Classic car insurance is a type of nonstandard insurance. Allegiance Insurance Agency in Richardson, TX offers classic car insurance. If you are wondering if classic car insurance is right for you, check out these facts.
How Classic Car Insurance Differs from Standard Car Insurance
Standard car insurance policies will normally cover the cash value of the vehicle. This means it will cover what it would cost you to replace the vehicle. As time goes on, the car depreciates in value. As it depreciates the amount that the policy will cover decreases.
Classic cars are usually insured for an agreed-upon value. This means they are covered for an amount agreed upon by you and the insurance company. Classic cars often appreciate in value with time. The agreed-upon value can stay the same or be renegotiated when it’s time to renew your policy.
Vehicle Requirements for Classic Car Insurance
A car must be at least 15 years old before it can before it can be considered a classic car. Some states require the car to be at least 25 years old. In some cases, cars that are newer can be insured with classic car insurance. However, the car must be very rare or exotic to qualify.
It must not be the car you drive every day. Many insurance companies place limits on how many miles can be driven in the car in a year.
Classic cars must be parked in a secure location. A garage is often suitable, but some people choose to utilize a classic car storage facility for extra security and protection.
At Allegiance Insurance Agency in Richardson, TX, we are happy to offer classic car insurance. Contact us today to see if classic car insurance is right for your needs.