Classic cars are unique to each individual owner. Some classic cars are driven frequently, while others remain in storage for long periods. Some are older than others, and some classic cars are more “stock” than others. Given all of these potential variables, it is easy to see that a “standard” insurance policy would not likely be able to serve the needs of all classic car owners. Insurers have developed policy formats for classic car owners that can serve many different needs.
One of the most common features of a classic car insurance policy is an agreed value provision. This type of policy language provides that the insured person and the insurance company both agree on the value of a classic car before the policy is written. In this situation, the value of the car is paid to the policyholder based on the agreed value in the event of a total loss regardless of the market value, or actual cash value.
Another unique feature of classic car insurance policies is the relatively low rates as compared to a standard auto policy. Dollar for dollar, you are likely to pay less for this type of coverage than a standard policy due to the limited use that classic cars are typically subjected to. Limited usage translates to less risk for an insurer, particularly when it comes to liability claims. In fact, the fewer miles that you drive, the more you can save on your classic car insurance premium.
Classic car insurance policies are available with many enhancements, one of which is roadside assistance that pay for towing or transportation services to get your classic car to a service facility in the event of trouble.
Classic car owners in Kansas should be aware of the minimum liability requirements established under state laws. While there are no insurance requirements regarding the amount of coverage you carry for physical damage to your own vehicle, there are important requirements regarding liability coverage. In Kansas you mush carry at least $25,000 per person, and $50,000 per accident to pay for bodily injuries resulting from an accident caused by you. Additionally there is a requirement that you maintain $10,000 in property damage liability.
The minimum coverage requirements are not necessarily the best option for most classic car owners. In general, liability coverage should be evaluated in the context of potential loss to one’s total assets. If liability limits are too low, you could be held financially responsible for the difference between your policy limit and any judgment rendered against you.
When evaluating your insurance needs, be sure to consult an experienced and professional insurance agent. Classic car owners should be particularly concerned with an agent’s experience with classic car policies, as there are unique characteristics to this type of coverage. Insurers have become aware of the specialized needs of classic car owners and now offer many incentives for premium reductions, so be sure to ask about any discounts that may be offered by your insurer.