5 Common Mistakes to Avoid When Insuring Your Classic Car….
Owning a classic car is more than just owning a vehicle—it’s about preserving history, passion, and value. But insuring a classic car comes with unique challenges, and common mistakes could leave you underprotected when you need it most. Here are five pitfalls to avoid to ensure your prized possession is adequately covered.
1. Underinsuring Your Classic Car
Classic cars are often insured based on market value, which can fall far short of their true worth. Market value policies might leave you with a payout that doesn’t reflect the rarity, condition, or recent restorations of your vehicle.
What to Do Instead: Choose an agreed value policy where you and the insurer agree on the car’s value upfront, or obtain an independent certified valuation to secure accurate coverage.
2. Overlooking Policy Details
Many classic car policies come with specific conditions—such as limited mileage, use restrictions (e.g., no daily driving), and storage requirements. Overlooking these details could void your policy or lead to denied claims.
What to Do Instead: Read the fine print and ensure you understand the limitations and expectations outlined in your policy.
3. Failing to Keep Accurate Documentation
Without proper documentation, proving your vehicle’s value during a claim can be difficult. Restoration work, modifications, or upgrades can significantly increase your car’s worth, but they need to be well-documented.
What to Do Instead: Keep an up-to-date file with photos, receipts, and maintenance logs to show the current condition and value of your car.
4. Using the Wrong Insurer
Not all insurers are equipped to handle the unique requirements of classic cars. Selecting a provider unfamiliar with this niche could mean lower payouts or slower resolutions.
What to Do Instead: Work with insurers or specialists with experience in classic car insurance. They understand the unique risks and value considerations involved.
5. Ignoring Additional Coverage Options
Many classic car policies don’t automatically cover spare parts, restoration work, or modifications. Overlooking these additional needs can result in costly surprises if something goes wrong.
What to Do Instead: Review your policy for coverage gaps and consider adding riders for specific needs like parts, modifications, or garage liability.
Conclusion
Properly insuring your classic car ensures peace of mind and financial protection. Avoiding these common mistakes is the first step in safeguarding your investment. At True Valuations, we specialise in providing certified valuations tailored for classic car insurance. Our expert appraisals help you secure the full value of your vehicle, ensuring you’re prepared for any situation.
Get in touch today to protect your classic car with confidence!
