There are several insurance companies that specialise in covering those one-of-a-kind vehicles that thousands of Australians own or purchase each and every day. For many people, owning a piece of history in the form of a classic car is a life changing event. However, before investing in a classic automobile, you should always search for insurance companies and rates that will protect your investment. In some situations, the cost of the classic car is minimal compared to the cost of protecting that investment. No classic car owner wants to drive around in a $50,000 car without proper insurance. Therefore, one must always search out for the best, yet least expensive option available.

Most insurance companies that offer this type of insurance on classic cars will work with the owners on policy options. However, there are certain rules, regulations, laws and guidelines that have to be followed. For example, many insurance companies set limits on the amount of worth of the vehicle, or the age of the vehicle; for example, your classic has to be at least 15 years of age and not valued at over $70,000. There are also special rates for those owners of multiple classic cars, mainly centring on the concept that when driving any one of the cars, the remainder will be setting. So in theory, only one of the actual cars is covered under the policy; the one that is on the road at any given time.

Although the depreciation value of a classic car usually never drops, and in most situations increases in value with time, they can still be rather an expensive investment. One must not only consider the costs of insurance, but the costs of parts, repairs, and modifications. For example, many insurance companies require classic cars to be equipped with modern day anti-theft systems, alarms or Immobiliser's. In many classic cars, owners have found that installing a mobile tracking device is deemed suitable by insurance companies, as well.

When applying for insurance to cover a classic car, you will be asked the exact same questions you may be asked when insuring any other car, however, your answers will most likely decide whether or not the company will consider you as a risk and therefore denying you coverage. It is important, however, to be as honest as possible when answering these questions. You will be asked to describe the vehicle and perhaps even be asked to bring the vehicle in for an inspection, if an alarm system is required by the insurer, you will also be asked to bring in an "immobiliser certificate". You must describe the amount that the vehicle will be used, who you would like to authorise to use the vehicle; in most cases, the insurance company will limit the user to either the owner or his or her spouse. You will be asked where the classic car will be kept or garaged, along with a list of alterations, modifications, and additional accessories. A detailed report involving you and any other authorised driver will be conducted; you will be asked questions regarding traffic offences, fines, penalties, convictions on motor offence violations, as well as any other criminal charges and convictions. You will be asked to explain any claims that you have filed regarding accidents, theft, or fire involving any vehicles under your possession. If you have had any insurance declined or cancelled, you will be asked to explain the situation in question, as well. Many insurance companies will also ask you personal questions regarding your health, for example, sight, hearing impairments, and regular prescription drugs that are prescribed to you.

In case of an unfortunate event, for example, a collision, a claim will need to be filed. Be prepared to submit proof of purchase, as well as proof of ownership of any accessories, alterations, and modifications. You should always retain receipts and other documents in relation to purchase and ownership in order to assist your insurance provider with any questions.

Often times, a classic car dealership will offer their clients insurance when purchasing a vehicle. Today, many car dealers offer their customers both financing for the car and also the ability to insure the car, a one-stop-shop, if you will.

When considering the options that you will need on classic car coverage, you may want to find a provider that offers you a choice of repairer if your car is involved in a collision. You can purchase insurance based upon an agreed value, rather than any type of market value; which often eliminates the need for any type of Gap insurance if the car is financed. As stated earlier, unlike many modern day car policies, modifications, alterations, and accessories are often covered if mentioned prior to buying the policy. Drivers also maintain the right to ask for salvage rights in case of collision. Another important point to inquire about regarding coverage is the ability to process claims in a fast and orderly fashion. Many times, car owners are in fear of asking questions regarding claim handling, they fear that these types of questions will send up red flags regarding their acceptance or non-acceptance of a policy, however, it is important to know what you are paying for, as well. Insurance companies provide a service to the public, not only to protect our investments, but to offer us satisfactory assistance when it comes to claims and the promptness of handling claims.

There are basically three important factors to remember when purchasing insurance for your classic car:

• Be sure to be honest with the insurance company when asked questions regarding the vehicle, your personal driving and criminal history and information regarding other authorised drivers.
• Be sure to discuss with the insurance provider the options that you feel are necessary to have listed on the policy, this includes coverage of modifications, accessories, and an agreed value of the vehicle.
• Be sure to read all the small print prior to signing any agreement, make sure that all the options that were discussed prior to the written agreement are listed, and lastly, notify your insurance provider during the policy if any of these conditions change.