Do you have an old or classic car you would want to insure? When we mean old, we are not talking about 5 or ten years old cars; we are talking about cars made before 1998. If you have such type of car and plan to ensure them to keep their value, there are certain things you need to know.
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Find out whether your car qualify for classic car insurance
Generally, normal car insurance doesn’t have provisions for insuring a classic car. If you need to insure your classic car, may have to take another car insurance policy.
For an insurance company like American Insurance to consider you and your car for classic car insurance, there are certain criteria you need to meet. The car must not be your main vehicle. You must have another car you drive more frequently. You should also have a valid driver’s license and secured structure you store your vehicle. Obviously, the car should not be more than 25 years old. If your car is older than 20 years since it was manufactured, you are no longer dealing with a classic car but an antique one.
How is the insurance amount determined?
Again, your normal car insurance provides coverage up to the actual value of the car. But for classic car insurance, the insurance amount is determined by you and the company. This determination is based on the valuation of the car by research carried out by an underwriter, a professional appraisal, or a classic car valuation guide.
What a typical classic car insurance policy covers
As stated earlier, a classic car insurance policy differs from the traditional car insurance policy. Apart from providing cover for damage to the car, there are other benefits you can gain from a classic car insurance policy as outlined below.
- If your personal items are stolen or vandalized, you will be reimbursed
- If your car is due for the car show but breaks down, the company can offer to pay for your expenses
- Emergency travel expenses
- Lost key return
- Emergency lockout services
- Roadside assistance
- Emergency flatbed towing
Some companies like American Insurance can cover all of the items listed above while some other classic car insurance companies may provide cover for some. When selecting the best classic car insurance package, it’s important to consider what their policy covers and what it doesn’t cover. That way, you will be able to determine whether the policy is right for you and your car.
Difference between normal car insurance and classic car insurance
There is obviously a significant difference between your normal insurance policy and a classic car insurance policy. Let’s find out some of those differences.
Depreciation or appreciation
Your normal car loses value as it gains mileage. But a classic car may appreciate in value, especially when it has been properly maintained. However, your antique car starts depreciating once it has been insured. Based on this reasoning, you are going to receive a lower amount of indemnity if your antique car is totaled (completely damaged) in an accident.
Mileage restrictions
In classic car insurance, there are certain restrictions placed on the number of times you drive your classic car. However, a normal car insurance policy doesn’t have any mileage restrictions.
Classic car insurance premiums of insurance companies like American Insurance are significantly lower than normal car insurance premiums. Sometimes, they may even be lower by 45%, although this depends on other factors as well.
Conclusion
Owning a classic or antique car is certainly a great investment of your money and time. However, ensuring such a car shouldn’t be much of a hassle for you. There are policies you can take to effectively give protection to your classic car. The above information will be helpful to you when looking for the most ideal option when taking up a classic car insurance policy.
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