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The following article was published in our article directory on January 2, 2013.
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Article Category: Automotive
Author Name: Caelan Cheesman
Different people buy cars for the different reasons. To some it is a necessity, to others a luxury and to a few others a hobby. Irrespective of the reason for buying a car, there is always the need to buy adequate insurance on the car. When buying insurance, car owners should endeavour to get the best deals and understanding the kind of car you have is paramount. For those who collect cars as a hobby, there are good policies for classic car insurance California.
Contrary to what many may expect, classic car insurance is cheaper than the traditional car insurance. The main reason for this is that these cars are owned by responsible adults and they are pampered. Given that insurance for collector cars will be cheaper, it will be a mistake to insure a classic car under a traditional insurance policy. Regrettably, this is what happens most often as car owners are only interested in having insurance cover for their cars.
In truth, it is very disadvantageous to the car owner to place a classic car under a traditional insurance policy. The basis for the high prices associated with modern cars is the idea that their value depreciates with time. On the other hand, the value of a classic car only increases with time. This means that if you placed you much valued collector car under a traditional insurance policy, you risk getting a depreciated value for it if something was to happen to it. While you may be wondering that a car that will have a higher replacement cost would attract a cheaper insurance rate, it is simply because of the reason that has been aforementioned. They are extremely pampered. The collector car insurance is based on the premise that the owner of the car values the car and will do all to protect it from harm. Also these cars are not driven often.
It may be tempting to want to know how much cheaper the insurance can be from a traditional one. The rates will vary with the different car insurance California companies but you are sure to get at least a 20% reduction. The difference in rates between companies is mainly due to the way the car is valued. While one company may only concentrate on the value of the car and its intended use, another company will be looking at many other factors. However, the low cost of the insurance also means that many restrictions apply.
Some insurance providers would not cover a car driven by younger drivers. Also it is important that the car is parked in a garage and not an open driveway. The number miles the car can be driven per year will be restricted. Different companies that that offer classic car insurance California will certainly have different restrictions. Since the insurance market for classic cars can be much specialised, it is important to be sure you are working with the right insurer. This will also ensure that you are getting the right price.
Keywords: classic car insurance california
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