Classic car insurance policies generally include the common coverage that is required by state law and found in most standard car insurance policies. Specialized classic car policies also have coverage that is specifically for older vehicles, though. Here are some of the important coverage that these policies offer.
Agreed Value Protection
Many car insurance policies offer comprehensive and collision coverage, which are two protections that typically cover any damage that the insured vehicle sustains. Comprehensive usually covers damage occurring in non-accident incidents, and collision usually covers damage occurring in accidents that involve two or more vehicles.
The types of incidents that are covered by comprehensive and collision coverage will be the same regardless of whether the coverage is in a standard or classic car insurance policy. The amount of coverage that's provided is often different, however.
Standard car insurance policies normally provide stated value protection for these types of coverage. Stated value protection limits the amount that a policy will pay to the car's fair market value.
Classic car insurance policies normally offer agreed value protection for the coverage. Agreed value protection insures vehicles for a predetermined amount, which is set at the time of the policy's purchase. This amount can be more than the car would sell for. If replacing your car's customizations would cost more than the car's value, agreed value gives more protection.
Flexible Usage Allowance
A flexible usage allowance extends coverage to non-driving activities. While such activities could be anything outlined within a policy, one of the most common activities that the allowance covers is showing the car. Classic car insurance policies frequently offer this allowance as an optional feature.
If you regularly (or periodically) showcase your classic car at auto shows, a flexible usage allowance will ensure that your car is protected against damage that could occur during the show. Standard auto coverage might not cover show-related damage, because this is outside the normal use of a vehicle. Normal use is often restricted to driving and stowing (parking).
Guaranteed Flatbed Towing
Many car insurance policies offer emergency roadside assistance as an optional add-on. Unless otherwise stated, the towing that's included with this assistance is done by whatever tow truck is the cheapest and most readily available.
A classic car insurance policy's emergency roadside assistance likely includes guaranteed flatbed towing. This guarantee ensures that a flatbed tow truck—which carries the entire car on its back—will be used to tow your classic car should it become disabled.
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