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Why You Need To Review Your Insurance |
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Written by Administrator
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Making a choice of a classic car insurance company for your collector car can be a difficult process. The auto insurance industry gives you different information about policies and coverage. Specialty insurance coverage can be had for a very reduced rate over a daily driver insurance policy, but you need to know its limitations. It's important to do your homework to make sure you're getting the best deal available.
There are a lot of critical factors you need to consider before picking an insurance company:
1. How many miles do I plan on driving each year?
2. What's my acceptable risk in the case of a claim?
3. Do I want to drive my classic car every day?
4. How difficult is it to find parts in the case of a repair?
5. Do I need a local agent?
Mileage is an critical point for collector car insurance companies. They offer coverage for your classic car at a lower rate because they assume that your usage is restricted. The average specialty insurance company allows for a maximum of 2,500 miles per year driving for their insurance plans. The restricted driving means a limited amount of exposure for the insurance company. Some companies, such as Hagerty, offer unlimited driving privileges but impose other limitations, such as no driving to work or daily driving uses.
Old Cars Are Risky To Cover
Standard insurance coverage typically pays for repairs based on the industry standard prices established for your vehicle. This pricing assumes the parts are readily available and can be purchased by standard processes. They are unable to guarantee that your 1969 Ford Mustang will be repairable with NOS parts, as these are only available in limited quantities. To ensure your collector car is covered to the full extent of any damage is to purchase stated value insurance. Stated value insurance allows you to set a price to the value of your car, and in the case of a claim you can be sure that your vehicle is covered for damages up to that amount. This is perfect for collector vehicles or cars that are of special value.
Please Don't Drive Your Rare Camaro To Work
Insurance companies that cover specialty vehicles typically ensure that you have another vehicle to drive on a daily basis. They do this because they don't want you driving your collector car to work every day. This is because they mitigate their risk by limiting your mileage. Many companies give you a clear limit to how many miles you can drive. Others simply have rough guidelines.
Collector Cars Are Expensive To Insure
Some vehicles are collectible because of their rarity. Standard insurance policies will not cover sourcing original New Old Stock (NOS) parts for a specialty car. They'll only use generic replacement parts. This may effect the value of the vehicle when it comes to resale value.
Please Make sure you understand the importance of finding the right insurance company for your vehicle. Sites like Classic Car Insurance Tips are great places to start your research. Find out what's the best choice for your needs before you take to the streets this car show season.
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