Collector Car Insurance
Owning a collectible car may be a matter of pride for some; however, it also is an investment. You will need to protect your investment with the right collector car insurance policy. Since the repair and replacement of a collectible car can be cost prohibitive, a collector car insurance policy will financially save you in the event you fall victim to theft, an accident or damage.
Collector car insurance is a specific and specialized form of insurance that is quite different from your regular vehicle insurance policy. As such an insurance carrier has certain provisions that must be met prior to issuing a policy. The three main stipulations are mileage limits, vehicle age, and driver qualifications. In addition, most insurers have strict guidelines on vehicle storage when it is not being driven.
Limits on miles driven per year is usually no more than 5,000, although some companies have provisions for excess miles. The mileage driven is limited to car, hobby, and show activities for the most part; collector car insurance policies do not permit driving the insured vehicle for commuting or commercial activities.
Restrictions on the vehicle’s age are a primary factor in collector car insurance policies. In most cases, the car must be a minimum of 15 years old. Although some companies will set this number higher at 25 and occasionally at 35.
Collector car insurance companies will require certain driver qualifications before a policy can be issued. The overwhelming numbers of insurers require a minimum age of 25 with at least 9 years of driving experience. Some providers also require a clean driving record.
Once the conditions for the collector car insurance is achieved, you and the agent will set an agreed upon value for the vehicle. In a collector policy, the value of the vehicle is determined by an agreement between you and the insurer, unlike a regular policy which uses fair market value. Whatever amount you and the agent agree to is the amount that will be paid to you in the event the car is a total loss due to an accident or theft.
Selecting a well qualified insurance company for your collector car insurance is a necessity to protect your investment. Several companies specialize in the writing of collector car insurance policies, and it is best to choose one of these providers as opposed to selecting any insurance company. You will find it is the best policy for your investment
