How to insure a car you rarely drive

Whether you’re a full-scale classic car collector or simply keep your “baby” under the protection of a cover 350 days of the year, you should not insure a vehicle used for pleasure driving with standard auto coverage.

Here’s what you need to know about purchasing the right policy for a car that rarely sees the road.

Mileage requirements

Insurance companies universally provide discounted rates on cars that are rarely driven – but not every carrier uses the same metrics to determine which cars qualify and which don’t. Given that an insurer can request an odometer reading in the event of an accident, it’s important to buy a policy that leaves plenty of leeway so that you don’t accidentally surpass your maximum mileage. Common limits to qualify are 2,500 or 5,000 miles per annum.

Major carriers are not always the best fit

As a general rule, the major car insurance companies only insure luxury cars from mainstream brands. For example: Lexus, Audi, BMW, Mercedes-Benz and Cadillac.

The major providers don’t always sell the most owner-friendly policies for classic cars. The maximum payout can be less than the true value of the vehicle and repair work can be restricted to authorized repair centers. Racecars are almost always penalized by major providers regardless of whether you plan to race them.

This isn’t to say you should never insure a luxury car with a major carrier. Just be sure to compare quotes with a specialty insurer first.

Policies often come with stipulations

While exotic or collector car insurance policies provide several benefits to the auto owner, coverage is generally contingent on several qualifications.

Double-check your policy to see if any of these common stipulations are listed and shop around if need be:

• Age restrictions: To reduce risk, most specialty insurers require drivers be 25 years of age with at least 5 years’ driving experience. In some cases, the minimum age is 30.
• Clean driving record: Too many traffic infractions or at-fault accidents can disqualify you.
• 2^nd vehicle: Some policies may require that you own a 2^nd vehicle as proof the collector car is not your daily transportation.
• Storage requirements: You may be asked to provide photographs of where the vehicle will be stored when not in use to show that it is secure. Anti-theft devices may be required.

Do your due diligence

Purchasing coverage for your pleasure driving vehicle doesn’t have to be complicated but it does require a basic understanding of how the policy will differ from the one you have on your everyday vehicle.

Instead of spending a lot of time speaking to insurance firms directly, enlist the help of an insurance advisor who can recommend the best policy to suit your needs. John B Wright can help you with all your auto insurance questions.