If you own a vehicle that meets classic car criteria, then you don't have to use a regular auto insurance policy. You can, however, buy classic car coverage.
What are the benefits of using this specialty insurance?
Get a Better Insured Value
Cars depreciate in value as they get older. If you buy a new car now, then its value decreases every year. Regular auto insurance policies take this depreciation into account when they value a vehicle after a claim.
However, classic cars don't typically depreciate in the same way. They are more likely to hold or even increase their value. So, if you have regular coverage and need to make a claim, then your insurer might not pay the full amount you need to repair or replace the vehicle.
Classic car insurance factors in the real value of your car. These policies generally work on an agreed value. You tell your insurer how much the car is worth, and you both agree on a more realistic insured sum.
Get Experienced Repair Options
If you have an accident and damage your car, then your insurer might give you a list of approved repair shops. Your policy will pay to repair the damage; however, you might not have much choice over who fixes your car.
A regular repair shop isn't likely to have the skills, experience, and parts to repair classic cars. You might not be happy with the results you get.
Classic car coverage gives you more choices. Insurance companies know that your car needs specialist repairs. They are more likely to allow you to suggest suitable shops or mechanics. They might make the final choice, but you'll get the expert repairs you need.
Get Lower Insurance Costs
Your classic car might be worth a lot of money; however, your insurance costs could be surprisingly low. This coverage usually costs less than you would pay to insure a regular vehicle.
Classic car insurance companies usually set lower deductibles than the norm. So, you reduce your out-of-pocket costs if you make a claim. Plus, your premium charges will be lower.
As a classic car owner, you are a low-risk prospect in insurance terms. Carriers know that you are likely to take good care of your vehicle. You'll store it securely. You also probably don't drive the car too often, so it won't be on the road all the time. You're less likely to make a claim, so they can reduce their rates.
To find out more about classic car coverage and its benefits, talk to car insurance agents with connections to insurers in this market.
After I moved out of my parent's home, I started learning more and more about insurance policies. I was involved in a bad car accident, and I ended up working with my car insurance company as well as my medical and dental insurance companies. I paid my premiums and enjoyed coverage, but I didn't really understand how the entire insurance claim process worked. I wanted to make this blog to help other people like me to learn more about insurance coverage. Check out this blog for more details on insurance coverage, how to file a claim, and what you should expect throughout the shopping process.