Collecting classic cars is a passion few people understand, but practically everyone appreciates. The beauty of a painstakingly restored classic car is hard to match. Given the value of each component used to maintain and perfect the car, it is not surprising classic car insurance is one of the more expensive coverages on the market today. Not only are classic cars expensive to preserve and insure, they are prone to sudden breakdowns and costly repairs.
Classic Cars: In a Class All Their Own
Most people assume a standard car insurance policy will do the trick when it comes to protecting their classic car. Classic cars, though they are beautiful, are far less reliable than contemporary cars. This makes them harder, and more expensive, to insure. Actual cash value policies -- which are the standard car insurance policies issued by most carriers -- take depreciation into account when factoring in the value of your vehicle. Therefore, a contemporary car insured for $15,000 today may only be worth $5,000 in a few years. Unlike contemporary cars, classic cars can appreciate in value.
A Great Classic Car Needs Great Insurance
An option for classic car owners is the stated value policy. Unlike an actual cash value policy, a state value policy gives the purchaser the benefit of the doubt in terms of declared value. The purchaser claims the car is worth a certain amount, which the insurer agrees is the case, and the policy is put into action. These policies, not surprisingly, are rare. This brings us to the most common type of classic car insurance: the agreed value policy. Agreed value policies insure the classic car for its current market value, regardless of depreciation!
Handle Your Classic Car with Care
An agreed value insurance policy allows car collectors to protect their beloved vehicles, but they do present some problems. The chief problem is restricting the age of the driver. Generally, this means drivers under 25 are prohibited from operating the car. Additionally, there are monthly mileage restrictions, storage requirements, and in some cases, you have to prove you have a more reliable, contemporary car for everyday use.
If you are in the market for great classic car insurance, we advise you compare coverage rates from several competing carriers. At Car Insurance Web, we can help you find the quotes you need to bargain for better rates on classic car insurance. Do not settle for sub-par coverage, especially when it comes to your pride and joy. Be patient, do you research, and get your free quotes today.