Classic car insurance policies have changed over a long period of about 25 years and the modern policy can be tailored to the specific needs of most classic car owners. For example, if you store your car more than you drive it, you may qualify for a significant discount in premium. However, if you use the vehicle for commuting purposes, there is still a practical classic car policy that can be purchased to meet your needs. You may also be able to purchase a policy that has no deductible. One of the most important features of a classic car policy is the valuation mechanism, which enables you to establish the value of your vehicle when the policy is written. This is typically done to avoid disputes over a claim involving classic cars that are typically unique and rare.
There are many categories of cars that can be insured under a classic car policy. Do you race? Perhaps your stock car or drag car can be insured under a classic car policy. If you are into street rods, hot rods or rat rods, those cars may qualify also. Antiques, exotic cars, kit cars and replicas are also all typically insured under a classic car policy.
Once the decision has been made to move to a classic car policy, the next important step is to determine what liability limits you require. Liability limits involve the coverage in your policy that pays others who are injured or who suffer property damage due to your negligence. In Colorado, there are minimum limits that you must maintain in order to operate the car. While the minimums are $25,000 per person for injuries, and $50,000 per accident in total, these minimums are inadequate for the average driver and much higher liability limits should be obtained for adequate financial protection.
Another liability component involves property damage liability. In Colorado this limit is set at $15,000 per occurrence. This minimum limit may also be inadequate considering the high values of vehicles driven today. A single accident involving a total loss to a new vehicle could leave you liable for tens of thousands of dollars in damages.
Another important coverage to consider is Uninsured/Underinsured motorist (UM/UIM) coverage which is designed to pay the policyholder for injury claims when involved in an accident caused by someone else who does not have enough insurance coverage. This coverage has to be offered to consumers by law, but you are not obligated to purchase it in Colorado. It is, however, highly recommended financial protection.
Be sure to deal with an experienced Colorado insurance agent who knows your needs with respect to classic car insurance, and who can provide you with the proper policy options. You should also take care to choose an auto insurance carrier that is highly rated by A.M. Best, with a rating of “A” or “A+”.
The Phoenix Insurance specializes in classic car insurance. We’re car fanatics and know exactly what it means to want to protect your passion. Give us a call, we can help protect what moves you.