Classic Car Insurance

April 24, 2008

If you are the proud new owner of a classic or antique car, you will want to take the best care of it that you possibly can. You may be wondering about insurance for your classic car. Generally, classic car insurance is not as expensive as regular automobile insurance. Some insurance agents are unclear about what is required for these beauties. They will try to sell you a regular, basic auto insurance policy. But, insurance coverage on a classic car is different than the coverage you would choose for a car that you drive every day.

A good insurance agent who knows his automobiles will know that classic cars are not driven anywhere near as much as most people drive their every day cars. When they are driven, they are handled very carefully, with no excessive speed or rough handling. Therefore, classic cars are not as apt to have an accident or cause an accident. These cars are also garaged a good bit of the time when they are not being displayed at a car show or taken out for a short run every couple of weeks to keep the battery up.

Most, but not all insurance companies have taken these facts into consideration and have devised a policy that is just for classic cars. They realize that these cars will not cost their company as much as an every day car might, and are kind enough to give the classic car owner a discount on their car insurance. You might even find an insurance company that will offer you what is called an ‘agreed value’ coverage.

This type of policy will cover the full insured value of your classic car just in case something should happen to it. This should not be confused with the standard policy, which will pay the actual cash value. This is different from the agreed value. The actual cash value is the cost to replace your car minus the amount that the insurance company determines that the car has depreciated. This depreciation could be a huge amount, so of course, the agreed value coverage is much preferred.

You do not have to worry about getting an appraisal for your classic car with most insurance companies unless you have a very rare or very expensive car. But, you may want to spend the reasonable sum that this would cost in order to find out how much your car is actually worth before you insure it.

If you already have insurance on the car that you drive every day, you can talk with your agent to find out if you can receive any other type of discount on your classic car insurance. It never hurts to ask!

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