It is often said that insurance is a necessary evil, purchased only because the law requires us to have such cover. There is an element of truth in this statement, but it is not the whole truth, or there would be no sales of comprehensive insurance cover at all, and house contents insurance would be unheard of.
Most thinking people, whilst complaining about the necessity to spend their hard won earnings on something which they hope never to have to benefit from, do understand, at least in part, the need for insurance cover for most of their property. On the basis that if disaster struck, they would not have the funds available to repair or replace that property so that life could continue much as before. The legal obligation to carry motor insurance for any vehicle used on a public highway is understood as a reasonable requirement. How would you feel, for instance, if as a result of an incident on the road (which need not be anything you could have avoided or prevented) someone was unable to continue to earn a living. You were responsible for the injury that caused it, and yet were unable to ensure that the person had sufficient to live on until he or she was in a position to earn again. Of course Third Party insurance is reasonable.
Beyond that, however, comes the comprehensive insurance taken out by the owner who has a vehicle of value which could cost substantial sums to repair in the event of an accident. This cover is common sense, but how does the Classic Car owner insure that in the event of a claim he or she will be able to either repair their car or receive for it, should the worst happen, the current value for the car?
Specialist Cover for Classic Cars
The standard motor premium is calculated by the Insurers on the basis that the value of the insured car is, in fact, slowly reducing, and when a total loss occurs, the settlement is offered on the basis of the condition of that vehicle, and the current market price. But market prices for Classic Cars are a totally different proposition, and, for that matter, so is the risk incurred by an owner of such a car whilst driving it. Be honest, which car do you drive ?hardest? – your company car, your everyday car, or your classic?
As a result of past experience certain Insurers have come to realise that there is a special market for insurance for Classic Cars, and have prepared cover accordingly. Your car is assessed according to its value, in the first instance, along with its age, and the number of miles you expect to drive during that year. Most classic car owners have some other form of transport for everyday use, and can restrict the mileage of their pride and joy, even as low as 1500 miles per year. All these factors are taken into account by the Insurers, along with compulsory restrictions on drivers, who must be specified on the policy, compulsory excesses and driving records, so special rates are offered. Dependant on the age and value of your car this can be as little as you might have to pay for Third Party Only insurance on the standard market, minimum premiums are around £50.00. For this, the Insurers agree the value of your car, and a total loss settlement is guaranteed to be the value of your car as stated in your policy. Just don’t forget to increase this value as the value of the car goes up!
American Muscle Cars
Yes, if you have one of these all American high powered, gas guzzling, wide wheeled, chrome fendered beasts then give us a call. The money you save on your insurance could easily go to pay your petrol bills !!
Something to think about………
Who would you prefer to have working on your side when it comes to the value of your classic car – someone who is heavily involved in the classic car movement and truly understands your needs or someone who just wants your money ?
I know what my answer is !!