There’s a massive difference between regular and vintage cars. You’d naturally park 1950s Ford Thunderbird safely in your garage as it’s a collectible and holds value in the market. However, the cars you drive on a day-to-day basis see more action and are used frequently. You’d be able to find spare or repair parts of a standard car easily. However, it’d be difficult for you to obtain spare parts of a classic ride. That’s what makes it valuable in the market.
It’s established that an old, new or vintage car cannot have similar values. They fall into 3 different categories. Hence, insurance companies offer different packages for each category. There’s an insurance called ‘classic insurance’ that is specifically designed for classic, valuable or vintage cars.
Why should one opt for classic insurance?
The concept is fairly simple. We usually gravitate towards cars that require minimum fuel and are easy to deal with on a day-to-day basis. Cars that we drive regularly require maintenance. Imagine taking your car to Walmart and encountering an accident on your way back home. Mishaps happen; hence, insurance companies that cover regular cars generally charge a massive amount from the customers.
However, cars such as Ford Model T (1908), Rolls-Royce Phantom (1925), Alfa Romeo 8C (1938), Mercedes Benz 300 SL (1957), and Cadillac Eldorado (1959) fall into the ‘premium’ category. You wouldn’t imagine driving the aforementioned cars carelessly on a day-to-day basis. The policies for such cars are different. The companies or individuals who offer classic insurance would gladly reimburse you in case of loss or severe damage. They’d also replace parts that are difficult to locate. They have specialists that are specifically hired to take care of the ‘premium’ rides. Furthermore, the rest of the policies are almost similar to regular ones.
Certain key points to keep in mind:
Since vintage or valuable cars are driven infrequently, the perks allotted to the customers are less than the standard ones.
Regular auto policies consider depreciation when determining the replacement or total loss of a car. However, classic insurance policies are specifically intended for vehicles that may appreciate over time.
Have a look at the restrictions that insurers have penned down for you before opting for a policy; the companies often place limits on the usage. Some even ask you to take permission before driving an exotic car to exhibitions or events.
What precisely is a classic car?
Classic cars can be described as the ones that are old and adored; such cars hold high value in the market. The vehicles that are a few decades old are oftentimes auctioned at sky-high prices. Insurers, however, have their methods to determine the value of a particular car.
Companies that offer insurance for the collectibles often see how old the vehicle is. The vehicle needs to be at least 25 years old to qualify as a classic. However, certain cars that are manufactured in small numbers also fall in the same category.
Following are some example of classic cars:
Vintage cars that are at least 25 years old
Muscle cars and traditional hot rods
Exotic, premium vehicles
Brand new luxury and high-performance cars
Conditions to obtain insurance:
Conditions may vary from company to company, but classic insurance policies are not for the ones who use their cars regularly. As stated above, certain insurers demand that vintage or valuable cars remain unused and at home. They may state a limit to how many miles you can put on the odometer. In order to transport or drive your vintage car to the exhibitions of any sort, you’d have to acquire permission from the policymakers. They’d inform you whether your trip would come under the policy or not. Hence, it’s crucial to read the terms before signing any agreement.
Furthermore, most of the companies refuse to indemnify an expensive or high-value car that could subject to weather such as snowstorms, heavy rainfall or vandalism. Majority of the car policies have specific weather conditions mentioned in the paper. They’d probably forbid driving under deteriorating circumstances. They’d ask you to keep your car in an enclosed or secured area like a home garage or private storehouse.
When seeking a moderately priced policy, it’s essential to have a good driving record as it minimises the chances of any potential mishaps that may occur in the future. Also, it satisfies the insurers that they wouldn’t have to encounter any difficult situations.
Insurance companies, in general, may get nervous about providing coverage to a collectible car if the insured individual has had multiple speeding tickets, or if the record shows a pattern of heedless and breakneck driving.
Following are certain factors you need to consider while opting for a policy for your classic or valuable car:
Make sure the company you’re opting for agrees with you so you do not have to suffer while making a claim. Moreover, ask them to increase your coverage limits if your vehicle continues to appreciate over time. You and your desired insurance company should be able to come to mutual terms to make this a successful agreement. It is always advised to talk so both parties can mutually agree with one another.
Classics are generally kept as a showpiece. Hence, you cannot drive it like a regular car. Companies that offer classic insurances make sure that you do not drive your collectible like a standard car. That’s why the classic insurances are generally less expensive than the regular ones. They oftentimes ask you to obtain permission before taking your car outside; it’s just a way to ensure the safety of your vehicle.
When you’re dealing with a classic vintage or exotic car, you are required to ascertain that the repair shop you’re opting for has sufficient information about valuable cars. An ordinary shop won’t be able to repair your car appropriately. Hence, research is mandatory so you could inform your insurers.
As stated multiple times before, a traditional insurance policy wouldn’t work if you own a valuable, vintage or premium car. The classic insurances are specifically designed for cars that are kept indoors and hold high value in the market. They are more accommodating as compared to the traditional ones as they allow you to take your ride to a repair shop of your choice.