If you are purchasing a collector car, classic car or antique car, you will need to purchase some type of insurance – even if you have no intention of driving the vehicle. Antique car insurance policies are designed to protect your vehicle against theft, vandalism and certain types of damages when the car is left in storage.
If you are financing the investment, your loan provider may require you to obtain a certain amount of antique car insurance coverage. Here are 10 important tips for buying antique car insurance:
1. Find out what the stated and agreed value of the vehicle is. Your insurance company may be insuring the car for its agreed value instead of your stated value. Make sure you are clear about the antique car insurance terms so that you can make the most informed decision.
2. Learn about limitations and restrictions. Every antique car insurance policy has its own set of limitations and restrictions. If you only plan on driving the car to a show now and then, you may only need very limited coverage. Make sure you are choosing a plan that best meets your needs.
3. Know the status of your driving record. If you are planning to drive the antique car regularly, you may need to purchase comprehensive coverage. Your premiums will depend on your driving record, so make sure you are aware of any moving violations and other driving-related incidences that may hike up your insurance rates.
4. Shop around. Don’t be afraid to shop around for the most competitive antique car insurance quote. Many insurance companies will only need your driver’s license number and vehicle registration to give you an average quote for your antique car over the phone or online.
5. Be aware of annual and monthly rates. Annual and monthly rates for antique car insurance can vary significantly, depending on the type of coverage you have. Make sure you are comparing annual and monthly rates of different insurance companies so that you can make the best decision.
6. Ask about discounts. Make sure that the insurance company is aware of your good driving record, any safety equipment installed on the antique car, and information about where you plan to store your vehicle. You may be eligible for discounts based on these criteria.
7. Find out what the parking and storage restrictions are. Some insurance providers require that the antique car is locked safely and securely in a garage or trailer, rather than an open parking lot. Make sure you are aware of these eligibility requirements when selecting your antique car insurance policy.
8. Ask about conditions. Many antique car insurance providers require applicants to meet certain criteria, such as having at least 10 years of driving experience and proof of a secure storage location. They may also require you to own another car that is of a certain range of years.
9. Consider the amount of restoration and maintenance work required. Your insurance agent may need to modify your premiums if your car requires certain types of restoration work or maintenance.
10. Review the total coverage amount. Make sure that the amount of coverage you are investing in is close to what the car is worth. Get a formal appraisal of your car’s actual value so that you can make the best decision when selecting your coverage amount.
“What Qualifies for Classic Car Insurance?”, Hagerty.com.
Philip Reed, “10 Steps to Buying Auto Insurance,” Edmunds.com.
“Things to Look for When Insuring Your Antique or Classic Car,” HubcapCafe.com.