What is Antique Car Insurance?

In the United States, a vehicle over 25 years old is considered to be antique. However, in UK, this condition is used to refer to those items, which are over a 100 years old. Usually, the terms classic and antique car are used synonymously.

Practically, a car as old as 25 years or more, is not economical for regular transportation. Also, its repairing costs may be too high. Many hobbyists own and maintain such vehicles for their personal interest, or for the sake of investment.

However, purchasing them is akin to investing in a white elephant; even though you may not use it, you will have to spend on its maintenance. In such a case, buying an insurance cover may be a convenient way to meet its repair and maintenance costs.

Whatever may be the objective of owning an antique vehicle, it is equally important to find the cheapest insurance for it. Though premiums for auto insurance may vary, it is observed that their cost is less than that of a modern car. Let's take a look at some of the important aspects of this insurance, to help you find a good policy cover at a cheaper rate.

Companies provide a discount for such policies, provided that the vehicle is at least 30 years old, and is not modified with a fixed nitrous system. Most of them put forth a condition, that your car has to be locked in the garage, when it's not in use.

Most insurance companies do not provide coverage for such vehicles, if they are used regularly. Some policies even place restrictions on its use in auto shows and events. Hence, while buying an insurance plan for your car, make sure that you read the offer document carefully. Otherwise, there may be a problem during the settlement of the insurance claim.

In case, you have a second car, other than the old one, there are better chances to get a cheaper policy for your antique car. However, it is necessary that the other vehicle should also be insured, and for that, you can take up a minimum liability coverage.

Also, do not forget to ask for an agreed valuation, even if you need to pay extra for it. This valuation is the amount that the company agrees to pay, in case the insured vehicle is stolen or written-off. Also, make sure that it is guaranteed, since there have been cases of denial of claims.

Check with the insurance company, whether this valuation will increase after every year or not. As the value of an antique car increases after each passing year, it may be very costly to replace any of its accessories and rare parts.

Always opt for limited mileage policy depending upon your car mileage. In case, you don't drive your antique car, it is advisable not to take the full insurance package. Instead, you can take a liability coverage, and save the premium amount. Nowadays, many auto insurance companies provide a custom policy, depending upon the requirements of their clients.