Picking a car insurance company for your classic car can be a difficult process. The auto insurance industry gives you different information about coverage and policies. Specialty insurance coverage can be had for a lower rate over a normal insurance policy, but you need to know its limitations. It pays to do your homework to make sure you’re getting the best value possible.

There are a lot of critical points you need to consider before choosing an insurance company:

1. How many miles do I plan on driving each year?
2. What’s my acceptable risk in the case of a claim?
3. Do I want to drive my classic car every day?
4. How difficult is it to find parts in the case of a repair?
5. Do I need a local agent?

Mileage is an critical factor for classic vehicle insurance companies. They offer insurance coverage for your collector car at a lower rate because they require that your usage is limited. The average collector car insurance company allows for a cap of 2,500 miles per year driving for their insurance plans. The limited driving means a limited amount of exposure for the insurance company. Some companies, such as Hagerty, offer unrestricted driving privileges but impose other limitations, such as no driving to work or daily driving uses.

Old Cars Are Risky To Cover

Traditional insurance coverage typically pays for repairs based on the industry standard prices established for your vehicle. This rate assumes the parts are readily available and can be purchased by normal processes. They are unable to guarantee that your 1970 ‘Cuda AAR will be repairable with NOS parts, as these are only available in limited quantities. To ensure your classic car is covered completely for any damage is to purchase stated value insurance. Stated value insurance allows you to set a price to the value of your car, and in the case of a claim you can be sure that your vehicle is covered for damages up to that amount. This is ideal for limited production vehicles or cars that are of special value.

Don’t Drive Your Rare Mustang To Work

Insurance companies that cover specialty vehicles typically ensure that you have another vehicle to drive on a daily basis. They do this because they don’t want you driving your collector car to work every day. This is because they limit their risk by restricting your mileage. Some companies give you a clear limit to how many miles you can drive. Others simply have rough guidelines.

Collector Cars Are Expensive To Insure

Rare cars can be expensive to repair because of the cost of the replacement parts. Standard insurance policies will not cover sourcing original New Old Stock (NOS) parts for a specialty car. They’ll only use generic replacement parts. This may effect the value of the vehicle when it comes to resale value.

Please Make sure you understand the importance of finding the right insurance company for your vehicle. Sites like Classic Car Insurance and Collector Car Insurance Tips are great places to start your research. Find out what’s the best choice for your needs before you take to the streets this car show season.