Your classic car: top of the heap. Those features! This car stands apart! Unfortunately, the classic car attracts its fair share of thieves and vandals as well as admirers. Because they're rare and tend to be expensive, many large insurance companies don't even offer insurance for these beauties. That doesn't mean you can simply drive without insurance, however. Many states now require that your car, no matter the make and model, be insured, and you can face stiff penalties if you're caught driving without it.
Insurance for your classic car is available, but will take some research to find. A few companies like Hagerty, Leland West, and Norwich Union specialize in these products, so that is a good starting point. Unlike conventional auto insurance, in which you typically don't negotiate the maximum amount the insurance company will pay you in the event of a total loss, with classic car coverage, you need to come to an agreement with your insurance company on a specific amount they will cover. This amount can vary widely from car to car, depending on how much work has gone into it.
The type of insurance policy described above is called an agreed value policy, in which the agreed value is the maximum amount the insurance company will pay in the event of a total loss. They will then give you a premium quote based on the agreed value. The good news is that cost of classic car insurance is typically lower than convention auto insurance because of the low rate of claims made. This is likely due to the extraordinarily high level of care given to these cars both on the road and in the garage. However, not everyone will be eligible for this type of policy. Typically the following restrictions apply:
Age Requirement: many antique and classic car policies require that the driver be of a certain age in order to ensure that he or she has sufficient driving experience and is not in jeopardy of causing an accident. This makes this type of insurance particularly difficult for young and new drivers to obtain.
A lot of antique and classic automobile insurance policies have also imposed a minimum age limit for your vehicle, in order to determine whether. The characteristic limit is fifteen years old, so if your vehicle is less than fifteen years older you may have complexity securing antique automobile insurance for it.
Usage Requirement: there are strict limits on how your classic or antique car can be used. For example, you must have a garage or some other form of protective storage where the vehicle can be parked. Nor can the car be used for business purposes. And finally, there is a limit placed on the number of miles you can put on your car either monthly or yearly. Going over this mileage limit can put you at risk of losing your car's coverage. Therefore, you must also be able to prove that you own another vehicle which is used for normal driving purposes .
If your car can be considered a collectible, antique and classic car insurance is absolutely your best option. This form of insurance is designed to protect vehicles that appreciate in value over time rather than depreciate. If you cannot find classic auto insurance, then most insurance companies will allow you to purchase traditional insurance but you can expect to pay a higher monthly premium and receive less in a settlement if your vehicle is totaled. So if you're driving an antique or classic car and you can get specialized insurance locally take advantage of it. It's the least expensive way to protect your prized possession without losing a major investment.
Author Resource:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za , a leading South African Car Insurance portal.
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