Classic Car Insurance Basics to Choosing the Right Policy
As a classic car owner, nothing is more important than protecting your car. All the time you’ve spent investing and restoring the vehicle is worth making sure that nothing happens to it. While it would be nice to protect it from all the mishaps in the world, there is always a chance that something could go wrong. That is why it is required that you have Classic Car Insurance to cover the damages.
Not the Same as Traditional Car Insurance
You must understand that insurance for your classic car will vary from insurance for your everyday vehicle. Classic cars must first be valued and then insured, which in most cases is carried out by a professional. Once you have an overall value, finding an insurance company that offers insurance for your car type is advised.
Know the Limitations
Many policies have limitations and restrictions on your classic car. One requirement is that you be able to show proof that you have another means of transportation for the day to day commute. Classic cars are not as safe as modern vehicles, which makes them unsuitable for driving on a daily basis. Not to mention, many insurance companies will limit you to no more than 5000 miles per year. In most cases, this should not be much of a problem.
Know Your Policy Type
It is very important that you understand the type of policy you’re purchasing. There are several types of insurance that include actual cash value, stated value, and agreed value. Actual cash value is similar to regular car insurance which will compensate you for the cost of the car if necessary. Stated value will provide funds up to the stated value for the car (value can fluctuate). Agreed value policies pay a predetermined amount in the event of an accident, in most cases, without having a deductible.
Knowing the basics of Classic Car Insurance can help you in determining which policy is best for your vehicle. Take your time in choosing based on coverage, price, and convenience. Olsommer Clarke Insurance Group Inc provides comprehensive policies that will protect the car that you’ve worked so hard to keep.