Though many people think that classic car insurance is just like the insurance arranged for modern cars, this is not the case. For instance, classic car insurance policies may have some restrictions on which vehicles may be covered and how they must be handled by owners under the policy. These limits should be considered carefully before choosing an insurer.
Some things that may be considered are: –
Nearly all classic car insurance providers have a strict limit on the number of miles that the owner may drive in the car each year. This figure may vary but may be up to 7,500 miles each year. This allows the owner some flexibility to drive the car to antique car exhibitions and take it for drives to show it off, but is intended to keep owners from driving the car long distances and exposing it to traffic and other road hazards.
Storage and Protection
In order to get an insurance policy on a classic car, some insurance companies may require proof that you have somewhere to store it where it will be protected from environmental damage and other dangers. A car cover does not count as protection. Most insurance providers will want to know that you have a garage or carport that your classic car is being stored in and some even require locking storage for the vehicle. Some classic car insurance companies go so far as to recommend that the owner stores their car in a special facility made to provide classic cars with security. While this costs, it may also bring the insurance premium down quite a bit.
Age and Driving History of Owner
All providers of classic car insurance have requirements surrounding the age of the car’s owner and anyone else who will be listed as drivers. Many require the driver to be at least 25 years of age. Providers have this limitation to protect themselves – they feel that the older the driver, the more responsible he or she will be with the car, and the less likely they will be to have an accident or damage the car in other ways. Just as other insurance providers, classic car insurance companies will check into owner and driver background, including traffic offences and past accidents.
Classic car insurance providers do have guidelines about the age of vehicles that they will insure. For instance, the car may need to be at least 15 years of age although this criteria does vary with some insurers.
The car’s owner and insurer often get together to arrange an agreed value as the value of a classic car that is being very well taken care of may increase over time. The insurance provider may ask for an official estimate of this figure.