From Vintage Volkswagens to Antique Bentleys, Insuring Your Prized-Ride
As a classic car owner you know that taking care of your car-baby requires TLC – but did you also know that your four-wheeled friend needs special insurance coverage?
There is no uniform definition of a “classic” car; the terms antique, vintage and classic are often used interchangeably. The Rhode Island Department of Motor Vehicles specifies just one designation—“antique,” which defines any motor vehicle more than twenty-five years old. Hotrods, exotic and luxury autos, muscle cars and classic trucks may also be designated as “classics.” Other unique vehicles may also qualify for special coverage including vintage military, classic motorcycles and antique tractors.
There are more factors to consider when selecting a policy for your classic than when insuring your family car. First, if your car’s value exceeds its’ original selling price, it may be considered “collectible.” If this is the case, you’ll want a policy designed specifically for collectables. Second, and this is good news, even though your classic may have a higher replacement value than your every day car the premium may be less for two reasons:
- Antique and collectable cars tend to spend more time in storage than on the road. Underwriters may stipulate that your classic is not be used for commuting and will verify that you also own a primary car for everyday use. Some policies may include mileage limitations and require your vehicle to be securely garaged. If you will only drive your classic to club events, parades or other special occasions your rate may be further reduced based on limited specific usage.
- Your “daily driver” vehicle is insured with the premise that it is depreciating in value as it ages. Conversely, your classic may appreciate in value—especially if you are restoring it. In this case, you will want to periodically adjust your coverage to keep pace with the vehicle’s value as it increases.
And as with all auto insurance, your driving record is a key rate-determining factor.
When considering policy options, the value of your vehicle must first be agreed upon with your insurer. The Rhode Island DMV uses the Cars of Particular Interest (or CPI) guide to assign value for excise tax purposes— this guide can provide a fair starting point. Once determined, the value will be specified in your policy and your car will be covered up to that amount without depreciation.
Look for a policy that gives you flexibility to have any insured repair to your car-baby performed at a restoration shop and/or by a specialist, even if the service rates are higher than at a traditional repair shop. In addition to standard provisions for property damage and bodily injury liability, antique automobile policies generally offer coverage for towing and spare parts to replace vehicle components.
At Dwyer Insurance, we have a number of options for all of your classics including yachts! Call us at 401-836-9629, we’ll customize the BEST coverage for your car-baby and boat-baby too!