by William Addison

Created on: June 06, 2009   Last Updated: June 07, 2009

Classic cars present a unique automobile ownership experience and insuring these vehicles properly takes a special kind of agent and a special kind of policy. If you are shopping for classic car insurance, there are some criteria that you should consider before you might qualify.

Many policies will contain a provision that limits the annual mileage that you drive the car. Often, there will be restrictions on using the car for commuting, business use, racing, or as a backup vehicle. You may also find that the vehicle must be stored in a fully enclosed, locked garage when not in use.

There are often restrictive requirements on the drivers as well. Moving violations and accidents may limit the availability of a classic car policy. It is often required that drivers of the insured vehicle are required to have at least 10 years of driving experience.

Insurers of classic cars will have requirements regarding the value. They may not allow any vehicles under a certain dollar amount, and they may also require a special underwriter review prior to binding coverage on vehicles valued over a certain dollar amount. Often, an appraisal of the vehicle will be required before the policy inception.

These regulations are established due to the high risks associated with transporting classic cars and the high values associated with them. Insurers also recognize that values can fluctuate dramatically based on a single fact about a vehicle. In some cases, the difference of one model year can make an important difference in the value of a classic car.

Insurers classify classic cars by type. Antique cars include any cars older than 25 years. Exotic cars include those that are not always old, but which are rare because of limited production or availability. The classification of Street Rods or Hot Rods includes those vehicles that are generally older and which have been substantially modified from stock. There is also a category for special interest vehicles such as fire engines, military vehicles, or trucks. These types of vehicles are generally older vehicles, which have been restored or very well maintained. If you own a kit car, you may also be eligible for classic car insurance depending on the age, condition, and manufacturer.

Insuring a classic car is certainly more difficult than insuring your daily commuter, but doing so can be very important. Classic car values can be quite high and if you have spent years restoring your classic car, you will want that investment of time and money properly protected.

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