The Need for Specialty Car Insurance

If you own a classic car, you know you must have car insurance, but the insurance needs for your classic car are not the same as for your every day car. For your classic car, you will want specialty insurance. Just as your classic car is different from your daily car, specialty insurance differs from stand insurance in some very important ways.

Classic Car insurance is available for a wide variety of collectible cars, from antique autos to restored muscle cars to custom cars. While traditional insurance is required for every car on the road, custom cars aren't required to have to have antique car insurance, even though the car may not be fully covered under a standard policy.

Classic car insurance covers cars that may have gaps in regular car insurance, but not every car that is antique or modified will qualify for specialty insurance. Standard insurance is available for all cars, but cars must meet certain criteria to be covered by specialty insurance. Cars that are over 25 years old used to be considered collectible, but that is not the case now. Just because your car is 30 years old doesn't mean that it will qualify for specialty insurance.

To qualify for specialty insurance a car must have certain specific characteristics. Some of the characteristics are unique body shapes, muscle cars, German sports cars, convertibles and big block V8 engines. To qualify as a "classic car" by law the vehicle must be at least 25 years old. Your local Bureau of Motor Vehicles can help you determine your car's eligibility.

Some of the other types of vehicles that may qualify for vintage car insurance coverage are older trucks, older fire trucks and other commercial vehicles and hot rod cars that have been fitted with hydraulic suspension systems. Classic motorcycles like the Indian Chief and the older Harley Davidsons can also be insured with a specialty policy.

Having determined that your car qualifies for specialty car insurance, there are some limitations and differences from regular insurance that you should know about. Regular insurance is designed to protect cars that are daily drivers and are often put in situations where damage can occur. Antique car insurance often places restrictions on the use of the collectible cars to limit the chance that the car will be damaged.

Several classic car insurance policies won't cover daily use of the car. Specialty car insurance policies also usually state that the cars must be covered in a garage at all times. These measures mitigate the risk that an valuable vintage car will be involved in an accident. These measures help keep premiums for specialty insurance substantially lower than non-specialty insurance premiums.

One difference from standard insurance and classic car insurance is the types of policies you can purchase. In standard insurance, vehicles that have been in an accident will either be repaired or will be deemed "totaled" and a check will be issued to the owner for the actual cash value. Classic car insurance policies can be assigned an "Agreed Value." An agreed value policy ensures car owners that they will receive a prior agreed upon amount in the event of an accident. An agreed value policy does not depreciate a car's value in contrast to actual cash value policies and stated value policies.