Car Insurance : Insuring A Classic Car
Insuring a classic car is not as easy as insuring a more standard vehicle, so it is important to know a little about how the policies differ and what restrictions to watch out for. First, you need to be sure that your vehicle can be truly categorized as “classic.” Different insurers will have different definitions of what can be insured as a classic car, so you will always need to check with each prospective insurer if they will classify your car as a classic one or not. Most insurers will actually accept classic cars on their standard car insurance policies, but you may face high premiums if you choose to do this. Also, you will not benefit from what is the biggest advantage of buying specialist insurance, which is the agreed value clause (or the minimum amount that will be paid to you should your car be stolen or involved in an accident or stolen).
Most often, insurers will consider the current market prices of your vehicle in order to calculate how much to pay you for any claim that you file. Deciding on the market value of a classic car is a rather intricate issue, and that is where the difficulty arises. It is not uncommon for insurers to place a lower value on your vehicle that you would like, and you will have to accept the amount paid even if you do not believe it was high enough. One of the most price-sensitive markets is the one for classic cars; in fact, the value for the same model car can range from 50% to 500%. Even if your car is a limited edition vehicle, is in mint condition or has a provenance, it is nearly impossible for you to get the full value for it if you do not have an agreed value clause. Keep in mind that insurance companies, especially the well-known ones, are in the business to pay out as little for claims as they can.
You need to realize that there will be stringent rules attached to a classic car insurance policy that incorporates an agreed value clause. A yearly mileage maximum is one such rule, as it is expected that a classic car will be driven less, and the classic car insurance policy will reflect this guideline. Other restrictions might include adding security measures and limiting the number of classic car shows that you can take your vehicle to. These restrictions that are associated with classic car insurance policies, will generally allow these types of policies to be reasonably priced, but you should expect to pay a higher rate if your vehicle is a model that is considered very rare and in demand. The most important thing to keep in mind is the agreed value clause, and you should be willing to pay higher premiums in order to get an agreed value inserted into your policy that you are happy with.
Category: Car Insurance
