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Insuring your classic car is definitely a good idea and, fortunately for the hobby, there is special collector car insurance that is much cheaper than the normal insurance on your everyday car.

The rates are cheaper simply because the insurance company recognizes that most of these cars are not going to be driven much and even when they are it will not be in adverse conditions. Insurance companies also recognize the pampering that most of these cars receive and that the drivers are extremely careful when driving them. Most policies require that you sign a waiver that you are not driving the car everyday and that it is being driven only to shows or cruise-ins.

Most insurance companies offer what is termed "agreed upon value." This simply means that you and the insurance company agree to what value the car will be insured for and that if it's stolen you will receive that amount. Some insurance companies limit the valued amount and will not go over that value for certain makes of cars - this prevents one from insuring a $20,000 car for $60,000.

It should be noted, however, that the amount of premium you pay is usually directly correlated to the amount of value placed on the car. Just about all insurance companies will at the very least require you to send a picture of the car to be insured so that there will be no hanky panky if a claim is ever filed. For this reason, if you ever make serious alterations to the appearance of your classic (such as a different color of paint) it is best to send the insurance company new photos so they can see that it's the same car and there won't be any problems when a claim is filed.

There are, in most cases, mileage limitations on classic car policies. This means that you are limited to the amount of miles in one year that you can drive the car. A typical policy written today limits you to 2,500 miles a year, although there are a few companies that are selling unlimited mileage policies. If unlimited mileage is important to you, please be aware that these type policies are usually more expensive.

People have often asked me how the insurance company can verify your mileage for the year and the answer is they really can't - it is more of an honor system. The company I am presently with does ask for you to submit your beginning and ending odometer reading every year.

The insurance company that you agree to put your coverage with should be one that you have thoroughly checked out and that you feel good about. Premiums for collector car insurance vary quite a bit so please be sure that you are comparing apples to apples and that the limits of coverage are identical or as close to identical as you can get them. Unfortunately, one doesn't really find out how good or terrible their coverage is until that first claim is filed.

It is always a good idea to check with other classic car owners about their experiences when they filed a claim. For instance, was the insurer easy to deal with and did they allow you to select the repair shop and the parts to be used or did they dictate to you the terms of the repair? The best advice is that you don't want to wait until that first claim to be shocked and/or surprised - it's too late then.

People often wonder what years and/or makes of cars qualify for classic car insurance and it can vary by insurance company. It would probably be safe to say that anything older than 30 years would qualify, but it does depend on what make and year of car it is. Cars younger than 30 years old can also qualify for collector car insurance, especially if it's an exotic type car such as a Ferrari or something like that. The bottom line is, check with the insurance company.

Bill Deaton of Fort Mill is the owner of B&D Business Services in Rock Hill and also a classic car enthusiast.

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