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How to Tell if You Need Classic Car Insurance

Posted by  on 2022-02-16  10:00:14 AM
How to tell if you need classic car insurance

Whether you just splashed out on a new car or have owned one for many years now, we all need car insurance for peace of mind. Of course, we want to know that our vehicular investment is well protected in light of any unforeseen circumstances. However, did you know that if you have an antique or collectible car, then you may be eligible for classic car insurance? 

That’s right, this special kind of auto insurance is intended specifically for vehicles of a certain age. Want to learn more about classic car insurance (and if you need it)? Keep reading to find out more!

What is classic car insurance?

Classic car insurance is a special kind of insurance designated for collectible, antique, vintage, or rare cars that have been purchased for personal or investment use. Wondering why vehicles of this kind need special insurance coverage? Well, classic cars are built differently than the modern everyday vehicles we see on the street today. Their operating systems, parts required, and maintenance needed will be very different from standard cars, which is why special insurance is needed to cover it.

Can any car qualify for coverage?

Not quite. In order to be eligible for classic car coverage, you will need to prove that the car is not your everyday vehicle. This means that you’re not using it for day-to-day requirements or more than 8,000 kilometers each year. In addition, some insurance providers will require your car to be over 25 years old, although this can vary by broker. 

Why Classic Car Insurance is Important

Classic car insurance is critical for owners of such vehicles. Standard car insurance policies are not sufficient for the proper protection of a classic car. One of the biggest reasons this is important is that with regular car insurance, the vehicle’s value depreciates with time. This will mean a lower payout as the years go by. However, with classic cars, the opposite holds true. They actually appreciate with time, and thus standard auto insurance will not consider this appreciation of value.

You may end up with significant losses down the line if your classic car is damaged, but is only covered under standard insurance. In addition, traditional car insurance offers collision and liability coverage, but at a much lower cost than standard auto insurance. This is because the car is being driven significantly less than an available vehicle, which reduces the risk potential.

Another great benefit of this type of insurance is that you may be able to remove the road, liability, and collision benefits while your car is being unused. This is particularly handy for car owners who use their classic vehicles only seasonally, for example, in the summer. In such a case, your broker would consider your car a seasonal vehicle.

How does class car insurance work?

Different insurance brokers will use different metrics and standards to protect classic cars. On a general note, though, the insurance will cover the vehicle for the amount agreed upon between the car owner and the insurance brokerage. The following are some of the main factors to consider when it comes to this kind of insurance.

Car Value

Many standard auto insurance policies do not cover the theft of a classic car. Insurance intended for these cars, on the other hand, takes into account total value, including clauses for payout in the case of theft.

Mileage Restrictions

As mentioned above, classic cars typically have stipulations on mileage. Owners will thus be asked to sign off on a mileage declaration to stay under the required mileage (typically, 8,000 kilometers a year). The mileage limit will be lower for owners who use their cars seasonally or limitedly. It can also be increased for those who use their classic cars on a more regular basis. 

Additional Coverages

Classic car policies also include economic recovery and roadside assistance. However, some types of classic cars may not be eligible for these coverages, as they are at a high-risk potential. You will also be covered for your vehicle in the case of physical damages. As well, there is no need to worry about depreciation rates applied to your car, as you will get back the total amount of your car’s insured value.

Should I get classic car coverage?

Well, that depends on your personal situation. However, if you’re a classic car owner looking to protect your car from unforeseen circumstances, then getting traditional car insurance is absolutely worth it. The terms that cover your unique car are crafted to protect it, instead of general auto insurance that does not include stipulations for antique and collectible vehicles.

In addition, the fact that your car’s value appreciates with time indicates that it is a growing asset. It will thus need special coverage to compensate for potentially heavy losses in the future. In some cases, classic car insurance can play out to be cheaper than standard car insurance, so why not go for it? Your car (and future self) will thank you down the line!

You have a one-of-a-kind car; therefore, it is only natural that you protect it with one-of-a-kind coverage too! Owning a luxury or vintage car comes with its own set of special maintenance and repairs, not to mention unique insurance treatments. Since your classic car appreciates with value each year, getting it set up with classic car insurance will be critical.

If you’re searching for quality providers of various kinds of auto insurance, be sure to look up Goodison Insurance. Our expert team will help you find the right insurance for your needs, so you can rest assured that your car is safe and covered. To learn more about classic car insurance, call Goodison Insurance at 883-932-1368 or contact us here for more information.

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