Insuring an Old Car or Vehicle

Most old car owners are not alive to the fact that, unlike new cars that depreciate on a daily basis, an old car can appreciate in value as it gains vintage status. An old car can be considered a classic car however the definition of a classic car can vary depending on the manufacturer. For matters of insurance, any vehicle with a lifetime surpassing 15 years is considered classic below that it is considered non-classic. In the world today the insurance trends on old cars indicate that they are charged fewer premiums. This is attributed to the fact that owners of old cars are considered low risk. Insurance companies are also of the school of thought that old car owners will maintain them, therefore, reducing their risk.

What does it take to insure an old car? It is worth noting that regular insurance may not be appropriate to insure an old car. The first thing that one ought to do as an old car owner is to sit down with the insurer and determine the value of the car. The value agreed upon will be specified in the car’s policy and the car will be covered up to the amount dictated by the policy. In addition, while insuring an old car look for a policy that covers specialized service and restoration, for example if you own a classic Ferrari, Mercedes-Benz  or a Ford, your insurer should cover costs to repair the vehicle in their manufacturers garages although this can be a bit more costly. Make sure that the policy also covers key areas such as spare parts, engine components, and transmissions. This may look a little bit straightforward to some, but it can be the cause of rejected claims, ensure while insuring your old car the policy covers normal insurance policy provisions such as clauses on body injury liability and damage to property.

There is a section of old car insurance that calls special insurance. If your car is more than 25 years old, and its present value exceeds the original selling price, then it can be considered for specialized insurance. Examples of vehicles that need specialized insurance include classic truck, old military cars, old motorcycles and old unique tractors.

Insuring an old car is bound by some qualifications. It is important to note that just being the owner of an old car does not qualify you to old car insurance. These factors are different in various companies but as a general rule review the following criteria before insuring your old car.

• A good driving record- if you are in the books for careless driving, traffic offenses such as over speeding, drunk driving or causing accidents the probability that you will be disqualified for old car insurance is high. This is because you increase the risk to the insurance company.
• Insuring an old car demands that you put it in a secure location in your residential area. You realize that old cars are gems and thieves might stop at nothing to steal or even dislodge some of its parts. If the insurer can prove that you do not have a safe storage location for your car chances are that you may be disqualified from the policy.
• Some insurance providing companies can limit the kind of car shows you take your car to for exhibition. It is important to inquire if there are any such restrictions on the policy if you regularly plan to showcase your old car.
• Limited driving- to insure an old car might mean reducing its usage. Insurance companies restrict the usage of classic cars for daily errands and commuting as these increases the risks on their end. In this sense they can put some clauses in the policy, such as mileage limitations and some go to the extent of requesting proof that the car is being well used and serviced properly. An emerging trend in this limitation is insurance providers requesting clients to own a second car for doing their everyday chores so as to qualify for the cover.

The most crucial thing while want to insure an old car is to ensure you have ironed out all the policy details with the insurance provider. Ensure you understand the limitations of the policy so as to avoid instances of rejected claims.

To get an auto insurance quote before you make your purchase. Contact us or give us a call at (305) 220-0900.