There
are all sorts of myths and rumors about insuring vintage cars: you
can use normal auto insurance, you have to have an appraisal, if
anything is modified you can't insure it. Sorting out the truths and
misconceptions can be worse than being caught in a rainstorm with a
convertible top that won't cooperate.
The
reality is, whether your collector car is a hot rod you keep in
storage, or one you actually drive from time to time, you need to
insure it to protect the investment, and to protect yourself if you
do take it onto the street.
Here
are five things you need to know before you go searching for
insurance quotes:
Standard
auto insurance coverage is not enough.
If
you aren't concerned with the value of your vehicle, and just want
enough coverage to protect you from theft and keep your vehicle
street-legal, you can get away with adding your vintage ride to a
regular auto
insurance policy, but you'll be better served by
asking your insurance agent to refer you to a company that handles
special collector car policies. These policies generally pay an
agreed amount for a total loss, rather than the cash value paid with
conventional insurance, and that agreed amount can be the full
insured value of the car, less any deductibles. Even better, the
deductible for a collector car policy is often…nothing.
Collector
Car policies are neither expensive nor substandard.
Actually,
when it comes to insuring your vintage hot-rod, or any other antique
car, you're likely to find that a specific collector car policy is
less expensive than bundling your specialty vehicle with the family
SUV.
The
reason such policies cost less has nothing to do with the standard of
coverage, either. Such policies are less expensive because collector
cars pose less of a risk to the insurance company. Unlike your family
car, the hotrod you spend hours tuning isn't likely to be driving
every day, or on busy city streets, but on a limited basis on tracks
or in less crowded environs. Insurance companies know this, so tailor
their product to serve your niche.
The
collector car niche isn't a small one, either. Analysts estimate that
there are roughly 14 million cars from before 1976 still in
operation, about half of which can be considered "collectible."
Of the rest, the estimate puts about half in standard auto policies,
not because such policies are better or cheaper, but because their
owners are unaware of other options.
You do not
have to be in the car for insurance to be valid.
There's
a popular myth propagated by an insurance ad that depicts a vintage
car owner having his claim denied because he wasn't in the car when
it was damaged. This is grossly untrue.
What
is true, however, is that there are some guidelines in place to
assure that collector car policies cover vehicles that really are
treated like prized possessions. They include:
The policy
holder must also own at least one passenger car, and in some cases
there must be a conventional car for each licensed driver in the
household.
Usage is
limited to pleasure drives and hobby activities (car shows, etc.)
The car must be
stored in a garage when not in use.
The owner must
have a good driving record
The owner
should have at least ten years of driving experience
Your car
does not have to be an actual antique to qualify for a collector
policy.
With
the exception of Massachusetts,
where vintage cars have to be at least twenty-five years old (the
defining age for an "antique" car), it is possible to get
collector car coverage for a models that are as new as fifteen years
old, but such vehicles must be among the list of acceptable options,
which includes street rods, classic cars, muscle cars, vintage
motorcycles, and certain collector vehicles from the 1980's.
Generally speaking, however, getting collector coverage will be
easier if the car really is a certifiable antique, 25 years old or
older.
Appraisals
are not always required.
Generally
speaking, there are very few hoops one must jump through in order to
insure a vintage hotrod, or any other collectible car. With most
insurance companies, appraisals are not required unless the car in
question is either heavily modified, unusually expensive, or
extremely rare, but the insurer does have the right to request one.
Normal
application requirements generally include:
Confirmation
that the car is stored in a garage when not in use
Confirmation
that the car is driven on a limited, for-pleasure basis
Recent photos
of the vehicle
Itemization of
any major modifications
Payment of the
premium
As
of 2006, the vintage car business was estimated at around $3.5
billion, with a fast growth pace. Knowing the facts about insurance
quotes and insuring your vintage hotrod will help you
to ensure that you and your investment in this industry are well
protected.
