Owning and operating a classic is more than just a hobby. For many, it’s a passion that represents a significant investment of time and money – an investment that needs to be protected. In the sunny state of Florida, where classic cars are a common sight, it’s crucial to understand the specialized insurance options available to protect these automotive treasures. Today, we will discuss insurance for classic cars and the choices you have when finding coverage.
What Is Classic Care Insurance?
Classic car insurance is specialized coverage designed to protect vehicles that are more than just a means of daily transportation to and from work. Classic car insurance provides tailored protection that standard auto insurance policies may not offer.
Coverage Types
A typical classic car insurance policy includes standard coverages like liability, uninsured/underinsured motorist, and personal injury protection, just like any other insurance. However, what sets it apart is the unique considerations put into this insurance that have unique, classic cars in mind. One such feature is the “Agreed Value,” where the insurer and the insured driver agree upon the car’s value at the start of the policy. This agreed value is what you’ll receive in case of a total loss, offering peace of mind at all times. Other special coverages may include restoration coverage, spare parts inventory, and even trip interruption benefits.
Eligibility Criteria
To qualify for a classic car insurance policy, the vehicle and the owner must both meet certain criteria. The car’s age is often a determining factor, with many insurers requiring the vehicle to be at least 20 to 25 years old. Usage is another crucial aspect, as these policies are generally not for cars used as daily drivers. Most insurers also require that the vehicle be stored in a secure, enclosed space when not in use. As for the owner, a clean driving record and a minimum age are usually prerequisites for any policy.
Florida’s unique climate and driving conditions may put more restrictions on how and where you store your vehicle compared to other states. If you are finding coverage in Florida for the first time, it’s important to consult a local insurance agent who can help you find complete coverage that offers you peace of mind while complying with local laws and regulations.
Aspects of Classic Care Insurance
Let’s talk more about each of the unique aspects you will see in standard classic car insurance policies.
- Value Assessment: One of the most significant differences between classic car insurance and standard auto insurance is the process of assessing the vehicle’s value. In a standard policy, the payout for a total loss is based on the car’s “Actual Cash Value,” which factors in depreciation. However, classic car insurance operates differently, on an “Agreed Value” basis. This means that the car’s value is agreed upon at the start of the policy, and this value can even appreciate over time.
- Usage Limitations: Standard auto insurance is designed for daily use vehicles, covering regular commutes, errands, and vacations. Classic car insurance is more restrictive. It often includes mileage limitations and may only cover the car for specific uses like exhibitions, parades, or car shows. Some policies even specify that the vehicle must be stored in a secure location when not in use.
- Repair and Parts: When it comes to repairs, classic cars require specialized attention. Standard auto insurance may not cover the full cost of authentic or rare parts. In contrast, a classic car policy often guarantees coverage for these specialized components – crucial for maintaining the car’s value and historical accuracy.
- Cost Benefits: Interestingly, classic car insurance is often less expensive than standard auto insurance. This is primarily because classic cars are usually driven less frequently, posing a lower risk to insurers. However, the exact cost can vary based on several factors, including the car’s agreed value and the selected policy.
If you have further questions regarding the best way to protect your classic vehicle, call the car insurance experts at Anderson & Associates Insurance Group. We are your local Manatee and Sarasota insurance professionals, ready to help at a moment’s notice.
