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Auto Insurance for Classic Car Owners

By Compuquotes Team on October 16th, 2009
Auto Insurance

If you own a classic car, you might save money by purchasing specialty insurance that limits the use of your car and comes with lower premiums.

Why Consider Classic Car Insurance?

You may have standard auto insurance on that classic blue 1957 Chevy with the Delray trim package. But your car insurance policy may be costing you money for high deductibles or, worse, may not entirely cover your classic. If you don't put your dream car on the road all the time, you may be paying for auto coverage you don't need. All car insurance policies--and companies--are not the same. If you put your '32 Ford on standard car insurance, expect to pay upwards of 500 percent higher premiums than if you covered it with classic specialist insurance.

Specialist insurance can be tailored to the needs of classic car owners. If you're shopping around for car insurance quotes, you shouldn't rule out pricing several classic car insurers. Pick and choose the features that apply to your make and model and the work you've put into it.

Examining Classic Car Insurance Plans

Insurance companies that carry classic car coverage offer a range of options, including standard coverage for collision, comprehensive, and liability. But it pays to scrutinize the small print regarding how the car is stored and the kinds of trips you're allowed to make under the terms in the policy.

Before signing on the bottom line, be sure that any classic vehicle insurance policy you take matches the agreed value of your prized possession. Standard car insurance is based on depreciation, while your classic car should maintain or gain value over time. That's why you and the insurance company must see eye-to-eye on the current value. If you own a classic or collector car, be certain you do not insure it for
Actual Cash Value.

Classic Car Insurance Rates and Options

Whether you're a classic car collector or weekend hobbyist, your classic car insurance premiums may be based on limited annual mileage, whether you have a deductible, and the amounts you select for collision, comprehensive, and liability coverage. Options come with restrictions. For example, you may be required to store your classic car in a locked garage. Special rates may apply if the vehicle is still under restoration.

Above all, you should know that insurance companies that offer classic car insurance frown upon your using the car to shop for groceries or entering formal or impromptu racing events. You probably also won't be able to drive your car to work or teach your teenager how to drive with a classic car policy. For many, the special coverage is perfect if you only plan to attend car shows or display your vehicle in a local parade. Those are small compromises to pay for lower rates and special classic coverage.

Insurance companies may also post restrictions on the age of the driver or a minimum length for holding a clean driving record. Hot rods and modified cars are often more difficult to insure because it's difficult to agree upon values when the car has custom parts.

And don't expect periodic coverage where an insurance company drops premiums during winter months when the classic car is locked in a garage. You need theft coverage all year long.

See average annual insurance rates for more than 2,000 vehicles

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