classic car insurance - By: DavidCarter

Classic cars require a special type of insurance usually referred to as classic car insurance by the industry. Classic car insurance is not a standard type of coverage and has special protections for your investment. Nevertheless, before a policy can be written, your automobile muct qualify under the providers classic car insurance requirements.

In large part, insurance companies define the age of a classic car as one that is at least 15 years old. In some States, a more broad definition of a classic car is used, be sure to check your state definition to ensure your car is indeed a classic.

The insurance companies have stricter requirements on classic car insurance than they do on regular vehicle coverage. In addition to the age of the vehicle, insurance companies will require several other conditions to be met. These requirements will include the minimum age of the driver, how many years he has been driving, storage of the vehicle, and a limit on annual mileage. Furthermore, the insurer will want to set an ‘agreed upon’ value for the vehicle .

The majority of states permit the insurance company and owner to arrive at an agreed value of the vehicle. 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. Unlike a regular vehicle, where ‘the blue book’ or fair market value determines the total loss value of a vehicle.

In regards to the age and experience of a driver, most companies will require a driver be at least 25 years old and have a minimum number of years driving. Of course, an insurance company will also check your driving record prior to issuing a classic car insurance policy.

In addition to the age and experience of the driver/owner, a mileage limit will be assessed on the classic car. Insurance providers vary on this limit, some allow up to 5,000 miles per year while others may permit more. If you want to reduce your monthly premium, you may be able to select a lower mileage limit with some companies. Although the insurer will not regulate you driving the car to shows, clubs or hobbyist activities, you will be limited from using the car for many other purposes, including daily commutes, and commercial purposes.

Using a reputable firm that specifically deals in classic car insurance is the best way to ensure you are getting the protection and value for your classic car. Usually these specialized companies can serve you better than a regular insurance provider.

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