Times are tight and in this economy, it is necessary to make every dollar count. If you’re a car enthusiast, chances are you are working on a project car. While tinkering with the old car may be theraputic and it has its own rewards, staying within your hobby budget has never been more difficult. Keeping your car insurance in good standing for your daily driver is paramount, but what about your project car? How can you justify maintaining car insurance on your vintage car, even with a second car discount?
If your project car is more than twenty-five years old, you don’t have to. As collector cars became more and more popular, car insurance for vintage cars also became more popular – and more affordable. There are many collector car insurance specialists, including Grundy Worldwide (www.grundy.com), American Collectors Insurance (www.americancollectorsins.com) and Hagerty (www.hagerty.com). These companies work independently, but are also affiliated with the companies that insure your daily driver. Hagerty, for example works in conjunction with Progressive, Esurance, and others. Collector car insurance rates are considerably lower, primarily because your collector is for limited use, is garaged and is not your only vehicle. For coverage, the owner must certify that the car will remain in his or her primary care, custody and control, and will be garaged at a certain location. Most policies also limit the amount of miles that can be driven per year – in most cases 2500 miles per year or less.
There are several major differences between insuring a daily driver and insuring a collector car. Your daily driver depreciates in value as the years pass, whereas your collector car retains its value and may in fact increase in value as it ages “gracefully.” Since your collector car is intended only to be used for a Sunday drive or to a show (and as we all know, occasionally to a mechanic), the premiums are substantially less than the premiums for your daily driver, and will include collision and comprehensive coverage, which you may or may not have on your daily driver. These rates are available because of the car is not being operated as often and the reduced risk is reflected in the premiums.
On a related subject, many states also will allow you to register a 25-year or older car with Historic or Antique license plates. In addition to the attention you get when driving a car with special plates, the states will also discount the registration costs for these plates, due to the limited operation of the vehicle. The same criteria that the collector car insurance companies examine when issuing the special insurance, is used by the motor vehicle department to issue Historic or Antique license plates. Check with your State’s motor vehicle department for additional information.
The gratification you get from tinkering and pampering with your vintage car is enhanced when the fact that you are actually saving money as well on your classic car insurance. Isn’t that what it’s all about in the first place?
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