While you are purchasing a car, keep in mind that different car types will dictate the kind of insurance you are buying. For instance, a regular car type has a different insurance cover from a vintage, heritage, or classic car.
Your selection of car insurance should also be inclusive of the type of car you own. When you purchase a vintage car, classic car insurance can provide you with a more cost effective plan. This is because most Australian insurers will assume that you will be doing fewer miles in your vehicle. Also, it is known for classic car owners to take good care of their cars and maintain them to high standards.
You should know that the insurance criterion depends on the age and value of the car. Different insurance companies have their classic car criteria; hence, the very reason why you need to shop around to compare different insurers.
As much as classic car policies share some aspects of traditional comprehensive car insurance, there are differences you need to know. For instance, the worthiness of a classic car can be more complex to assess than the value of a modern car. Making a mistake can leave you under-insured if you take up a policy that says it will pay out the market value car in case it is written off or stolen.
Also, note that many collectible and vintage cars increase in value over time if you keep it well maintained. This should make you ask your insurer if it is possible to review the valuation periodically.
The other factor is the cost of replacement parts for the car. Many modern vehicles have numerous companies selling their spare parts, making them reasonably standard. The replacement parts of classic cars can be hard to find, and they are usually expensive leading to some insurance companies placing limits on the cost parts.
