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Insuring a classic car is not as easy as insuring a more standard vehicle, so it is important to know a little about how the policies differ and what restrictions to watch out for. The first thing to consider is whether your vehicle is actually classified as being a ‘classic’ one. Not every insurer will agree on the definition of a classic car, so it is important for you to talk to your agent to be sure that the company will consider your vehicle a classic car. Most insurers will actually accept classic cars on their standard car insurance policies, but you may face high premiums if you choose to do this. The agreed value clause, which pertains to the minimum amount that you will receive in the event that your vehicle is in an accident or stolen, and is the primary benefit of purchasing specialty insurance, will not apply when classic cars are placed on standard auto policies.

It will be the present prices being offered in the market, that will determine what the average insurance company will pay you in the event that you make a claim. For classic cars, this often presents a problem as working out their market value is not easy. It is common for your vehicle to be valued at less than it is actually worth, and although you may disagree with the insurer’s assessment, you are required to accept the amount that they have come up with. When it comes to classic cars, the value of a single car model can differ by 50% or as much as 500%, as the market for these types of vehicles is highly price sensitive. With the absence of an agreed value clause, a classic car that is a limited edition, is in mint condition, or has providence, will never bring an amount equal to what it is truly worth. Remember that most insurance companies, especially mainstream ones, will look to pay you as little as they possibly can.

You need to realize that there will be stringent rules attached to a classic car insurance policy that incorporates an agreed value clause. A yearly mileage maximum is one such rule, as it is expected that a classic car will be driven less, and the classic car insurance policy will reflect this guideline. Other guidelines that you may have to adhere to are adding security measures to your vehicle, and putting a limit to the number of classic car shows that you can participate in. The bottom line is that you are going to have to pay more if your car is especially rare and desirable; however, given all the restrictions that are placed on classic car insurance policies, the coverage is often not that expensive. When shopping for a classic car insurance policy, having the agreed value clause included in your policy, should be a priority for you, and it is recommended that you live with a more expensive premium in order to have this clause included.