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The best classic car insurance
policy to take out is one whereby you receive
an agreed amount for your classic car if
it is stolen or written off.
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Old Classic -
Classic Car Insurance
Classic Car owners often
have particular requirements when it comes to insuring their vehicles.
Most classic car
insurance claims are related to repairs for accidental damage
rather than for theft or payouts for
Write Offs. Therefore, it is important to
ensure that the classic car insurance company providing cover for your
classic car will allow
for the use of original parts where possible.
Cover is available from standard car insurers and from
specialty classic comprehensive car insurers.
Be sure to read the policy details if insuring with a standard car insurer, check
things such as whether you can stipulate the garage where the repairs are to
take place and, as previously mentioned, if priority would be given for finding
original replacement parts.
Also, standard car
insurance policies have no guaranteed value for
vehicles at the time of making a claim. Factors influencing premiums include
the type of usage, how the car is garaged, the driver's age and driving record,
annual mileage and geographic location of the policy holder's address.
Unlike the average car,
classic cars tend to retain their value, which depending on the
make, model and condition, generally increases over time.
However, with most
policies it is the car insurance company that decides what your car is
worth when a claim is made (the Actual Cash Value). So settling the final
amount is largely out of your hands. If you disagreed with the figure, you
would possibly need to enter into time consuming complaints proceedings.
One policy type suited to covering classic and collectors cars is
commonly referred to as Stated Amount or Stated Value policies. Here the car
insurance company will pay out either the stated amount, the repair
cost (up to but not exceeding the stated amount) or the actual cash value,
whichever is the lesser. The higher the stated amount agreed at the policy's
inception, the higher the premium.
The best policy to take out is one whereby you receive an agreed amount for
your classic car if it is stolen or written off. The claimant would receive the
lesser of the agreed amount or repair costs (not in excess of the agreed
amount).
The agreed amount reflects the market value of the car at the start of the
policy. This amount should be changed annually on policy renewal in line with
market fluctuations.
