Those who have just recently purchased their classic cars would probably think that they have made one of the worst mistakes in their lives. Classic cars have so many years for things to break and corrode that you might think you are just buying somebody else’s worries. There are indeed many joys but unless you have the right classic car insurance product to cover your “pride & joy”, you are leaving things to chance. There-in lays the problem. By not you would have realized that most normal car insurance companies will not insure classic cars. Below we will look into why this is the case and also provide important advice on how to solve this problem.
The first thing we would like to touch on is the valuation models differences. Normal car insurance companies will value a car based on its prevailing market value and also its economic value to the user. This valuating model cannot be used with classic cars. Classic cars are valued very much based on emotion and how much time the owner has spent caring for the car. This is one of the reasons that normal car insurance companies don’t deal with classic car owners. Maintaining a classic car is not a logical exercise and car insurance companies recognize that. To value an activity that is not logical is very dangerous in the eyes of a normal car insurance company.
Prospective classic car insurance users should also understand the concept of agreed value and market value. Most classic car insurance products are based on agreed value while most normal car insurance products are based on market value. This is the defining factor that addresses the differences in normal valuation models as described earlier. With agreed value, you come up with the number that you think is right to value your ride. With market value, the insurance company will come up with the figure and will check the market again if you make a claim. Straight away you should recognize that market value policies are rather dangerous for classic car owners. It is up to the insurance company to determine how much your car is worth. It is almost the job description of the insurance adjuster to value your claim down to an unacceptable value.
Newbies should also understand that car insurance for classic cars is quite different to normal cars. Classic cars are generally memorabilia items and are kept for emotive reasons. The insurance model for classic cars is very similar to insurance models for paintings, one-off pieces of art and anything that is collectable. Applying normal car insurance to classic cars is a mismatch and should not be done. A classic car insurance policy is very much a custom policy that is specifically made to match the needs of the car and the user. In most instances, there are no two classic car insurance policies that are alike as most users have different ideas on how to use their classic cars. The sheer customizability of classic car insurance is another reason that normal car insurance companies don’t take up classic cars. Most of the time it is just too much hassle to customize all policies for such a small market.
With classic car insurance it is very unlikely that you will ever come across a “off-the-shelf” car insurance package like you would normally find with standard comprehensive car insurance policies. With classic cars there can’t be a “one size fits all” policy that is suitable for every classic car owner. This is plainly because the needs of classic car owners can vary greatly. As an example, there are owners that pride themselves in using their classic cars everyday as a daily driver while there are those who would rather make their classic car into the “perfect” example and cart it around in a trailer from show to show. Some owners are backyard mechanics and can’t help but to pull apart and reassemble their cars. As you can imagine, the insurance requirements for each of these owners is very different.
One the same note of lowering your classic car insurance costs, most new owners normally miss one of the most vast collection of good advice and tips and tricks about both your car and your insurance. Most don’t think of ever contacting other classic car owners that may have been doing this for many years. These people would probably have had all the classic car insurance problems before and have very valuable tips and tricks you can use to get your car insurance. You can find these owners through clubs or even on vintage rallies and meets. They would generally be more than happy to relate their ownership experience with you and share any useful bits of information.
One of the proven methods of keeping your car insurance premiums down is to put a cap on the number of miles that you travel. Since most classic car owners already take care of the number of miles they do the next logical step is to have your car insurance reflect the “limited use” condition that you might have already imposed on yourself. By restricting the number of miles per year you can expect a very healthy discount on your yearly premiums.
As classic cars are insured in a similar manner to antiques, rare paintings and memorabilia items. With these items the storage security is very important and is a large factor in determining the cost of the premiums. Most insurance companies that will insure classic cars have their own list of vetted and approved security firms. These firms are recommended by the insurance company to supply security for your classic car and the place where you store your classic car. If you have a satisfactory installation then you can inform your insurer of it and receive a cut in your classic car insurance rates.
These are just some of the tips that we think will be useful for those who are approaching classic car insurance for the first time. Although it is quite different to normal car insurance products, once you get the hang of it, it will be very easy to comprehend. Once again we can’t state how important it is to contact other people who share the same classic car as you and ask for their advice. The path to owning and maintaining a classic car isn’t a simple one however with the right tools and knowledge it can be a very joyous hobby. Make sure that you enjoy your classic car with the right car insurance plan.
Find the important tricks of the trade for classic car insurance products. We look at ways how you can keep your premiums down while still keeping your coverage for your pride and joy high.
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