Classic Car Insurance Buying

Classic car insurance is a must if you're pursuing financing for your classic car purchase. How do you know you're getting the best classic car insurance deal?

Classic Car Insurance Tips
One great way to find a good insurance company that handles classic car insurance, and not all automotive insurance companies do, is get a referral from someone who also owns a classic car. If you are just getting into classic cars, you might want to go to a classic car show or street show and ask other owners for help. In addition, depending on the type of show, insurance companies who carry insurance policies for classic cars might also have information available and agents with whom you can discuss possible insurance policies for your car.

Make sure that your coverage covers the number of miles that you will be traveling with your car. For example, if you are going to use your car for car shows and exhibits only, your insurance rate will be different than if you are going to use your vehicle for everyday use.

You will probably be offered insurance for stated value or agreed value of your car. Stated value allows your car to depreciate. You will probably have to pay a deductible and your insurance may not cover the whole stated value of the car. An agreed value policy will cover your car 100 percent and usually doesn't have a deductible. Make sure that you understand the difference between the two types of insurance and the impact each choice would have on you before you get your insurance.

Keep monitoring the value of your car after you get insurance. If the value goes down over time, you may be eligible for a less costly policy. On the other hand, if the value of your car takes a big jump, you may be underinsured.

Read your insurance policy carefully before you sign, especially the small print. Never sign a contract unless you completely understand the terms used and the pros and cons of the choices offered in different types of policies.