs in, including improvements and age. The categories are typically as follows:
- Exotics – Less than 15 years old but still increasing in value
- Collectibles – Between 15 and 19 years old
- Classics – Between 20 and 24 years old
- Antiques – Vehicles that are 25 years old or older
- Custom – Vehicles that have been altered either mechanically or cosmetically and were made after 1949
- Hot Rods – Classic cars that have been modified for speed, typically with large engines
- Kit Cars – Vehicles built from packages that were built by a manufacturer or dealer, and were bought in the public sector
There are rules and restrictions that pertain to classic cars, how they are used or driven. These rules are quite different from those for normal vehicles. These restrictions usually differ by insurer. Some restrictions may include:
- The driver must have been driving a certain number of years (usually 5) before being insured to drive a classic car
- Reasons for the car being driven (daily driver or only to and from car shows)
- An alarm system for the car maybe required
- The car can only be driven a certain number of miles in a given year
- The type of storage facility or garage where the car is kept