Unlike insuring a standard vehicle, buying insurance for a classic car can be a bit more problematic, so it is a good idea to research the types of policies available and learn about the restrictions they commonly include. You must first ascertain whether your car qualifies under the classification of ‘classic’. Not every insurer will agree on the definition of a classic car, so it is important for you to talk to your agent to be sure that the company will consider your vehicle a classic car. It is common for classic vehicles to be permitted on a standard auto insurance policy, although it is likely that insurers will charge higher premiums for this privilege. Also, you will not benefit from what is the biggest advantage of buying specialist insurance, which is the agreed value clause (or the minimum amount that will be paid to you should your car be stolen or involved in an accident or stolen).
Mainstream insurers will look at current market prices to determine how much to pay you in the event of you making a claim. Deciding on the market value of a classic car is a rather intricate issue, and that is where the difficulty arises. In many cases, the insurer will end up undervaluing your motor, and if they do so you will be forced to take that amount, even if you feel that it is unfair. When it comes to classic cars, the value of a single car model can differ by 50% or as much as 500%, as the market for these types of vehicles is highly price sensitive. Even if your car is a limited edition vehicle, is in mint condition or has a provenance, it is nearly impossible for you to get the full value for it if you do not have an agreed value clause. Remember that most insurance companies, especially mainstream ones, will look to pay you as little as they possibly can.
If you want to have an agreed value clause included in your classic car insurance policy, you will probably have to follow some rigid insurance guidelines. For example, these policies often have an annual mileage cap, designed for classic car owners who infrequently drive their cars. Other restrictions might include adding security measures and limiting the number of classic car shows that you can take your vehicle to. The more rare and desirable your car is, the more you will have to pay, however, due to the restrictions often put in place, classic car insurance policies tend to be relatively cheap. The most important thing to keep in mind is the agreed value clause, and you should be willing to pay higher premiums in order to get an agreed value inserted into your policy that you are happy with.