Classic cars are either inherited or are collected as a hobby by many people. Classic cars are treated in a special way and therefore the types of policies offered are also different. Collector vehicle insurance can be, quite different from standard auto insurance on the basis of availability, coverage, and cost. It is in the interest of the collector, to understand the differences and accordingly opt for the right policy.
Regular or standard insurance companies usually do not provide classic car insurance. There are specialized companies in the market that provide this type of insurance. These companies understand the requirements of a collector and offer a policy based on the model, color, usage, value, and age of the vehicle. However, as the classic car is valuable and its value increases with time, the risk for the insurance company is more with this type of insurance. Therefore, there are many restrictions on the collector towards the use of the vehicle.
A collector is usually allowed to drive the classic car for a couple of thousand miles per year. However, it is up to the insurance company to allow a higher usage limit for possibly a higher premium or deductible. The garaging requirements are also quite stringent, as it is required by the owner to keep the car in a garage when it is not in use.
Typically, to get a collector vehicle insurance, the car owner must have at least 10 years of driving experience with a good driving record. These terms, however, vary from state to state. For instance, in Massachusetts, the vehicle must be at least on twenty-five years old, to qualify for collector?s insurance. The owner is also required to have other car or cars for general use.
These restrictions not only reduce the risk on the classic car but also affect the cost of purchasing this insurance. Therefore, classic car insurance cost less than the regular insurance as no commercial use, daily driving or running errand is allowed.