Why are Vintage Cars Have Expensive Auto Insurance in Texas
Reader’s Question:
My name is Martin. I’ve lived in Amarillo, TX for 57 years. I own a Citroën Traction Avant. Of course, I never really use it. But my question is: Why is the auto insurance premium rate so expensive when we vintage car owners take care of our cars really well?
Martin
Amarillo, TX
True, Martin, vintage car owners are fiercely protective of their car and take care of their vintage car really well. However, the auto insurance companies will not just look at the way you take care of your car. They will take into consideration, since they’re going to insure the car, the cost of repairing the car and the maintenance of its parts. Vintage car owners seldom drive their car around Amarillo, TX. They would only do so for automobile fairs or exhibitions. The concern here is that a minor dent or damage to a vintage car like your Citroën Traction Avant, for example, is so costly compared to modern expensive cars. Moreover, car parts store for vintage cars are not easy to find, and that is the primary reason why the parts are so expensive in the first place. Although the internet has made vintage car parts acquisition easier, it is still not enough to allay the concerns of auto insurance companies. And you really need to insure your car even if you don’t use it so much. The fact that the car is functional and you drive it once in a while to go to car shows mean that your Citroën Traction Avant can cause damage to other people and properties.
Is There a Grace Period for Car Insurance Payment in North Dakota?
Reader’s Question:
I just recently purchased car insurance in Bismarck, North Dakota. I am just wondering on how the payment works. If let’s say I failed to pay the premium on the date it’s supposed to be paid like on its due date, will I be given a grace period? Like some number of days before it is terminated? Or will my auto insurance policy be terminated right away?
Thaddeus
Bismarck, ND
Auto insurance policies are not like cable bills that gave you the chance to pay after the due date. It does not give you a certain period of time before it gets terminated. So with this, the answer to your question is that unfortunately there is no grace period given to policyholders.
According to the North Dakota Insurance Department, if the payment for the car insurance premium is not received by the insurer on the due date or the date included on the car insurance bill, the car insurance policy is terminated automatically. However, the good news is that there are some auto insurance companies that give a policyholder the so called “grace period”. However, if I were in your position, I would not rely on that “chance”. Getting a car insurance policy terminated because of non-payment is never a good thing to have on your credit history.
For more information about auto insurance termination consult with your car insurance agent in Bismarck, North Dakota or ask the ND Insurance Department.
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