Owning a classic car might mean finally making one of your dreams come true. However, there are risks to owning a classic car that aren’t present with the average vehicle. A classic car insurance policy will provide the protection this unique vehicle needs, which is different from what a standard auto plan can offer. Consider the unique terms and conditions that might be present in your classic auto policy.
What Is a Classic Car?
Vehicles must meet a few different benchmarks to qualify as classic cars. Usually, they must be:
Restored and/or well maintained
Used only for auto shows, exhibitions or periodic transportation (i.e., vehicles cannot be driven regularly)
Stored in a fully enclosed and lockable structure
Different insurers define classic vehicles differently and they will insure them in different ways. The policy you need might be referred to specifically as antique car insurance, modified car insurance or by another name. The terms of each policy might vary, as well. You will need to work with your agent to determine what plan is best for your needs.
What Are the Special Terms Within a Classic Auto Policy?
Classic auto policies will provide familiar auto coverage like liability, collision, comprehensive, uninsured/underinsured motorist and medical payments. Other terms are unique to classic auto plans:
Most classic auto policies contain agreed value coverage. Agreed value coverage pays for the vehicle based on the value you and your insurer determined when you bought the plan. A deductible will apply, however.
Policies can offer inflation guards. An inflation guard will increase the agreed value at intervals to account for inflation and appreciation.
If your policy includes spare parts coverage, you will be able to replace items like spare tires if they are lost, damaged or stolen. This is an important feature to have on a classic auto policy, since spare parts can be as rare as the vehicles themselves.
Some policies allow flexible usage, which means you won’t face as many restrictions (e.g., mileage limits) on how, when and where you can use the vehicle.
Policies can also cover risks associated with your attendance at auto shows. For example, auto show medical reimbursement coverage can compensate someone who sustains an injury at an event featuring your car. Some policies include a no attendance required rule, and the policy will continue to cover your vehicle even when you are not present with it at a show.
With the help of The Cowey Insurance Group, you can design a classic auto insurance policy that is perfect for you and your vehicle. Call us at 252-638-1345 to get coverage today!