Basic Information on Classic Car Insurance

In today's affluent society, more and more peopletheir policies in accordance to the needs of the
are involved in the expensive hobby of collectingapplicant. They could lift the mileage restriction
classic cars. It could either be rebuilding an oldaltogether but limit your usage of the classic car
classic, or buying the car of their dreams.as your basic transportation. That is to qualify;
According to statistics, there are millions of classicyou must have another vehicle to use for your
car owners in the United States of America; withdaily needs like driving to work as an example.
more being added to the list every year.Basically classic cars have been classified under
Having invested a significant amount of moneythe following categories:-. Antiques: 25 model
and time on such collector vehicles, theseyears or older.
automobile enthusiasts should look for reliable- Classics: 20 - 24 model years
insurance companies to insure them for loss or- Collectibles: 15 - 18 model years
damaged. The chosen insurance company should- Exotic cars: Less than 15 model years but
have specialized program with claim specialistsconsidered to be appreciating in value
who are knowledgeable and able to deliver- Street rods: Manufactured before 1949 and has
excellent service including handling of their claims inbeen mechanically/cosmetically altered
a proper manner. Proper in the sense that it- Customs: Manufactured since 1949 and has been
should be professional, timely and efficient when amechanically/cosmetically altered
claim is made.- Kit cars: Built from purchased packages and
However, many of these individuals make theassembled by experienced professional,
mistake of assuming that their standard carmanufacturer or dealer.
insurance policy could cover their classic car asA classic vehicle is defined by its age at the time
well. This is not so as there are many essentials,when the vehicle registration is sought. It varies
extras and discounts available. People who arefrom one state to another but as a general rule;
involved in such hobby are usually passionatemost insurance companies consider vehicles aged
about restoring or up keeping their classic cars.25 years or more as "classics".
Studies have shown that genuine automobileHaving knowledge of the various restrictions and
enthusiasts tend to take extra care in the waycategories of classic cars, it is also important for
they use, maintain and store their vehicles. Asthe car owners to understand how these policies
such, some insurance companies are even willingwork, which insurance companies provide them
to offer insurance rates that are lower than theand how you can qualify for this type of
costs of family auto insurance.insurance.
The peculiarities of classic cars are that the olderThe driving history/record of the person applying
they get, the higher their value whilst most otherfor such insurance coverage is an important
cars will depreciate in value as they aged. In thisconsideration. One or two minor traffic offenses
respect, some insurance companies in factor accidents are usually acceptable. However
charged a higher premium and even placedinsurance companies would not offer coverages
restrictions as to its usage like limiting it forto person with major traffic violations/accidents
parades, classic car shows or organized meets.within the past 3 - 6 years.
Some even go to the extent of limiting theMajor violations such as driving under the influence
number of miles the car can be driven monthlyof alcohol, reckless driving and excessive speeding
yearly, as well as the distance it could be drivenare a definite no; when come to issuing such
from your residence.policies. In addition, the applicant must have a
With such restrictions, one has to be particularlyminimum of five years or more of driving
careful when assessing insurance policies coveringexperience to qualify. The underwriter may even
classic cars. Although one may accept the factreview driver's records of all other members of
that the premium is higher due to its value, butthe family. Understandably, they need to be extra
with such restrictions, it should bring down thecareful when issuing such policies for expensive
costs of insuring classic cars. In order to lower theclassic cars.
cost, some insurance companies would customize