Just as classic cars require a little more attention than their modern-day counterparts, purchasing auto insurance for a classic car is slightly more involved than insuring a new vehicle. If you have a classic car you need to insure, here are some questions you can ask an insurance agent to help you find the right auto insurance policy for your classic automobile.
Does the Auto Insurance Policy Cover Appreciation?
Most auto insurance policies don’t cover appreciation. For the majority of drivers, this isn’t an issue because newer cars generally depreciate rather than appreciate in value. Classic cars, however, can appreciate.
If you expect your classic car to go up in value in the coming years, make sure the auto insurance policy you purchase for the car covers appreciation. There are a few policies that will cover appreciation, and they’ll make sure your car is protected for its full value — even if the value is higher than it was when you got the insurance policy.
Are Drivers Required to Have a Minimum Amount of Driving Experience?
Many auto insurance policies that are designed for classic cars have minimum experience requirements for drivers. Some policies require the primary driver to have a certain number of years behind the wheel, and a few policies place minimum experience restrictions on anyone who’ll be driving the car.
Should a policy’s minimum experience requirements be violated, the policy’s protections may be voided. Therefore, you’ll want to know — and follow — any such restrictions.
Even if you personally have been driving cars for decades, you’ll still want to ask about a policy’s minimum experience restrictions. That way, you’ll know whether you can let children or grandchildren drive your classic car without voiding its insurance.
How Will Replacement Parts Be Sourced?
The types of parts used to repair a classic car significantly impacts the car’s appeal and value. A car that’s repaired with original parts will be worth much more than one that’s been fixed up with more modern parts. Sourcing original or even replica parts can be challenging, though.
For this reason, it’s important to know how an auto policy will cover the sourcing of parts for a classic car. If a car is damaged in a covered incident, will the policy cover the full cost of original parts? Also, will the policy pay to have custom parts made if original parts can be found?
In addition to asking about what parts are covered, find out if an insurer will help you find parts. Some insurers will hire a parts location service for you, which can save you hours scouring sources for parts.
Does the Policy Provide Coverage While the Car Is Being Restored?
Classic cars often spend a lot of time in garages being restored, and they need to be insured while they’re being worked on.
Some auto insurance policies will provide full coverage for your classic car while it’s being worked on, while others will offer only limited (or possibly no) coverage. Before getting a policy, find out how well it’ll protect your car while the car is undergoing restoration. Make sure the car will be covered for its full value and that the location where the car will be stored is a covered location.
Are There Mileage Restrictions Included in the Policy?
In order to keep premiums as low as possible, some insurance companies include mileage restrictions in the auto insurance policies that they offer for classic cars.
Check whether any policy you’re considering has a mileage restriction. If you drive more than is allowed each year, ask whether the policy’s restriction can be increased. If you drive less, then the restriction won’t affect your coverage.
For help finding an auto insurance policy for a classic car, contact us at Metropolitan Insurance Service Consultants.