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Making a choice of a kit car insurance company for your specialty car can be a hard thing to do. The auto insurance industry gives you conflicting information about policies and coverage. Specialty insurance coverage can be had for a very reduced rate over a daily driver insurance policy, but you need to understand its limitations. It pays to do your research to make sure you’re getting the best value available.

There are several important points you need to review before picking an insurance company:

1. How many miles do I plan on driving each year?
2. What’s my acceptable risk in the case of a claim?
3. Do I want to drive my classic car every day?
4. How difficult is it to find parts in the case of a repair?
5. Do I need a local agent?

Allowable Mileage is an important point for collector vehicle insurance companies. They offer insurance coverage for your specialty car at a reduced rate because they assume that your usage is restricted. The average classic car insurance company allows for a cap of 2,500 miles per year driving for their insurance plans. The restricted driving means a limited amount of exposure for the insurance company. Some companies, such as Grundy, offer unrestricted driving privileges but impose other limitations, such as no driving to work or daily driving uses.

Classic Cars Are Risky To Cover

Standard insurance coverage typically pays for repairs based on the industry standard prices established for your vehicle. This rate assumes the parts are readily available and can be purchased by standard processes. They are unable to guarantee that your 1970 ‘Cuda AAR will be repairable with NOS parts, as these are only available in limited quantities. To guarantee your collector car is covered to the full extent of any damage is to purchase stated value insurance. Stated value insurance allows you to set a price to the value of your car, and in the case of a claim you can be sure that your vehicle is covered for damages up to that amount. This is ideal for limited production vehicles or cars that are of special value.

Don’t Drive Your Rare Camaro To Work

Insurance companies that cover specialty car typically ensure that you have another vehicle to drive on a daily basis. They do this because they don’t want you driving your collector car to work every day. This is because they mitigate their risk by limiting your mileage. Some companies give you a clear limit to how many miles you can drive. Others simply have rough guidelines.

Rare Cars Are Expensive To Insure

Rare cars can be expensive to repair because of the cost of the replacement parts. Standard insurance policies will not cover sourcing original New Old Stock (NOS) parts for a specialty car. They’ll only use generic replacement parts. This may effect the value of the vehicle when it comes to resale value.

Make sure you understand the importance of finding the right insurance company for your vehicle. Sites like Classic Car Insurance and Specialty Car Insurance Tips are great places to start your research. Find out what’s the best choice for your needs before you take to the streets this car show season.