Some people fall in love with old coins, stamps and envelopes. However, what if you collect old and classic cars, or at the very least, have one in your garage? Would you go for an ordinary coverage or choose the more specific classic car insurance coverage?
Classic or antique cars are valuable assets not only due to their sentimental values, but also to the rarity of the materials used, design, and the manufacturer who stopped producing the said models, decades ago.
When a Car Becomes Antique
There are no hard and fast rules that you can use to consider a car to be an antique, but for the sake of auto insurance, we’re going to make one. For now, let’s consider the cars built prior to 1940 to be an antique. Accordingly, antique collectors use varying factors in determining the value of automobiles that include the number of similar cars existing today, historical interest (if any) and how much it would cost if the car is to be restored.
It’s hard to visualize all these things, so let’s take an example. Maybe you own a 1925 Ford Model T and a friend of yours own the 1928 Hupmobile. Without a doubt, your car is three years older than his car. Unfortunately, spare parts for your car’s model are still widely available these days, in contrast to the Hupmobile where parts are already scarce, and often, need to be custom made. For this reason, some ‘antique’ cars are not really antique.
Classic Cars
Cars manufactured after 1941 to present are considered classic cars. More specifically, cars manufactured between 1940s and 1960s. “Muscle cars” produced in the late 60s and early 70s are regarded as classic cars too. However, the age of the car doesn’t automatically make it a classic car it also depends on the uniqueness or the numbers of cars available. One exception is the 1984 DeLorean, manufactured in the Northern Ireland, and the only car ever produced by the company. Furthermore, it is believed that there are only 6,500 left of the total 9,000 cars produced, and in 1982 the company stopped manufacturing them.
Understanding the Type of Auto Insurance Coverage to Use
While it’s still possible that your current insurer could cover your special needs, but I would suggest you select a specific insurer that specializes in classic or antique car coverage. The reason is that these vehicles require special considerations, and few more requirements are needed to cover them fully.
In case you are taking the car to a parade, special shows or to be transported in a covered trailer to a different location, the insurer will suggest full coverage insurance. Covered garage and tarp may be required as well. Furthermore, “daily drivers” must also have excellent driving records, and skills before they can be allowed to take the car out.
In case of accidents such as household fire and flood, the car’s coverage will not likely be used to indemnify the loss, but instead your homeowner’s policy. If you want to be certain, it’s best to discuss this matter with your insurance agent who is more knowledgeable about your coverage requirements.
