Contrary to many beliefs, hot rod insurance is not very expensive compared to regular auto insurance. Many wannabe hot rod owners cringe at the thought of insurance on a street rod, but if your driving record is fairly clean it will probably be cheaper than insurance on your daily driving vehicle. This is because you are not using it as your main mode of transportation. You have to have a daily driving vehicle other than your hot rod, but that vehicle DOES NOT have to be insured by the same insurance company insuring your hot rod. Just be ready to prove you have a daily driving vehicle. You most likely will be "babying" or protecting your hot rod better, meaning less of a chance for something to happen to it. And, if you live in the northern states where half the year there is snow or bad weather, you will probably only be able to drive your vehicles for a few months, and the rest of the time it will be garaged. Because of this, it is not unheard of to have an insurance policy for $300-$400 per year. Not too shabby...
Before contacting the insurance agent, you must determine the value of your hot rod. The purchase price is the first place to start, and if you made any modifications or repairs you will want to include the receipts into the price. Labor and parts should count towards the value, since it was paid. Some hot rods were built by famous or popular builders, and this can also raise the value of the street rod. Even parts not yet on the hot rod can be insured, as long as you have the receipts and proof you have the parts. If the addition of these parts add value to the hot rod, there is no reason why it shouldn't be insured. If your garage or storage burns down and the parts are destroyed, you are still out the money. This can be done under an "agreed Value" insurance policy.
Hot rods should ONLY be insured under an “Agreed Value” policy. This type of insurance policy lets you and the insurance agency “agree” on a value of the car, and the policy does not depreciate the value of the car. You may be approached with a “Stated Value” policy, and you DO NOT want this. This policy depreciates the value of the car over time. You and the insurance agency need to “agree” on a value, and it should stay at that value or appreciate in value. Some policies will raise the value a determined percentage quarterly or yearly to cover the increase in value of your car. If the value does not increase automatically, you will want to annually check your coverage with your insurance agent.
To get great rates on hot rod insurance, a few requirements are required by the insurance agency. First of all, they limit the amount driven by the owner. Generally it is 2500 miles a year or 250 miles a month. This can be raised with a small increase in premiums with most insurance companies. Another requirement is a locked storage area for your hot rod, preferably a garage. Some hot rod insurance quotes can be lowered with an alarm on the garage, and even lower with a sprinkler or fire suppressant system in the garage. With some hot rod values nearing $100,000 a fire suppressant system is probably small change compared to the investment you have in the hot rod and the possible loss if destroyed. Age restrictions are also put into hot rod insurance requirements, and generally you need to be at least 25 years old if not 30. Lastly, the hot rod insurance company will want proof of ownership of a daily driver vehicle. They are insuring the hot rod with the expectations that it will be driven recreationally, and not to work or the shopping mall where it will sit in a parking lot for hours at a time.
Whether you are shopping for your first hot rod or looking for lower hot rod insurance premiums, don’t fret contacting a collector car insurance agency to get a quote on a street rod. Knowing the approximate value of the car is all you really need to get a ballpark figure of what you will have to pay.