Have you ever considered starting a historic car collection? Or maybe you want to rebuild an old Mustang you’ve had your eye on? Whether you are new to historic cars or you have some experience, they do have some distinct differences from modern cars in regards to care and handling. Historic cars have special needs when it comes to insurance, but why? Let’s look at what classic and antique cars are, and why they deserve a special insurance policy.
What is Historic?
What is considered a historic car? Cars that are between ten and twenty-four years old are considered a classic car, providing they have “historic interest”. These types of cars would be more unique and desirable vehicles, such as high-end vehicles or muscle cars. Antique cars, on the other hand, are more than twenty-five years old and have historic value. Antique cars can be anything from a ford pick up from the 1940s to a Mercedes-Benz from the 1970s.
Why Do I Need Special Insurance?
But why do these cars need different insurance than a more modern car? The biggest reason antique and classic cars have different insurance policies is that they appreciate in value over time. Regular car insurance accounts for the fact that over time your modern car will depreciate in value, but historic cars actually become more valuable as time goes on.
These cars do have to meet some special requirements to obtain historic car insurance, however. Classic and antique cars have to be well maintained or restored in order to qualify, ensuring they haven’t lost their value. Additionally, historic cars must be stored in an enclosed area such as a garage, and they must not be used on a regular basis.
What Policy is Best?
Different historic car policies have different advantages and disadvantages so it is important to speak with someone who is knowledgeable before choosing a policy. What kind of policy you have should depend on the value of your car as well as your intended use of it. Working with a professional is the best way to find the perfect policy for you.
If you have a historic car or are considering purchasing one, call us at Freedom Insurance today to discuss what coverage options you have. We are experts on auto insurance in Maryland and can help you find the perfect coverage for your car. When you have an investment in a historic car you want to make sure you are covered, so give us a call today!