If your car has been in the family for years, it holds a special place in your heart. Your car has been with your family for your birth, your graduation, and now the birth of your own child. Just because you own an old vehicle does not necessarily mean it is a classic. The sentimental value your vehicle has does not always translate into a monetary value. The idea of parting with your old reliable piece of machinery may sound difficult. If you are thinking of insuring your vehicle with classic car insurance, you should understand what insurance companies define as a classic car. Understand the difference between an old car and a classic car and determine whether you need a classic or Old Car Insurance Quote.
What Do Insurance Companies Classify as Classic Vehicles?
If you are trying to decide whether or not to purchase classic car insurance, you should understand how a classic car is defined. Insurance companies once had very strict qualifications on what was considered a classic vehicle. For one, the vehicle had to be at least 25 years of age and considered a collector’s item. Now, some insurance companies will cover vehicles as a classic car as long as they qualify in age. The value of the vehicle is not always a deal breaker. If your vehicle is over 25 years old, you must consider its value before choosing to invest in classic car insurance. Just because your car qualifies as a classic in age, does not necessarily mean it deserves special coverage.
How Does Standard Car Insurance Pay Vs. Classic Car Insurance?
If you have never made a restoration to your vehicle, it may be wise to invest in standard car insurance. The primary difference between an Old Car Insurance Quote and a classic car insurance quote is how the policy will pay you in the event of a physical damage claim. Classic car insurance is based on an agreed value. You will need to get an appraisal to determine what the true value of your vehicle is. A standard car insurance policy pays you based on the fair market value of the vehicle. If you have not restored your classic car, chances are it does not need to be rated on agreed value.
Classic Car Insurance Has Limitations
When you insure a classic car, the insurance company will place restrictions on your policy. You will have to store your vehicle in a safe place and you may be limited on how often you can drive the car. If you do not need special coverage, old car insurance is the way to go. You can park your vehicle wherever you like and drive it as much as you want without paying higher premiums.
Some older vehicles are not worth much in terms of money. Just because Old Betsy holds a special place in your heart does not mean your insurance company will pay you a small fortune if she is totaled. Think practically and request an old car insurance quote if you own an old car that is not truly a classic.