Collecting classic cars is popular in New Hampshire. All around the state, there are hundreds of automobile shows, parades and performances during the sunny days of the spring, warm nights of summer, and cool weekends of autumn.
When it comes to protecting these antique automobiles, a common question that is often answered incorrectly is: “What type of insurance coverage do I need on my classic car?” Many drivers feel that adding their classic car onto their daily driver’s auto insurance policy is the answer, but that typically will not provide you with the proper coverage. Instead, it’s best to protect your collector car with classic car insurance, which takes the unique needs of the car collector into consideration.
The most important distinction between typical auto insurance and classic car insurance is in the valuation of the vehicles. Your typical auto insurance policy offers actual cash value (ACV) protection and, with standard depreciation rates, each year your car gets older, the less that value becomes. If after five years of driving, you experience a total loss with your five-year-old automobile, you would receive the original value of the automobile minus five full years of depreciation, which we all know is going to be a significant drop in value.
On the other hand, classic car insurance offers a type of valuation called agreed value. This type of valuation allows you and your insurance provider to agree upfront on the insured value of your classic car. Therefore, in the event of a loss, you are guaranteed to receive this agreed value; no lesser value or depreciation is considered.
Different providers have different criteria, but there are some similarities that are par for the course with classic car insurance. For example, an insurance provider is likely to require that the vehicle be stored in an enclosed area like a garage for protection from the weather. Likewise, an insurance company may also set a mileage restriction which states that the insured vehicle is not to be driven more than 2500 to 5000 miles per year, for example. With some insurance providers, you may have to be over 30 to be eligible to purchase classic car insurance. As a result of these limitations, car collectors typically enjoy premiums that are significantly lower than standard auto insurance rates.
Although New Hampshire does not require you to purchase insurance coverage for your vehicles in most cases, driving without adequate protection is risky; a single uninsured collision can place your home, financial accounts, and other property at risk. For this reason, whether it’s the antique automobile you’ve been dreaming of since your youth or the classic car of the future you have recently acquired for your collection, your classic car requires proper protection.
At Knapton, Reade & Woods Insurance Agency in Hillsborough, NH, we represent many reputable insurance companies and work with them to find the best rates and coverage options. If you’re starting to look for classic car insurance, you can rely on our agents to design affordable and a dependable coverage. To get a free quote for classic car insurance in New Hampshire, please call us today at 603-464-3422 or click here to submit our online quote form. For additional insurance resources and valuable safety tips, please read our blog, or visit us on Facebook, Twitter, LinkedIn and Google+.