Antique and Classic Car Insurance - Tips for an Informed Choice

You've just acquired your first classic car. You know you need insurance for it. But you might want to think twice before you add that car to your regular insurance policy. Antique and classic cars have special insurance needs that you - and your regular carrier - may not be aware of.

In fact, it's probably a good idea to look into companies that specialize in insuring these types of cars. They'll be more knowledgeable about how to value the car and about the kind of coverage it needs. Here are a few things to consider when you're doing your research.

It can be hard to place a value on a classic or antique car. Most of these vehicles have long since expired from the "blue book" value charts, or they may be modified to the point where a blue book value wouldn't apply even if there were one. In addition, there's usually more than one way to determine how much these cars are worth. For example, an insurance policy could be based on "actual value," "stated value," or "agreed value," with each of these terms having a different definition. Choosing the right way to value your car could be crucial to getting the right payout if you have to make a claim.

The policy may restrict how you use your car. Do you plan to drive it only to and from car shows, or will it be used for other trips as well - maybe even everyday use? And how many miles do you plan to put on it in a year? Some carriers restrict the annual mileage. If you go over that amount, your coverage may be in doubt.

Does the policy require you to have special storage - for example, in a locked area - when your car is not being shown or used?

What options do you have for repairs in the case of damage? Will you have to use a shop chosen by the insurance carrier? Even if you're allowed to get your own estimates, will the carrier require you to use the lowest one?

Will the company insure a car that isn't drivable? For example, if your car is currently in pieces because you're modifying it, and someone vandalizes the garage it's being stored in, will the company pay the claim?

You can probably tell by now that most of these questions aren't addressed by regular insurance carriers - because they usually don't need to be. But in the case of a classic or antique car they can be very important.

Before you choose your carrier do your homework. Get as much information as you can about insurance companies and the different types of coverage they offer for these kinds of cars. Then when you do make your decision you'll know your car is protected - even if you never have to make a claim.