When you buy an insurance policy for your car, the insurance company determines your rate in part, based on the carâ€™s value. There are many factors that play a role in how much your premiums cost, but the carâ€™s value is certainly an important factor. If a part of the car is damaged, how much will a replacement part cost? If the car is stolen, how much will it cost to replace the entire car?
Those are expenses that will fall on the insurance company if you file a claim (unless your deductible is high enough to cover the loss or damage). Following that logic, newer, more expensive cars cost more to insure. As cars age and depreciate, their cost to insure can decrease. But, that is not true in all cases.
Sometimes, as a car ages, it can increase in value. Perhaps replacement parts become rare and expensive. Or, because the car is no longer commonly available (perhaps the model is discontinued) the overall value of the vehicle increases through the interests of collectors and enthusiasts. At this point, the car has become a classic.
Generally speaking, age is the biggest determining factor for a car to reach â€œclassicâ€ status â€“ with classic cars being 20-24 model-years old and antique cars being 25 or older. Owning a car that eventually becomes a classic is rare; cars often donâ€™t last that long, and/or they depreciate poorly. But, if it does happen, the carâ€™s value will only grow (as long as itâ€™s maintained).
Because of these increases in value, the coverage limits on a standard car insurance policy are no longer enough to reimburse you if you need to file a claim. Thatâ€™s where classic car insurance comes in. Classic car insurance recognizes the special needs of your vehicle and gives the coverage thatâ€™s appropriate for your car model.
Further, classic car insurance through AIS goes beyond old and antique vehicles. It can fully cover other vehicle types that normal insurance canâ€™t, such as high-performance exotics, custom motorcycles, race cars, and more. To find out if your vehicle should upgrade to classic car insurance, contact an AIS representative today.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.