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Classic vintage car
insurance
Classic car
insurance is not the same as the insurance you buy for your regularly
driven, "everyday" cars, vintage car insurance can differ significantly
from standard car insurance in terms of availability, coverage and
cost. Classic car insurance can be purchased from a specialty provider
either directly or through your independent insurance agent. Vintage
car insurance is generally not available to individuals with vehicles
that are less than 15 years old, you should also have a decent driving
record, at least 10 years driving experience, other vehicles for
"regular" use, and garage space for your Classic vintage car vehicle
when it's not in use.
Standard car
insurers provide one of two types of physical damage coverage (insurance
for the car): "ACV," or "Actual Cash Value" coverage is the most
typical, and is defined as "replacement cost minus depreciation."
Obviously this is not a good option for classic or vintage cars,
as appreciating car values are not recognized. The second type of
physical damage coverage is "Stated Value," which obligates the
insurer to pay "up to" the stated amount of vehicle value. Note
that "up to" does not guarantee the vehicle's full insured value.
Also note that standard auto insurers typically offer £250,
£500 and £1000 deductible options. Specialty insurance
providers are able to offer "Agreed Value" coverage, which guarantees
the full insured value of the Classic car. In other words, you and
the insurer agree up front on the value of the vehicle, and this
amount is written on the declarations page of your policy. In the
event of total loss, the company is on the hook for the agreed amount.
You can buy
Agreed Value coverage from specialty providers for generally less
than what it typically costs to buy ACV or Stated Amount coverage
through a standard auto insurer. Classic car insurance rates are
typically so low because specialty providers place certain usage
restrictions on insured vehicles, thus limiting the insurer's risk
of loss. The restrictions generally include: limited pleasure driving
& hobby use only (no daily driving, commuting to work, running errands,
etc.), no commercial use, and vehicle must be garage-kept. If you
can live with the usage restrictions, a vintage car policy can truly
bring peace of mind and save money.
Some useful
links below
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