Investing in a Hot Rod? Here’s What You Need to Know

Having the right auto insurance for your vehicle is always a good investment. However, you should choose a policy that’s right for the type of vehicle you own.

For those that own a specialized vehicle, such as a hot rod, you may need a more than a basic car insurance plan. Rather, you’ll need a policy that reflects the value of the vehicle, how you use it, and the risks you have through owning it. Hot rods tend to need coverage that differs from one driver to the next.

Antique and Classic Car Insurance

In many situations, hot rods fall under antique and classic car insurance, but not always.

Insurers consider any vehicle over 25 years old to be an antique. Classic vehicles range in age from 19 to 24 years old. In both cases, these vehicles can be in original or restored condition. Hot rods often are in this category alongside muscle cars, exotics, replicas, and kit cars.

Modified Vehicle Coverage

For those who own a vehicle that has had significant modifications to it, your insurance need also differ. These modifications are common to hot rods. Such vehicles may have chrome, or include flamed, lowered, chopped, or channeled changes. The goal is to ensure your auto insurance covers the vehicle in its current state.

Hot rod vehicles are generally considered those vehicles manufactured prior to 1949 where there has been changes to the body of the vehicle. These may include changes to the full body, the chassis, the engine suspension and interior.

What to Consider When Choosing Hot Rod Auto Insurance

Keeping these things in mind, shop for the right type of hot rod auto insurance. Take into consideration the following:

• How often is the vehicle used? If it sits in the garage, it needs less insurance than if you drive it daily.

• What is the vehicle’s appraised value? This may be the hardest question to ask because hot rod value isn’t always clear.

• Do you want replacement or actual value coverage? Replacement coverage replaces the vehicle for you as close as possible. Actual value pays you the vehicle’s current worth. This may be less than the actual price of a replacement car.

Work closely with your car insurance provider to get the right policy in place on your hot rod. Doing so helps you know your investment is safe and well protected from most risks.