Classic Car Insurance: What You Need to Know

Classic car insurance, often referred to as collector car insurance, is designed specifically for vehicles that stand out on the road—those that catch the eye at car shows, parades, and, indeed, just driving down the street. Whether you’re cruising in a beautiful 1950s Cadillac convertible or restoring a WWII Army Jeep, classic car insurance is essential to safeguard your unique vehicle.

Understanding Classic Car Insurance

Classic car insurance is not just another type of auto insurance; it offers specialized coverage tailored to the unique needs of vintage and collectible vehicles, typically valued well above their original purchase price. Unlike standard policies, which often cover only a car’s depreciated value, classic car insurance can cover the full appreciated value of your vehicle, providing peace of mind and financial protection.

Unique Features of Classic Car Insurance

One of the defining features of classic car insurance is the way it calculates coverage. Instead of assessing the “actual cash value,” which factors in depreciation, classic car insurance policies use an “agreed value” model. This means that when you purchase the policy, you and the insurer agree on the car’s value. As your vehicle’s value increases, you can adjust the coverage amount accordingly.

However, to keep premiums reasonable, classic car insurance typically includes certain restrictions:

• Limited Use: Policies often limit driving to weekends, car shows, or club events, and exclude using the vehicle as a daily driver.
• Secure Storage Requirements: Insurers generally require that classic cars be stored in a locked garage, although some may permit covered storage options.
• Driver Eligibility: Coverage is usually available only for experienced drivers with clean driving records, often requiring policyholders to own a standard vehicle for everyday use.

What Types of Vehicles Are Covered?

The term “classic car” can encompass a broad range of vehicles. According to the Insurance Information Institute (Triple-I), various vehicles might qualify, including:

• Antique vehicles and vintage cars over 25 years old
• Hot rods and muscle cars
• Luxury and exotic vehicles
• Vintage military vehicles and classic trucks
• Classic motorcycles
• Some classic car replicas

Coverage Overview

Classic car insurance typically includes many features similar to standard auto insurance:

• Liability Coverage: Protects against bodily injury and property damage you may cause to others.
• Uninsured/Underinsured Motorist Coverage: Covers your injuries if involved in an accident with a motorist who lacks sufficient insurance.
• Personal Injury Protection (PIP): Covers medical expenses for you and your passengers, regardless of who is at fault.
• Collision and Comprehensive Insurance: Collision coverage pays for damages resulting from an accident, while comprehensive covers theft and non-collision events like vandalism or natural disasters.

Specialty Features

Classic car insurance often includes additional features attractive to collectors:

• Towing and Roadside Assistance: Support in case of breakdowns.
• Trip Interruption Coverage: Covers hotel costs if your vehicle breaks down while traveling.
• Spare Parts Coverage: Provides protection for parts and tools related to the vehicle.
• Coverage for Vehicles Undergoing Restoration: Many insurers cover cars that are not yet fully restored.

Comparison with Standard Auto Insurance

Here are the key differences between classic car insurance and standard auto insurance:

• Cost: Classic car insurance is generally less expensive. For example, Hagerty states that their premiums average 27% lower than those of typical auto policies, partly because of the restricted driving and secure storage requirements.
• Agreed Value vs. Actual Cash Value: Classic policies protect the car’s full market value instead of its depreciated worth.
• Specific Usage Restrictions: Standard policies allow for everyday use, while classic car insurance restricts vehicle use to certain occasions.

Tips for Obtaining Classic Car Insurance

To secure the best deal on classic car insurance, consider these strategies:

1. Keep it Classic: Ensure your vehicle meets the insurer’s criteria for classic car coverage—maintaining its value and condition.
2. Comparison Shopping: Explore different policies, focusing on mileage limits, coverage options, and restoration permits.
3. Evaluate Customer Service: Speak with other classic car owners about their experiences with insurers to gauge customer service quality.
4. Determine Agreed Value: Narrow down options based on the insurance coverages you desire and obtain quotes to agree on a vehicle value.

Conclusion

Classic car insurance is a vital investment for anyone passionate about their vintage vehicles. Understanding its unique aspects, like agreed value policies, usage restrictions, and additional coverages, ensures you can protect your cherished collection effectively. Whether you’re on the hunt for the perfect policy or simply learning more about your options, classic car insurance is essential in navigating the world of collectible vehicles.