Classic car insurance gives owners of classic cars special insurance options and expert service that may not be available from a regular auto insurance company.
The most important part of a classic vehicle insurance policy is agreed value coverage. This means that you and your insurer agree just on the value of your car based on an appraisal. Many classic car insurance companies also have special coverage options for things like showing your car at car shows and repairing exotic cars.
What is insurance for classic cars?
There are a few services as well as features that make classic car insurance different from regular car insurance, but agreed value coverage is the most important one.
In an appropriate pricing policy, you and your insurance company agree on how much your car is worth, and that’s how great it’s insured for. This could range anywhere from $10,000 to $100,000 or more, depending on how much an appraiser thinks your classic car is worth.
This is different from how most cars are insured. If you have a car that is easy to find, your insurance company will figure out how much it is worth by looking at similar models and how much it will cost to fix it. In this way, a classic vehicle is insured more like a work of art than a regular car, since its value depends on how much people are willing to pay for it.
There are other advantages to classic car insurance
The other major benefit of classic auto insurance is that the companies focus on working with rare, collector, or antique cars. When you have a policy for a classic car, the agents, adjusters, and other staff you deal with will know more about how rare cars work and what a classic car owner needs.
Other types of specialized coverage are:
Cost of replacement went up: If your car’s value goes up more than what you agreed to pay for it, this coverage will pay the difference.
Towing services: Include only towing with a flatbed tow truck to keep the car from getting damaged on the way to the repair shop or back home.
Auto show reimbursement for medical care: In case someone gets hurt at a show or event where your car is on display.
No attendance is necessary: Covers your car while it is on display, like at a car show, when you are not there.
The disadvantages of a classic auto policy
Classic car insurance isn’t as good as buying a policy from a big insurance company because it’s made for cars that are rare or worth a lot. You won’t find these problems with every classic car insurance company, though, so make sure to compare what each one has to offer to find the best one for you.
Limits on mileage: Many classic car insurance companies will only let you drive your car a certain number of miles each month.
Reduced discounts: Many of the companies that offer insurance for classic cars are smaller and more specialized, so you might miss out on discounts for items like bundling policies, having a certain job, or using telematics devices.
Fewer options for coverage related to driving: Some types of coverage, like roadside assistance or elongated medical payments coverage, might not be available from classic car insurers that aren’t as big.
How to get insurance for a classic car
Classic car insurance isn’t made for cars you drive every day or regular cars like a new Toyota or Volkswagen. Most of the time, classic car insurance companies want the car to be unique in some way, like being old, expensive, or customized.
Most of the time, your car must be in at least one of the following groups:
- A minimum of 25 years old
- Modern muscle car
- Exotic
- Vehicle with changes
Types of classic cars
The advantages and disadvantages of classic car insurance for antique, exotic, custom, or historic vehicles are generally comparable, though the types of vehicles that are covered may differ by provider.
Classic automobile insurance
Many companies define a classic automobile as being 19 to 24 years old, restored, in good working condition, and worth more than the average value of other automobiles of the same make and model year; however, some insurers consider a vehicle of this description that is 10 years or older to be a classic automobile. The Classic Car Club of America considers vehicles produced between 1925 and 1948 to be classics.
Insurance for classic cars
Many companies use the term “antique” to describe something that is at least 25 years old and also in good working condition. Some states consider a car to be “antique” if it is at least 20 years old, but the Antique Automobile Club of America considers a car to be antique if it is at least 45 years old.
Changes to car insurance
Many companies define a collectible vehicle as one that has been changed a lot from its original engine, body, chassis, or interior. This can make the value go up or down, so many insurance companies won’t cover these kinds of cars.
Kit cars and exact copies
Defined as cars that are at least 24 years old and have parts that were made separately, or that are assembled copies of any motor vehicle that is at least 25 years old.
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