Be careful about insuring your classic car.  It's not like your grocery getting or daily commuter.  To save the maximum amount of money on a classic car's insurance policy you need to do your research.

Some companies will write a policy for whatever amount the owner requests. But down in the small print is an important clause that says the insurance company won’t pay more than the actual cash value of the car, or whatever the company deems the car to be worth.  If you want to insure a $40,000 car for $80,000, they will happily collect the premiums. But if you file a $80,000 claim, they may elect to pay only $30,000 and refund the difference in premiums. If you never file a claim for over $40,000, you’ll never know that you’re paying for coverage you don't really have.

As well as a well-written policy it's important to have other kinds of insurance: not driving cars that are in bad mechanical condition,  separate your car collection into smaller groups that are divided by fire-proof doors and protected by sprinklers, keep paint and other flammable materials away from your cars.

Estimates put the total number of car collectors at 500,000 to a million. Yet the specialty insurers have only about 135,000 policies. Where are the rest?. With normal policies, fraudulent policies, or none at all? A lot of people still are not aware of these special policies for collectors, which can cost 80 percent less than a family car policy.

Choosing a classic car insurance company for your specialty car can be a difficult process. The auto insurance industry gives you conflicting information about policies and coverage. Antique insurance coverage can be had for a lower rate over a daily driver insurance policy, but you need to know its limitations. It's important to do your homework to make sure you're getting the best value available.

Mileage is an critical point for classic car insurance companies. They offer coverage for your collector car at a lower rate because they determine that your usage is limited. The average specialty insurance company allows for a maximum of 3000 miles per year driving for their insurance plans. The limited driving means a limited amount of exposure for the insurance company. Some companies, such as Hagerty, offer unlimited driving privileges but impose other limitations, such as no driving to work or daily driving uses.

Collector Cars Can Be Expensive To Insure

Rarity can mean that when it comes to replacing parts from an accident the parts themselves may be difficult to source. Standard insurance policies will not cover sourcing original New Old Stock (NOS) parts for a specialty car. They'll only use generic replacement parts. This may effect the value of the vehicle when it comes to resale value.

Don't Drive Your Classic Mustang Boss 302 To The Office

Insurance companies that cover classic car typically ensure that you have another vehicle to drive on a daily basis. They do this because they don't want you driving your collector car to work every day. This is because they mitigate their risk by restricting your mileage. Many companies give you a clear limit to how many miles you can drive. Others simply have rough guidelines.

Old Cars Are Very Risky To Cover

Standard insurance coverage typically pays for repairs based on the industry standard prices established for your vehicle. This pricing assumes the parts are readily available and can be purchased by standard processes. They are unable to guarantee that your 1970 Ford Mustang will be repairable with NOS parts, as these are only available in limited quantities. To ensure your classic car is covered completely for any damage is to purchase stated value insurance. Stated value insurance allows you to set a price to the value of your car, and in the case of a claim you can be sure that your car is covered for damages up to that amount. This is ideal for rare vehicles or cars that are of special value.

Please Make sure you understand the importance of finding the right insurance company for your vehicle. Sites like Classic Car Insurance Reviews is a great place to start your research. Find out what's the best choice for your needs before you take to the streets this car show season.