We all love looking at classic cars. Whether it is a six-figure Ferrari motoring down the street, a vintage American muscle car, or a pre-war sedan lovingly restored to its former glory, there’s nothing like a one-of-a-kind vehicle. You know that. You have spent countless hours working on your four-wheel labor of love after work and every weekend. It looks great and you proudly show it off at auto shows and in short hops around the neighborhood. The one thing you may not have considered is whether your standard auto insurance covers the restoration and upgrades you have made to your car.
While there is no standard rule of thumb when it comes to a definition of classic cars, there are a few points to consider. If a car’s value exceeds its original selling price, then it might be considered collectible. A “classic” or “antique” vehicle is usually at least 25 to 30 years old. Many modified vehicles, particularly high performance “hot rods” should carry extra insurance, as should exotic or super-luxury models. Vintage military vehicles, classic motorcycles and antique tractors are also candidates for classic car coverage.
In order to qualify for a classic car policy, there are a few common criteria noted by the Insurance Information Institute: Limited Use—Your classic car cannot be used for everyday commuting or errands; Car Shows and Meetings—The ‘limited use’ provision of a classic car policy allows for travel to car shows and auto club meet-ups; however this coverage may be restricted by some insurers. Secure Storage—When not in use, your special vehicle must be stored in a locked, enclosed, private structure, such as a residential garage or storage unit; and Clean Driving Record—You may be disqualified from classic auto insurance if you have serious offenses on your driving record, such as reckless driving, repeat speeding violations or driving while intoxicated.
Before you obtain a classic car policy, you will need to reach an agreement on how much your vehicle is worth. This will be specified in your policy until any changes are made. You’ll want to be sure your policy allows you to use a specialized mechanic or body shop, as well as towing and the ability to obtain specific spare parts.
Find out what you need to do to fully cover your classic car from any eventuality. Ask your insurance professional what it will take to protect your hours of work and thousands of dollars invested in your dream car. Don’t be sorry later for not doing a little research now.