Car Insurance

Classic cars require a special type of insurance usually referred to as classic car insurance by the industry. This special insurance is non-standard and affords the owner of a classic car optimum coverage for his investment. Although, Insurance companies have certain requirements to classify your vehicle under their classic car insurance program.

For the most part, a classic car is defined as one that is more than 15 years old. However, a few states define a classic car as 25 years or more, checking with your local DMV may help to clarify the age in your state.

The insurance companies have stricter requirements on classic car insurance than they do on regular vehicle coverage. Besides the age of an automobile, the insurance provider will have other prerequisites the owner must meet. The age of the driver, his driving record (with a minimum of years driving), storage of the car, and limits on annual mileage are all additional stipulations. In addition the insurance company will negotiate an ‘agreed upon’ value for your classic car .

Most states allow the insurer and owner of a classic car to decide on an agreeable value of the car. You and the insurance company will set a value on the classic car that will become part of the policy. The amount is the total loss value of the car in specific monetary terms. This is much different from a standard policy in which total loss is determined by fair market value or the blue book value.

As for the age of the driver, most providers require a driver to be at least 25 and have at least 9 years driving experience. Naturally, the insurer will also request a DMV report before writing your classic car insurance policy.

Mileage is another concern of the insurer, this number may vary from one company to the next, but generally it is around 5000 miles annually. Some providers will allow you to choose a lower annual mileage, which may lower your monthly premiums. In many cases the insurer will not restrict your use of the car to drive to car clubs, classic car events or car shows, they will restrict your use for commercial purposes or daily commuting.

To get the best out of your classic car insurance, find a company that specifically writes this type of policy. You will find that specialists in this field are better situated to handle your specific needs.