Antique And Classic Automobile Insurance

Written By: Graham McKenzie on October 31, 2009 No Comment

When it comes to vehicles, classic cars are totally at the peak of the pyramid, with their amazing features setting them far separately from the rest of the throng. Unluckily, classic cars tend to draw a decent allocate of thieves and vandals. Additionally, as classic cars are unusual and lean to be expensive, some great “major player” insurance companies and agents will not still offer insurance for them. But now as it can be gently hard to find the right kind of insurance for your typical car that doesn’t indicate that you can just drive approximately without any insurance. Many states require that your vehicle be insured.

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 best option to pursue in terms of insurance for your classic car is the ?Agreed Value? policy. Before purchasing this type of policy, you must sit down with the insurance agent and agree to the value of your car. If the vehicle is ever lost or destroyed, then this is the amount that will be paid by the insurance company. At this meeting you will also receive the quote for your monthly payment. This too distinguishes antique and classic car insurance from traditional insurance. Antique and classic car insurance premiums tend to be significantly lower than what you would pay for traditional insurance. However, in order to qualify, you must meet all of the following criteria:

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.

Age of the Vehicle Requirement: many of these policies have imposed a minimum age limit for your vehicle to be considered an antique. Typically, the limit is 15 years old. So if your car is less than 15 years old it may be difficult to get antique car insurance.

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.

Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za, a leading South African Car Insurance portal.