Classic car insurance is different from regular car insurance on the basis of, the type of coverage offered and the terms of claims. Classic car insurance in California has insurance laws and coverage options designed according to the state laws.
In California, classic car insurance can be applied for, only if the car is more than fifteen years old. The owner of the car must have held a driving license for more than ten years, and must also have at least one other car, for regular use. Further, it is mandatory for a classic car owner in California, to provide a garage to house the car, when not in use.
Also read: Leland West Tips for Evaluating Classic Car Insurance Companies
Regular car policies that are available are Actual Cash Value and Stated Value policies. Actual Cash value policies pay the insured the adjusted value of their cars in case of irreparable damage to the car. This adjusted cost is calculated by subtracting the depreciated value from the original value of the car. Stated Value policy is where the insurer pays “up to” a certain amount in case of a claim for total loss. Both these policies are unsuitable for classic cars, as their value does not depreciate but rather, appreciates.
Therefore, the type of insurance policy preferred by the California classic car owners is the ‘Agreed Value’ policy. Under this type of policy, in case of total loss, the insurer is liable to pay a sum that, the insurer and the insured agreed upon while drawing a contract.
There are also many driving restrictions, while purchasing classic car insurance. There are limits on mileage, as well as speed. The owner of the car is also not allowed to use it for daily errands or commuting as a regular car might be used.
Consider Leland West classic car insurance, aims at retaining the value of old cars by keeping them protected against possible potential damage and loss. Leland West Insurance has been offering specialty collector vehicle insurance for 20 years, and is one of the largest and most well-known collector car insurance companies.
If you want to find more about our services you can contact us at +1 559-431-8282.