Run-of-the-mill auto insurance isn’t sufficient to keep your classic car protected against damage or loss. The best way to protect your new car is with a specialized classic car insurance policy. Different insurers have different definitions for classic cars. Specialized insurance is appropriate for antique and classic cars between 25 and 30 years old, hot rods and modified cars, exotic and luxury cars, muscle cars, and classic trucks.
What qualifies as a classic car?
An insurance provider will require a classic car to be more than 15 years old, driven less than 5,000 miles annually, used as a second car, and kept in mint condition. It doesn’t cost as much money to insure a classic car as a regular car, and you can earn discounts on your insurance premium. Qualifying for a lower premium means your classic car is a secondary vehicle kept in a secured storage unit, and that you are 25 or older.
NSW drivers are required to carry compulsory third party (CTP) insurance, known as a green slip, before registering a new car. Green slips and CTP insurance cover you in the event you cause an accident that injures or kills someone. Both insurances provide bare minimum coverage for bodily injuries resulting from an accident. It’s a good idea to purchase additional coverage in NSW, such as third-party property damage car insurance or comprehensive car insurance. iSelect.com.au helps you compare car insurance NSW from a range of insurance companies, so you can find the right coverage for your needs.
How do you qualify for classic car insurance?
Not all cars will meet insurers’ specialized classic car insurance qualifications. Insurance companies require that your classic car have limited use, and in some instances, they may require you to own a primary car for daily use. Exclusions to the limited use provision are traveling to car shows and auto club meetings. The best way to keep a classic car in mint condition is to store it in a secure storage unit when not in use. You will need to have a clean driving record to qualify for classic auto insurance.
Many classic car investors take their toys out for relaxing drives in the fresh air and sunlight. Taking a long drive is a great way to unwind and relax, especially if ocean views are part of the journey. YOH outlines several reasons why being near water makes us happy. Water serves as a natural gathering area that provides a great workout environment. Psychologists have found that proximity to water helps treat PTSD, anxiety, and other mental health disorders. Water can help lower breathing and heart rates and increase creativity once the mind is relaxed.
What does classic car insurance cover?
Classic car insurance offers similar coverage types to regular auto insurance policies. Liability auto insurance covers accidental damage and personal injuries you cause. Collision and comprehensive insurance cover damage to your own vehicle from a car accident, auto theft, vandalism, natural disasters, and falling objects. Uninsured motorist coverage pays for your medical bills in the event the at-fault party doesn’t have insurance.
Whether you need to use your insurance or not, having protection in place ensures you have enough money to cover unexpected expenses. The best time to lay the foundation for your financial future is in your 20’s. According to YOH, making wise investments in your 20s is the first step toward building wealth. Young people need to determine cash flow by calculating all monthly expenses and deducting them from their monthly income. Building a healthy income stream means not spending more than you earn in a paycheck.
It’s a good idea to purchase some form of home insurance, life insurance, and health care coverage. Build an emergency fund, and create a plan to pay down student loans and credit card debt. Take advantage of free money whenever possible. Most employers offer an employer match to retirement plan contributions, and quarterly bonuses are a great way to pad your retirement savings or investing account. Taking control of your finances at a young age is an important step in creating a comfortable long-term financial situation.
It is possible to get specialized auto insurance for your classic car if you meet the qualifications set by insurers.