5 Things to Know About Affordable Car Insurance and Hot Rods

For any true car lover, hot rods really get your motor running. However, these classic beauties aren’t cheap. Likewise, finding affordable car insurance on a hot rod isn’t easy. There is a way, however, that you can protect your hot rod without breaking the bank. Here’s what you should know:

1. Insure hot rods with a specialty program
2. Know what qualifications apply
3. Explore all specialty programs available
4. Know what restrictions are for specialty cars
5. Know your hot rod’s value

When you pour your heart and soul into building that hot rod of your dreams, you want to be sure it’s well protected. You need reliable, yet still affordable car insurance. Most hot rod owners use a standard insurance company for insuring their collector cars. What many don’t know is that they could be saving a great deal more with specialty programs.

How Do Specialty Programs Provide Affordable Car Insurance?

A hot rod is a collector or specialty car; not one you’ll likely use on a regular basis to run errands. Standard car insurance depreciates the value of collector cars as the value is lower for older vehicles.

A specialty program is a much more affordable car insurance program than a standard insurance policy. Since hot rods are not used as often as standard vehicles and drivers tend to take extra caution when driving, liability is much less. First, you and your hot rod must qualify for a specialty program. This includes:

• A clean driving record
• Proof that you have another vehicle for daily use
• Minimum of 5 years driving experience
• Secure and proper storage of the vehicle
• Limited mileage

Additionally, your car has to be considered a specialty or collector’s car to qualify. This means that in order to acquire affordable car insurance with a specialty program, your vehicle must meet an age requirement. Most vintage cars are classified as vehicles 25 years or older, but a vehicle of 15 years or older may be considered a modified classic. Additionally, a limit of 2,500 miles a year may be applied for hot rods. This is because these types of vehicles are primarily show cars used mostly in parades and car shows. Some companies don’t strictly limit the mileage upon proof that a separate vehicle is used daily.

Specialty programs may vary from program to program by:

• Level of service
• Rates
• Types of coverage
• Handling of claims

It’s wise to explore each one to find the best coverage with the most affordable car insurance available.

Types of Coverage

Finding affordable car insurance on a hot rod depends on the type of coverage provided. There are three forms of coverage available:

• Actual Cash Value
• Stated Value
• Agreed Value

Actual Cash Value or ACV is used mainly with standard insurance for everyday-use vehicles. It provides the cash value of the vehicle if a claim is made. Stated value is a little better than ACV as it permits you to state your vehicle’s value rather than predetermined by age of the vehicle. The problem with hot rods and collectibles is that it’s difficult to place a precise value due to modifications. As was previously mentioned, standard insurance depreciates the value of these types of vehicles; therefore, agreed value is preferred.

Agreed value is primarily used for specialty programs and offers the most affordable car insurance for hot rods. It assures the total value of the vehicle will be paid in the event of a total loss. This is why it’s important to know the approximate value of your hot rod. Hiring an appraiser and keeping track of receipts and purchases from modifications can determine your hot rod’s value. Enjoy your hot rod and insure it with affordable car insurance with specialty programs.