| Standard auto insurance policies provide | | | | take into account increasing values. |
| inadequate protection for classic cars because | | | | Other notable differences found on classic car |
| they are designed to protect a depreciating asset. | | | | insurance policies are the optional coverages. Many |
| For vehicles that maintain or appreciate in value, a | | | | companies offer benefits for spare parts, |
| classic car insurance policy is preferable. The | | | | memorabilia, tools, coverage for transport, etc. |
| primary differences between the standard car | | | | Companies generally allow the higher cost of |
| insurance policy and a classic car or specialty | | | | installing original equipment for repairs and utilizing a |
| vehicle insurance policy are the type of vehicle, | | | | garage facility of the policyholders choice. Also, |
| insurance limits, and qualifications for applicants. | | | | enhanced emergency roadside service is provided. |
| The most common vehicles for this type of | | | | The unique risk characteristics of the typical car |
| insurance are antiques and classics. Typically a car | | | | collector keep rates low. The average person is |
| is classified as antique when it is 25 years old or | | | | around age 50, college educated, a professional or |
| more, and a classic when it is 15 to 25 years old. | | | | technician or entrepreneur, has an excellent driving |
| Categories expand to include Hot rods and street | | | | record, owns multiple vehicles, and keeps the |
| rods, muscle cars, sports and exotics, modified | | | | collectible in the garage. A poor driving record or |
| vehicles, kit or replicas, low rider cars / trucks and | | | | teenage driver often disqualify an applicant for this |
| other less common vehicles. | | | | type of policy. |
| A standard insurance policy will value a car that | | | | Vehicles that maintain or appreciate in value are |
| has been totaled by actual cash value (ACV). This | | | | adequately protected by a classic or specialty car |
| method calculates for depreciation. Normal cars | | | | insurance policy. The contract will use agreed |
| depreciate rapidly making ACV sensible. Agreed | | | | value not actual cash value to determine physical |
| value insurance is more appropriate and regularly | | | | damage limits. Optional coverages catering to the |
| used in a classic car policy. This is where the | | | | car collector are available too. Policyholders enjoy |
| company and policyholder agree on the value of | | | | low rates due to favorable risk characteristics of |
| the vehicle and insurance limits are set accordingly. | | | | the group. |
| Periodic adjustments of the agreed amount can | | | | |