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Having the proper insurance for your collector car or hot rod is extremely important. Many collector car owners choose to find insurance through their traditional daily driver automobile insurance companies, thinking they will get a discount for having multiple automobiles insured. Discounts can apply in this case, but your collector car could be severely underinsured.
The first thing classic car owners or soon to be owners need to realize is that collector car insurance is not that expensive, if you have a fairly clean driving record. Collector car insurance companies know that your collector car will not be a daily driving vehicle for you (It shouldn’t be!), and that you will take care of your car, probably a lot better than your daily driving vehicle.
There are some requirements you will need to meet to acquire a collector car insurance policy. The first is proving that you have a daily driving vehicle. This car can be insured by anyone, the collector car agent just wants to make sure you have another vehicle so you will not be using the collector car for your main mode of transportation. You also will need a garage or some other sort of enclosed storage space. A car port or some shelter from the sky is not enough as it must be enclosed and locked to deter theft.
There will be some limitations on your collector car policy as well, mainly mileage and age restrictions. The minimum age is generally 25 years old, and sometimes 30. Some agencies also require a minimum 10 year driving record that is fairly clean. Mileage restrictions vary between insurance companies, but they are usually restricted by monthly or yearly limits. Typical limits are 250 miles a month or 2500 miles a year, and can be raised some by paying an extra premium. Some agencies require a yearly odometer reading, but it is possible to find packages that do not have a restriction on mileage.
It is important to find the true value of your collector car, and to insure it for that amount. Having a record of all receipts of parts and service done can go a long way in proving the true value of your collector car. Don’t forget about rare factory options, models built by famous designers and customizers, and the true potential value if your collector car was properly restored. The $2000 rusted out beater you bought may be worth $80,000 if properly restored, but you will likely not be able to insure it for that high of amount.
As your restoration project chugs along though, you will want to make sure your insurance package covers the new additions and money being put into the project, even if it is currently in a shop. Many collector car owners who have their cars in restoration shops falsely believe that because the shop has insurance, their cars will be covered if the shop burns to the ground. It is true the autos may be covered, BUT if the insured amount of the shop is 2 million dollars and the autos in the shop were worth more than 2 million, some will not be covered or under covered.
Owning a collector car or classic car can be a fun experience, but don’t try to take corners on your insurance policy. Make sure you have the right amount of coverage and that you are using a proper classic car insurance agency to protect your car and your bank account
