Whether you purchased your classic car in mint condition or you have painstakingly restored it yourself, you probably have a considerable financial investment in the vehicle. As with any significant asset, you may consider purchasing insurance to protect your investment.
Everything from theft to collisions can affect the value and condition of the classic car. However, there are different types of coverage available for classic cars, and it is important to understand the different coverage options before you purchase your policy.
How You Plan to Use the Car
A classic car can be used for several purposes. Some people will transport their car to car shows for display purposes, and they may never drive the vehicle on the road. Others may use their vehicle for weekend joy rides. Some coverage dictates how many miles per year you can travel in your classic car.
A coverage option may be added for car show damages. Other coverage can be used during the restoration period, though it may cease once the restoration has ended. Because there are numerous coverage options suitable for classic cars, it is important to purchase the right policy for your needs. In addition to the initial policy purchase, you should update your policy as your coverage needs change.
The Value of the Car
It can be difficult to value a classic car, and this is even more challenging if you have completed the restoration yourself. A Nova Scotia insurance agent reports that some insurance companies will value the vehicle based on the price you paid, while others will allow you to insure it based on your own estimated value. Many restored classic cars can have considerable value which increases over time, so trusting the insurance company to estimate the value may wind up costing you in the long run.
In addition, you should consider your need for basic auto coverage. For example, any time you purchase vehicle insurance, you have the ability to purchase liability, collision or comprehensive coverage. Comprehensive coverage may protect you from loss related to collisions, theft and other damaging events that could result in significant or total loss for you.
If you have purchased your first classic car or if you are shopping for new coverage, you should educate yourself about different coverage options. Not every insurance provider offers the same options, so you may need to shop around in order to find the most suitable insurance policy for your needs and to ensure that you do not pay more than necessary for your coverage.
Informational Credit to Eisenhauer Insurance Inc.