ISFMA the Blog

Picking a auto insurance company for your antique vehicle can be a difficult process. The auto insurance industry gives you conflicting information about coverage and policies. Antique insurance coverage can be had for a reduced rate over a normal insurance policy, but you need to understand its limitations. It pays to do your homework to make sure you’re getting the best deal available.

There are several critical points you need to review before picking an insurance company:

1. How many miles do I plan on driving each year?
2. What’s my acceptable risk in the case of a claim?
3. Do I want to drive my classic car every day?
4. How difficult is it to find parts in the case of a repair?
5. Do I need a local agent?

Mileage is an critical point for collector vehicle insurance companies. They offer coverage for your classic car at a lower rate because they determine that your usage is limited. The average collector car insurance company allows for a maximum of 2,500 miles per year driving for their insurance plans. The limited driving means a limited amount of exposure for the insurance company. Some companies, such as Sneed, offer unlimited driving privileges but impose other limitations, such as no driving to work or daily driving uses.

Old Cars Are Risky To Cover

Standard insurance coverage typically pays for repairs based on the industry standard prices established for your vehicle. This rate assumes the parts are readily available and can be purchased by standard processes. They are unable to guarantee that your 1969 Ford Mustang will be repairable with NOS parts, as these are only available in limited quantities. To ensure your collector car is covered to the full extent of any damage is to purchase stated value insurance. Stated value insurance allows you to set a price to the value of your car, and in the case of a claim you can be sure that your car is covered for damages up to that amount. This is ideal for collector vehicles or cars that are of special value.

Please Don’t Drive Your Classic Mustang To Work

Insurance companies that cover specialty car typically ensure that you have another vehicle to drive on a daily basis. They do this because they don’t want you driving your collector car to work every day. This is because they limit their risk by limiting your mileage. Many companies give you a clear limit to how many miles you can drive. Others simply have rough guidelines.

Rare Cars Are Expensive To Insure

Rarity can mean that when it comes to replacing parts from an accident the parts themselves may be difficult to source. Standard insurance policies will not cover sourcing original New Old Stock (NOS) parts for a specialty car. They’ll only use generic replacement parts. This may effect the value of the vehicle when it comes to resale value.

Make sure you understand the importance of finding the right insurance company for your vehicle. Sites like Collector Car Insurance Reviews and Specialty Car Insurance are great places to start your research. Find out what’s the best choice for your needs before you take to the streets this car show season.