Insuring a Classic-What Coverage Do You Need?

Your classic vehicle isn't merely a vehicle. That's why your classic coverage isn't just a typical vehicle insurance policy. Instead, it's a different policy intended for your classic and comprises coverages that are more specialized.

When it comes to insuring your classic vehicle, you'll discover it costs approximately 40% less than a typical auto policy. Classic vehicles aren't merely classic or antique vehicles, they also comprise low riders, street rods, and vintage commercial cars. Here's a list of available coverage for your classic car.

Roadside Assistance

This policy will help you get back on the road fast in the event that you break down. Roadside assistance covers the expense of towing to the nearest experienced repair shop and other fundamental emergency services such as fuel delivery and changing a flat.

Depending on the service provider, they'll tow your car to a mechanic at no cost to a restricted number of miles. In the event that you wish to take your car further, you'll incur extra charges.

Another advantage of this policy is that you can benefit from lockout service in the event that you leave your keys accidentally in the car, or lose them.

Considering the broad range of coverage, which this add-on provides, it's very important to purchase it, whether it's a new or classic vehicle. Remember, emergencies such as a flat tire or running out of fuel can happen to anybody anytime. Therefore, roadside assistance saves you from the out-of-pocket costs.

Agreed Value Policy

Classic cars are usually 25 years or older, so standard vehicle insurance rates would prove challenging because of vehicle depreciation. Classic vehicles have a high value from the cars' nostalgia together with the value of the parts, work, and labor put into them.

For this reason, you have to allocate an agreed cash value to the car that considers these factors should the vehicle need replacement. In case of a total claim, the insurer will pay the agreed value without your excess and any established salvaged value.

Under this policy, you can anticipate higher premiums if the agreed value is more than the vehicle's market value. Bear in mind that agreed value offers certainty about the compensation you'll receive from your provider if your vehicle is written off. Furthermore, there's flexibility around the amount you insure your vehicle for.

Restoration Coverage

For this coverage, you'll need to demonstrate that the car is under active restoration. You might need to provide restoration details and good photographs to substantiate an active restoration.

Beware that vehicle restoration is a costly endeavor, so it's prudent you protect your investment because you'll certainly need to put money into it.

While you're in the process of restoration, you must consider this policy so you can adjust your coverage's value throughout the process.

Coverage for Original Substitute Parts

If you're involved in an accident and have damage that needs repair or a part that needs replacement, you may presume that your chosen body shop will order a new part straight from your vehicle's manufacturer. However, if you're filing a claim or looking to save cash, this probably won't be the case.

Numerous people favor original equipment manufacturer or OEM parts compared to aftermarket parts; OEM parts tend to fit better and you'll have the peace of mind that any additions or replacements to your car will comprise parts from the manufacturer.

The problem is that most carriers just offer coverage for aftermarket and not OEM parts. Therefore, don't presume that your vehicle coverage covers OEM parts automatically because it probably doesn't. If you can't negotiate on OEM parts, you'll have to seek a carrier that covers these parts.

Even if you find a carrier that provides coverage for OEM parts, they're perhaps not automatic on a typical policy. Therefore, you'll have to request the coverage and most probably pay an extra fee to obtain it.

Final Thoughts

Anyone who owns a classic vehicle knows that it isn't a cheap hobby. Fortunately, there's one significant thing you can do in order to save money.

Protecting your car with specialty classic vehicle insurance instead of putting it on your typical auto policy is one of the most sensible ways of controlling your hobby. If you don't know the kind of coverage you require, check out this list.

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