If you are considering buying a classic car, you are about to enter an exclusive club of car enthusiasts, many of whom live for this particular hobby. Before you purchase your first classic vehicle, you should be aware that the initial price is not your only financial investment. You will also need to buy classic car insurance.
Classic car insurance is also known as collector's insurance. In fact, a variety of vehicles fit into this category. Antique cars, military vehicles, limited production vehicles, motorcycles, and even tractors may be classified in this fashion. What all of these vehicles have in common is that they exist in limited numbers, are considered "treasures," and are not used as "primary" household vehicles.
Insurance for your classic vehicles is considered "specialty" coverage and does not function the way insurance for your regular vehicles does. You will need to work with your insurance agent to get the proper coverage for your situation. What you need depends on the value of your car and how you use it. Your policy may restrict coverage to a certain number of driving miles each year and require that your vehicle is hauled to parade and auto show sites in a covered trailer. You will not be able to use it as your primary car and will often be restricted to driving it less than 5,000 miles per year. Some insurance companies may require that you keep your car inside a garage or auto storage facility. In short, your coverage will probably have many more restrictions than your regular vehicle insurance.
Although policies vary, you will generally be covered for the entire value of your car or the amount you agree on at the time of the policy purchase. Since your car may appreciate in value, you may need to revisit your coverage from time to time to make certain you are completely covered. Your policy should cover you for all the usual problems, including collisions; however, the theft and damage portions of your insurance may be more important when it comes to your classic vehicle.
Before you buy your collectible vehicle, check with your insurance agent about what coverage you will need and how much it will cost you. You need to be fully informed before you complete your purchase and before you take to the road in your new investment. Properly protecting your classic car will allow you to fully enjoy it.