Insurance: Vintage Vehicles Deserve Classic Insurance
By: Virginia Kinneman
Kinneman Insurance
Most types of car insurance cover vehicles that deteriorate in value over time. Classic car insurance does just the opposite. It is designed to keep pace with the car’s increasing value and to protect what most owner/collector’s consider an investment. The bonus to classic car insurance is that it usually costs less, even though it offers higher coverage. Why? Owners of classic cars tend to pamper and care for these vehicles, house them properly, and keep the mileage down. Premiums average 20-40 percent less than a regular policy.
However much you may love your prized baby, not all old cars qualify as CLASSIC for insurance purposes. The first test is whether the car’s value exceeds its original selling price. Some that may qualify would include:
What is required for a classic car policy?
Many insurers won’t cover a vehicle in poor condition or has had significant damage and since the car’s age is not enough for specialized classic car insurance, look at the following qualifications used by many insurance companies.
What’s included in a classic car policy?
Car Value: Unlike current vehicles there is no firm book value for specific classic makes and models. First, discuss with your insurance agent and reach an agreement on the value. Your policy will reflect that value providing coverage up to that amount without depreciation. Often collectible car valuation guides such as the Old Cars Report Price Guide is utilized. Other times an appraisal by a professional valuator or research provided by an underwriter will guide the agreed value.
Special towing and spare parts: Transporting a classic car often demands special care such as a flatbed tow truck rather than a winch. Often this service is more expensive. Cost of replacing (even locating) spare parts must be by current replacement value. Some components will be difficult to locate requiring you to do your best to negotiate but without much competition, the parts usually remain high.
Expert repair or restoration: Labor rates can be two to three times more expensive for qualified mechanics who work on classic cars. Your policy needs to reflect this increase and not the average cost at a typical repair at a traditional auto body shop.
If you have a classic car, contact your insurance agent to discuss the correct policy. Protect your cherished investment and ensure many years of fun motoring.
703-823-8800
www.kinnemaninsurance.com
Virginia.Kinneman@kinnemaninsurance.com
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