Does your vehicle qualify for Classic Car Coverage?

As the weather warms up, there are drivers who eagerly anticipate the opportunity to roll out their favorite vehicle after a cold winter. Along with the spring and summer months comes the chance to take that long drive to the beach, showcase your car at an expo or parade, or catch up with old friends at car clubs. Are these traditions you enjoy? If so, your vehicle may qualify as a Classic Car.

What is the difference between A Standard Auto Policy and A Classic Car Policy?

Most cars insured under a standard auto policy are insured for Actual Cash Value.  This means that at the time of a property claim on your vehicle; the settlement is determined by the cost to repair or replace minus the depreciation.  Depreciation is the loss in value.  Your vehicle loses value over time due to factors such as age and wear and tear.  However, claims on Classic Car Policies are settled on an Agreed Value basis.  This means when you purchase this policy your insurance company has agreed upon the reimbursement limit or value of your car.  This amount is based on their research as well as documentation you provide such as photos, appraisals and/or restoration receipts. Therefore, if your car is a total loss due to a covered claim, the insurance company will simply pay that agreed amount minus your deductible.

Are you curious to know if your car qualifies for this coverage? Here are the characteristics of a classic car:

Usage: To qualify for Classic Car coverage, a driver must use their vehicle strictly for recreational purposes such as trips to the beach or park on a beautiful sunny day, organized car club functions or parades. In addition, you must also have a primary vehicle that is used for daily purposes such as driving to work, running errands or road trips.   Classic cars are usually not driven in poor weather conditions like rain or snow that could tarnish the car. Classic Cars qualify for lower premiums because they are not driven on a daily basis.

Age: In most cases, “fine” or “distinctive” vehicles that are between 25 and 50 years old qualify for Classic Car coverage.  However, newer vehicles may also qualify if they are considered to be a limited or a special edition model.

Storage: Vehicles need to be garaged when not in use in an enclosed and secure structure like a private garage or storage unit when not in use.

Mileage: Classic cars should only be driven 2,500-7,500 miles per year, based on a company’s respective tiers.

If you’re someone who waits for special occasions or sunny days to take your longtime favorite vehicle out for a drive, it could qualify as a Classic Car! Contact us today so that we can review your auto policy to determine if one of your vehicles can be classified as a Classic!