Classic Car Insurance: How Does it Work?

If you own a classic car in Dadeville, AL, you should consider getting a classic car insurance policy. These antique cars are a great investment, especially when you want to add something unique and classy to your car collection. Insuring it ensures you are protecting yourself and your car in case anything happens. To help you understand classic car insurance, Highpoint Insurance Group takes you through what you need to know.

How Does it Work?

Classic car insurance works the same way your standard auto policy works. However, classic car insurance comes with the benefit that you get coverage for your car’s agreed value as long as you follow the terms and conditions stated. Just like the regular policy, this type of insurance also comes with different coverage, like collision coverage and comprehensive coverage. You can therefore choose the one that fits your needs and budget.

What Is Considered a Classic Car?

For your car to be considered a classic, it should be at least 20 to 25 years old and above. The vehicle also needs to be maintained to its original specifications or designs. This means that any restoration done to the car should remain consistent with how the vehicle was originally built.

Qualifications For Classic Car Insurance

There are rules governing a classic car insurance policy other than the age. They include:

  • The car should not be used as the main car to run errands or for daily use.
  • The car should be stored in safe storage like a private garage, storage unit, or pole barn.
  • The car needs to be in good condition.
  • It should not be used for racing.
  • The driver should be 25 years and above and with a good driving record.

Insuring your classic car ensures you do not suffer a financial loss when you get into an accident and damage the car, get injured, or injure other people. And since this type of auto insurance is somehow complex, you need to work with a great team like the one at Highpoint Insurance Group of Dadeville, AL. Give us a call today, and we will assist you in choosing the right coverage.

What type of vehicle is considered a classic car and what are the benefits of classic car insurance?

Most drivers carry car insurance designed for non-classic cars. In other words, these cars are usually driven daily and tend to be less than fifteen or twenty years old. As a result, many people may not be aware of what classic car insurance is and which cars would be classified as classic. Our team at Highpoint Insurance Group in Dadeville, AL understands that many people don’t fully understand classic car insurance, and more detail may be needed to create understanding. Alabama residents who own cars that might be considered classic can benefit from exploring this type of insurance and all that it provides. 

What is a Classic Car?

A classic car is a car that is at least nineteen years old, in mint condition, and of greater value than other cars of the same age make and model. Typically, classic cars are between twenty and forty years old. However, the age of a classic car is often debated, with some people considering a classic car to be ten years old or older. Classic cars are not usually used on a daily basis and typically driven 2,500 miles a year or less. 

What is Classic Car Insurance and What Are the Benefits?

Classic car insurance is designed to cover classic cars that fit the above-listed description. However, classic car insurance differs from regular insurance. Regular car insurance is designed for cars that are driven daily. If you have an accident as a daily driver your car is assessed at its current value. Classic cars are insured for their agreed-upon value at the time the insurance was started. If you have an accident, you will receive the total agreed value of the car. Classic cars can only be driven 2,500 miles or less per year. As a result, insurance for classic cars tends to cost less. This is because the car isn’t driven daily, and the car’s condition is usually well beyond average. Insurers also assume that classic car owners are going to be more careful than average and that the car will be well maintained.

Other Considerations…

Drivers should also note that classic insurance companies often have rigid guidelines and standards. For example, some companies may require classic car owners to submit annual odometer readings if there are strict annual mileage requirements. In general, the perception is that cars driven infrequently pose less of a risk for accidents and damage. We’re here to answer any and all questions you may have about classic car insurance. Give us a call.