Knowing the type of coverage you need for your car insurance will help you in a couple of ways. First, by knowing what you need before you search for auto insurance, you will be better able to avoid overspending and purchasing coverage that wouldn’t benefit you. Second, you will be better prepared to know what you want as part of your coverage so you are better protected. Having the right coverage for a classic or modified car can be a little more complicated than finding coverage for a typical vehicle. There are a few details in auto insurance that are different for classic and modified cars compared to auto insurance for typical vehicles. Knowing these differences can help get your vehicle better protection and get you the right coverage.
These cars — classic cars and modified cars — are usually a hobby for the owners. Whether the owner spends time upgrading their car with turbos or simply loves to cruise the streets in their mint condition ‘67 Chevy, this is a way for these owners to relax and do something that brings them happiness. Unlike most hobbies, a form of auto insurance or financial responsibility is needed for these vehicles so owners can legally drive them around and fully enjoy the experience. Not only is this necessary for legal reasons, but auto insurance for these types of vehicles should be a priority for any driver to ensure they can get the cash value of the car should it be stolen or damaged.
Car Insurance for Modified Cars
The premium cost to insure a modified car will vary, depending on what kind of modifications the owner has made to the car after purchase. Why would the cost of insurance rise? Many insurers believe that certain types of modifications decrease the driver’s ability to handle and control the car. This lack of control will probably lead to an accident, and the insurer will then be processing and paying for a claim that is made by the driver of the modified car. Auto insurance companies try to stay ahead of the costs they predict could happen, and to do so, they raise their rates for persons with a higher level of risk.
Many changes that are done to the body of a car have little to no impact on the cost of its insurance. Painting the car or putting stickers or decals on it will probably not push the insurer to raise the insurance price. New wheels may also not increase the premium, unless they are substantially more expensive than the stock wheels. There is also the chance that a new stereo would make the premium cost fluctuate. Keep in mind, if those new wheels or stereo (or any new part to the car) are damaged or stolen, the insurance company is to repair or replace all of it. This is why they might charge you more for different car parts that modify the body of the vehicle.
Once the driver begins to think about modifying anything under the hood of the car, the owner can expect auto insurance cost to rise. Most modifications that are done under the hood will increase the speed and horsepower of the car. It doesn’t take too much intelligence to know that if a car has more speed and power than before, the driver will take advantage of it and drive faster. Auto insurance companies also know this (or predict it), and also know statistically when people drive faster, they are breaking the speed limit and put themselves and others at risk of an accident. While insurance companies are happy to provide insurance to most drivers, they are hoping the driver will never have a need to file a claim.
While most modifications made to a car aren’t noticeable from the outside, some drivers may be tempted to omit telling their auto insurance company about their changes in an effort to save money on their insurance cost. This is your choice, but it is not recommended. If the car is in an accident and there is no record of the changes, upgrades, new parts, etc, the auto insurance company will not be obligated to replace those parts. They will only replace your vehicle at its cash value, which will not include the money that was spent to upgrade the car, and the driver will lose money.
Car Insurance for Classic Cars
Surprisingly to some, auto insurance for classic cars is often cheaper than it is for regular vehicles. This is mostly due to the fact that classic cars are not a driver’s primary source of transportation and are driven far less. Also, these cars are usually kept locked in a storage facility of some kind, which keeps it much safer (and cheaper to insure) than if it was stored on a driveway. Auto insurance companies know most owners of classic cars are very careful in the way they treat their car and drive their car, and insurers reward drivers of this by keeping their insurance costs low.
Classic cars can be insured by specialized insurance companies if their auto insurance company will not insure their classic car. Most auto insurance companies will insure most vehicles, so check with the primary auto insurance company first to see if any discounts can be arranged for having more than one vehicle on a policy. When choosing a policy, look for a coverage known as Agreed Value Coverage for the classic car. Once the auto insurance company has acknowledged your vehicle as a classic car, you can purchase agreed value coverage and in the event the car is totaled or damaged, the owner will be paid the entire value of the amount that was insured.
All cars need auto insurance, whether they are minivans, modified, or classic. Most owners want to know they will be compensated for their loss if their car is damaged or stolen, and auto insurance is really one of the only ways to guarantee that. Be wise and talk to your auto insurance agent or company to know your options of insuring your modified or classic car.
