There is nothing more stunning than seeing a classic car rolling down the road. If you are a proud classic car owner you want to do everything you can to protect your investment. You keep it clean and well maintained, but do you have the proper insurance for your beloved classic?
Traditional auto insurance policies usually cover your car up to its actual cash value, which equals its replacement cost minus depreciation. Collector car insurance usually covers your classic vehicle for an agreed, or guaranteed, value that is mutually agreeable to you and your insurance company. Collectible cars generally increase in value, especially if they are well maintained and/or restored. Everyday automobiles generally decrease in value over time. So it is important to have the right insurance coverage for your classic car!
How do you know if your car is eligible for collector car insurance? Insurance companies require that a collectible car not be used as a primary driving vehicle. Insurance companies will also place a maximum annual mileage restriction. This restriction can vary from state to state, but generally the mileage cannot exceed 7,500 miles per year. You can only use your classic vehicle for pleasure driving or a hobby activity such as participating in a parade or attending a classic car show.