After the months or years spent building your dream car, no one wants to think about accidents or damage befalling that special ride. But every year, fun outings in the restored prize end in crumpled fenders and the hassles with repairs. Worse yet, for some, it takes an accident to find out your classic car is not properly insured with the right insurance.
For what it’s worth
From an insurance perspective, an automobile either has a depreciated value based on when it was new, a stated value often based on an appraisal, or an agreed to value depending on possible future appreciation. While differing companies vary in their business methods, most companies insure based on how much the car is actually worth or, if rare or specialty, an expected value each year. These guidelines take into account the difficulty in finding replacement parts and labor involved to make the car showroom or show-quality perfect. This avoids the horror of expecting that totaled pro-street Pinto to be paid for when instead the insurance company sees it as just a car lot Pinto worth a couple hundred dollars.
I got it, I want to drive it
Diligence in inspecting policy requirements is important when insuring a classic car. Restrictions on mileage can hamper fun with a restored auto. Making sure the policy being considered allows enough flexibility in mileage allowances and usage requirements will determine if the insurance is a benefit to you as the policyholder. Age restrictions can come into play with some policies. Many policies require drivers to be at least 25 years old, with some even being as high as 30years old. In addition, some insurance plans offer special incentives such as discounts for storage months.
When it comes to assigning a value to your hot rod, restored auto or specialty vehicle, most insurance companies rely on outside sources for appraisals. Oftentimes companies or individuals looking to be insured will turn to persons in the automobile field. Car clubs focusing on a particular marquee or type of vehicle or good sources for appraising the value of a project. Car consignment houses can also help with putting a value on your ride, but may charge a fee.
Do it now?
It’s never too early in a build to start looking at the proper insurance coverage. Just like you research your paint color and interior choices, researching the right insurance will keep you motoring for years to come.
Information credited to Thomson Schindle Green Insurance & Financial Services Ltd, classic car insurance in Calgary.