Unlike vehicles today which depreciate with every mile added, classic cars gain value over the years. Regular car insurance is not sufficient to protect these precious collectibles from damage or loss which is why they require special insurance. As a classic car’s value appreciates, the insurance will need to be adjusted.
Classic vehicles 25 years and older are considered antique cars but if a car’s value exceeds its original selling price, it may be eligible for classic car insurance. There are four different condition descriptions to help determine a vehicle’s value:
Condition #1 – These vehicles are perfect and considered the best in the world. No dirt, dust, scratches or dents.
Condition #2 – Former #1 cars that have been driven or aged. They still have excellent interior and exterior and should drive like a new car.
Condition #3 – These cars may look pristine, but they may not have all of their original parts.
Condition #4 – These vehicles have more obvious flaws such as chipped paint, dents or scratches and wear and tear.
There are many insurance options based on the car’s value, and how often it is driven. It is best to discuss with an agent to determine the right policy for your vehicle. If you plan on collecting, or already collect, classic cars, visit AssuredPartners Personal Insurance to ensure your investment is adequately protected.
Sources: Insurance Information Institute, PropertyCasualty360