What do I need to look for with  antique car insurance?

Ted

Woodlands, TX.

Ted,

Antique or classic car owners ought to pay special attention to the following issues when purchasing insurance.

Vehicle usage: Most collectible cars are rarely on the road. The annual mileage for these vehicles usually ranges from 1,000 to 5,000 miles, and the policy should reflect that limited use.

Vehicle storage: Antique and classic car insurers traditionally insist that these types of cars be stored in a fully enclosed, locked garage when not in use.

Vehicle valuation: “Agreed-value” policies are preferable to “stated-value” policies. Agreed-value policies guarantee that, in the event of a total loss, the insurer will pay the owner of the car the full amount listed on the policy, minus any deductible. Stated-value policies, while rarely sold, are often open to interpretation about the value of the vehicle in the event of a claim.

Vehicle condition: Insurers prefer to insure cars that are in excellent condition, and antique and classic car insurers may decline to cover cars that appear to be weathered or that have sustained prior damage. Insurance coverage can usually be obtained, however, while an antique or classic car is undergoing an active restoration.

Some insurers of collectible vehicles may want to know whether spare parts are available in the event that the car is damaged, and whether there are auto body shops equipped to fix older vehicles in the vicinity of the owner’s residence.

However, most insurers specializing in antique and classic cars have an extensive network of resources that can help owners obtain rare and hard-to-find parts. Moreover, some insurers will occasionally allow a policyholder to ship an antique or classic vehicle across state lines for repair at a shop with expertise in a particular car.

Great Question.