Classic Car Insurance for Newbies
Those who have just recently purchased their classic cars would probably think that they have made one of the worst mistakes in their lives. Classic cars have so many years for things to break and corrode that you might think you are just buying somebody else’s worries. There are indeed many joys but unless you have the right classic car insurance product to cover your “pride & joy”, you are leaving things to chance. There-in lays the problem. By not you would have realized that most normal car insurance companies will not insure classic cars. Below we will look into why this is the case and also provide important advice on how to solve this problem.
The first thing to understand about car insurance for classic cars is why normal car insurance companies steer clear of classic cars. Part of it is to do with how classic cars are valued differently to normal cars. The value of normal cars lay in their market value and their economic value to the user of the car. Classic cars are very different. Their value lays in the emotional attachment that the owner has for the car. There is almost no logical sense to maintain a classic car, only that it brings your delight in owning it. Normal car insurance companies can calculate economic value and market value but can’t calculate emotive value. In the eyes of a car insurance company, dealing with something emotive is actually quite dangerous and most will not want to pursue this small market.
Prospective classic car insurance users should also understand the concept of agreed value and market value. Most classic car insurance products are based on agreed value while most normal car insurance products are based on market value. This is the defining factor that addresses the differences in normal valuation models as described earlier. With agreed value, you come up with the number that you think is right to value your ride. With market value, the insurance company will come up with the figure and will check the market again if you make a claim. Straight away you should recognize that market value policies are rather dangerous for classic car owners. It is up to the insurance company to determine how much your car is worth. It is almost the job description of the insurance adjuster to value your claim down to an unacceptable value.
Newbies should also understand that car insurance for classic cars is quite different to normal cars. Classic cars are generally memorabilia items and are kept for emotive reasons. The insurance model for classic cars is very similar to insurance models for paintings, one-off pieces of art and anything that is collectable. Applying normal car insurance to classic cars is a mismatch and should not be done. A classic car insurance policy is very much a custom policy that is specifically made to match the needs of the car and the user. In most instances, there are no two classic car insurance policies that are alike as most users have different ideas on how to use their classic cars. The sheer customizability of classic car insurance is another reason that normal car insurance companies don’t take up classic cars. Most of the time it is just too much hassle to customize all policies for such a small market.
As mentioned earlier, classic car insurance is very much a customized car insurance plan. It is quite different to normal car insurance plans where you can just buy a plan “off-the-shelf” such as a comprehensive coverage. With classic cars, each owner uses their car for different purposes. Some are weekend warriors that only use their cars at the end of the week. Some use their cars everyday as daily drivers while the opposite is also true where some just cart their pristine classic cars to different shows around the world. Some even love to get their hands dirty and can’t help but to pull apart and reassemble their cars. With each different case, the requirements for their classic car insurance are very different. Each will need different coverage options, some heavy on road coverage while some heavy on storage coverage. The more you pay attention to your coverage needs, the more precise and cheaper your insurance will be. Cheaper because you can trim off any coverage items that you think may not be so valuable to you.
One of the best resources to find reliable and cheap classic car insurance is one of the most basic things that you’d sometimes not even think off. You should first approach clubs and owners of cars the same as yours. These guys have probably had all the insurance troubles that you’ve had before. They can point you in the right direction with regards to car insurance and also other important tips regarding the ownership of your classic car. Ask as many people as you can so you can get a good idea of what is good to do and what isn’t.
One of the proven methods of keeping your car insurance premiums down is to put a cap on the number of miles that you travel. Since most classic car owners already take care of the number of miles they do the next logical step is to have your car insurance reflect the “limited use” condition that you might have already imposed on yourself. By restricting the number of miles per year you can expect a very healthy discount on your yearly premiums.
As mentioned earlier, insuring a classic car is very similar to insuring a “one of a kind” item or a piece of artwork. The insurance company will look into security measures used very carefully. Most companies that deal with classic car insurance will even have specific security firms that they recommend for car security and storage security. If you use the services of these security companies then the insurance company will normally offer a discount on your car insurance policy.
Above we have listed some points for newbies to consider when looking for classic car insurance. At first it will be difficult as you think that you are insuring a normal car when in fact you aren’t. As you read more and gain more knowledge you will soon realize that it isn’t as hard as it seems. We again have to state that other owners of cars like yours have a wealth on information and should be sought out. They can not only help you with you car insurance needs but also help you with other aspects of owning a classic car. No one ever said that it was easy to own a classic car. It will take your time and money to enjoy. One of the important things to have is a proper classic car insurance so you can use your classic car with the confidence of coverage.
Find the important tricks of the trade for classic car insurance products. We look at ways how you can keep your premiums down while still keeping your coverage for your pride and joy high.
