Written by Ford Six member: AzCoupe
Copied in part from an article in AAA Highroads Magazine - February 2004
If your car is a collector car, show car, or an occasional weekend cruiser, you may want to give some addition thought to your insurance needs. You might think insuring it with a regular insurance company is the way to go, but doing so is usually a mistake.
Collector car insurance offers expander coverage for the special nature of your car, usually at a fraction of the cost of standard insurance. Here are some things you should know before settling on an insurance policy for your car.
Insuring a collector, restored, or show car with a standard policy with top notch coverage can break the bank. Depending on the value of the vehicle, collector car policies are a small expense compared to regular auto insurance. The reason being, collectable, restored, and show cars aren't used as daily drivers, therefore the risk of an accident is smaller. Also, these vehicles are more cherished by their owners and are driven with greater care and consideration, resulting in fewer claims for the insurance company. Special restrictions usually apply.
Insurance providers usually group the cars into four categories. Knowing which one your car falls into will help you get the most accurate insurance quote.
Antique, Classic & Collectible - A private passenger motor vehicle, more than 20 years old, which has not been altered from its original factory specification. It is usually a unique design or limited production.
Custom or Modified - A motor vehicle manufactured after 1948 that is at least 20 years old which has been altered from its original design, including modifications to the engine, chassis, body style, paint, or interior.
Street Rod - A motor vehicle manufactured prior to 1949 which has been modified from its original design. Including modifications to the engine, chassis, body style, paint, or interior.
Exotic - A private passenger motor vehicle that is less than 20 years old and hasn't been altered from its original factory specifications. Generally a unique design or limited production vehicle. Value is derived from a combination of its performance capabilities and the artistic nature of its body work and interior.
Kit Cars or Replica's - A newly manufactured or constructed vehicle that mimics a prior years vehicle design or model year. These cars may be pre-assembled or constructed by the owner/purchaser.
What you can expect to get
With specialty collector car insurance, you get more protection and benefits than with standard insurance. Policies feature extra coverage's like Agreed Value Coverage, which protects your vehicle from depreciation by assigning a value to it that is agreed upon by the owner and the insurance company.
Generally, most companies have restrictions, but these very greatly from one to another. Below is a list of some of the restrictions that may be included in the policy.
Parking - Most companies require the vehicle to be parked in a locked garage. You may also be limited to where the vehicle is parked during outings, and the vehicle may not be left unattended in any public parking lot.
Mileage - Most companies restrict the vehicle to a specified yearly mileage, although some offer unlimited mileage. Restrictions may also apply to the vehicle usage and the vehicle may not be used as a daily driver. In these cases, the policy owner must show that all drivers in the household have a regular means of transportation.
Engine - Many companies will not insure vehicles intended for racing. This may or may not include modifications made to the engine. But there are companies that specialize in this type of insurance.
Paint - Companies may limit the dollar value of the vehicles paint.
Transit Coverage - Covers the car during transit on personally own trailer or commercial haulers.
Spare Parts - Covers the cost of spare parts that need to be change on a occasional basis.
Owning a collector or Classic car is exciting. Insurance shouldn't be a hurdle that dampens your excitement, in fact it should be one of the easiest parts of the process. Check around and get quotes form several companies, being sure to understand all the restrictions and the specifics of the policy coverage.