Unlike insuring a standard vehicle, buying insurance for a classic car can be a bit more problematic, so it is a good idea to research the types of policies available and learn about the restrictions they commonly include. You must first ascertain whether your car qualifies under the classification of ‘classic’. Not every insurer will agree on the definition of a classic car, so it is important for you to talk to your agent to be sure that the company will consider your vehicle a classic car. It is common for classic vehicles to be permitted on a standard auto insurance policy, although it is likely that insurers will charge higher premiums for this privilege. Also, you will not benefit from what is the biggest advantage of buying specialist insurance, which is the agreed value clause (or the minimum amount that will be paid to you should your car be stolen or involved in an accident or stolen).

Mainstream insurers will look at current market prices to determine how much to pay you in the event of you making a claim. Deciding on the market value of a classic car is a rather intricate issue, and that is where the difficulty arises. In many cases, the insurer will end up undervaluing your motor, and if they do so you will be forced to take that amount, even if you feel that it is unfair. When it comes to classic cars, the value of a single car model can differ by 50% or as much as 500%, as the market for these types of vehicles is highly price sensitive. If your car is in mint condition, is limited edition or has providence, then without an agreed value clause then there is pretty much no way that you will receive its full value. The objective of the majority of insurance companies, is to pay you the least amount that they can, and standard insurance companies are especially known for this.

In order to take out a classic car insurance policy that includes an agreed value clause, your insurer will ask you to adhere to strict insurance guidelines. A yearly mileage maximum is one such rule, as it is expected that a classic car will be driven less, and the classic car insurance policy will reflect this guideline. Other restrictions might include adding security measures and limiting the number of classic car shows that you can take your vehicle to. The more rare and desirable your car is, the more you will have to pay, however, due to the restrictions often put in place, classic car insurance policies tend to be relatively cheap. When shopping for a classic car insurance policy, having the agreed value clause included in your policy, should be a priority for you, and it is recommended that you live with a more expensive premium in order to have this clause included.