You will want to do everything in your power to protect your classic car, and that includes finding the perfect insurance policy. Unlike insurance for daily drivers, classic auto insurance must cover a variety of unique parts that tend to increase in value over the years. Without the proper insurance, all of the time and energy you have invested into your vehicle could be gone in the blink of an eye.
Signs You Need Specialty Coverage
Drivers must speak with insurance specialists to determine if they need specialty coverage for their classic vehicles. There is no set age when a car or truck becomes a classic vehicle, and it is typically up to the discretion of the owner and their insurance agent. As a general rule, you should consider classic auto insurance if you believe your vehicle’s value is going to increase over the years due to its age or history.
Agreed Value Insurance
Appraising a classic vehicle is a much more complex process than estimating the value of a daily driver. Many owners spend huge sums of money restoring their classic vehicles, and you might also have to take custom work into consideration. That is why many drivers who own classic vehicles opt for agreed value coverage. You and your insurance provider will both come up with an agreed value that you will receive in the event of an accident.
Appreciation and Upgrades
Depending on what type of vehicle you own, the value could increase substantially within the next few years. This is especially common during the restoration process as new parts are added to the vehicle. While you will most likely not need to have the car appraised every year, you should consider taking a fresh look at the policy at least once every two or three years. During that time, you and your insurance provider can go over any changes or upgrades that have been made to the vehicle.
Insuring a classic vehicle might be a slightly more complicated process, but your policy will be your first line of defense against theft, accidents, and vandalism.