Classic Car Insurance
Unfortunately for regular car owners, depreciation causes cars to lose value as they age. As a result, older vehicles do not require comprehensive coverage and are less expensive to insure. Classic cars, on the other hand, appreciate in value as they age and require specialized insurance to meet their various needs. Learn what classic car insurance is and what a classic car is.
Which Vehicles Are Classified as Classic?
Classic car insurance is a type of insurance designed specifically for classic, antique, or vintage automobiles. While the definition of a classic car varies, most are over 25 to 30 years old. There are, however, some exceptions to this age limit. For example, if the value of a car exceeds its original selling price, it may be considered a classic car even if it is less than 25 years old. Classic vehicles include the following:
Luxury or exotic cars
Vintage military vehicles
Is my car eligible for classic car insurance?
Other requirements must be met in addition to your car's age and value before you qualify for classic car insurance. While different carriers have different requirements, classic car owners must usually meet the following criteria in order to obtain coverage:
Use is restricted. Most classic car insurance policies do not cover daily activities like commuting or running errands. In this case, your policy may include mileage limits and proof that your classic vehicle is rarely used outside of your garage. Some policies will require you to have a regular car as your primary mode of transportation.
Meetups and car shows. While your insurer may restrict the use of your car outside of special events, car shows and meetups are usually covered by your policy. However, not every insurer provides this coverage, so you'd need to get specialized coverage for car shows and other events. If you own a classic car and travel to shows and meetups, check with your agent to see if your policy includes any travel restrictions that would interfere with your hobby.
Storage on an annual basis. Because your classic car isn't your primary mode of transportation, insurers expect you to keep it safely stored in a garage or storage unit when not in use.
A clean driving record. While you won't be driving your classic car very often, insurance companies have the right to refuse coverage to anyone with a poor driving record.
What Factors Influence Classic Car Insurance Prices?
Some aspects of classic car insurance are similar to those of regular insurance, such as property damage and bodily injury liability damage, but there are some significant differences in coverage.
Your Classic Car's Value
Unlike regular car insurance, which values your vehicle at its current market value, classic cars are one-of-a-kind and have no set value. You and your coverage provider will agree on a number to determine the value of your classic vehicle and, as a result, how much your insurance will cost. If your classic car is damaged, your insurance company will pay up to the agreed-upon amount. You can also change your policy later if the value of your car increases as it ages.
Transportation and specialized repairs
Repairing classic cars can be costly because they frequently require special order or rare parts. A classic car insurance policy will typically cover these repairs and compensate you for their true value, even if they are more expensive than repairing a standard car. Any spare parts you require, such as new wheels, transmissions, or engine parts, may also be covered. If you need to transport your classic car without driving it, your insurer will usually cover the towing costs.
If you need coverage for your classic or regular car, please contact us.