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- What Is Classic Car Insurance?
In 2019, there were about 284.5 million registered cars in the United States. That number is expected to grow to a staggering 287.3 million by the end of 2020.
Of all vehicles roaming the United States roads, only a tiny fraction – about five million – are collector cars. That’s what makes classic cars so special. Many American car lovers dream of owning one for years.
If you’re fortunate enough to own a classic car, it’s only natural to want to protect your investment the best way you can. The first step is to get the best classic car insurance in the market for your vehicle.
As you’re going to find out when getting insurance on your classic car, the policy differs distinctly from standard car insurance policies.
In this post, we tell you all you need to know about classic car insurance. We’ll reveal how this type of insurance differs from the standard auto insurance and give you a few smart tips on getting the best insurance for your classic ride.
What Is Classic Car Insurance?
Classic car insurance is insurance coverage that’s provided specifically for collectible vehicles. The policy is tailored for the unique needs of owners of classic cars while offering less coverage in areas that commuter vehicles need.
Usually, the insurance provider decides whether or not a car meets the definition of a classic vehicle. However, classic cars are generally 25 years or older and have a current value that’s higher than what they were originally bought for. These vehicles also tend to require custom or rare spare parts.
Classic car insurance also includes antique and vintage cars, some of which can be over 45 years old.
How Does Conventional Auto Insurance Differ from Classic Car Insurance?
Ordinary car insurance, such as dump truck insurance, typically covers a vehicle up to its actual cash value at most. This value is equal to the vehicle’s replacement cost minus any depreciation.
On the other hand, classic car insurance covers your car for an agreed value that’s agreed between the insurance provider and the car’s owner. Usually, this amount is based on an expert’s appraisal, a respected car valuation guide, some form of documentation, or research by the underwriter.
As we hinted earlier, classic cars usually increase in value, especially with proper maintenance or professional restoration. And since these cars aren’t driven as frequently ordinary everyday vehicles, they don’t need much liability coverage. However, in case of repairs or restoration, these vehicles require skilled labor and special parts, which are major concerns for classic car insurers.
Tips for Choosing the Best Classic Car Insurance
Getting the best car insurance for a special car like yours can be an overwhelming undertaking. There are lots of options available in the market, and you need to be keen so you choose the best insurance policy for your vehicle. In this section, we share three smart tips that can help make the decision-making process easier for you:
1. Understand the Qualifications
Classic car insurance providers typically have a clear set of qualifications that both the vehicle and the owner need to meet before they can be covered under a classic car insurance policy. We discuss some of the common rules below:
For the Car
Most insurers require that the car be at least two decades old to be eligible for classic car coverage. In rare cases, some newer cars may be accepted as collector automobiles.
The next rule places a limit on the usage of the car. You can’t use a classic car to go to work every day. Many insurers place an annual mileage limit on your car.
The condition of the vehicle is a major factor too. To get the best classic car insurance policy, you need to make sure that your car is in good shape and keep it that way.
Insurers consider how you store your classic car too. It’s best to keep the vehicle in a specialized storage facility or lock it safely in a garage.
For the Driver
Everyone who has owned a classic car for a while will tell you that it’s a huge responsibility. Classic car insurers understand that, and they prefer working with clients they know they can trust to maintain their vehicles in the best condition possible. In other words, you need to be a low-risk car owner to get the best policy.
In America, classic car insurers require you to be 25 years or older to qualify for classic car insurance. The idea is that at such an age, you have enough driving experience to drive safely.
Insurers will also check your driving record, so you should strive to keep your record clean. Avoid DUIs, at-fault accidents, and other road infractions.
You’ll also need to show proof that you have an additional car for your daily use.
2. Know the Value of Your Car
The coverage your insurer is going to offer you depends on what the two of you mutually agree. Take your time to research the current value of your vehicle, so you negotiate from a position of strength.
Keep in mind that your classic car’s value will appreciate with time as you negotiate on an agreed value. The coverage thus needs to cover the total value of the car and should keep changing to reflect your car’s appreciation.
3. Seek the Help an Experienced Classic Car Insurance Agent
Find an insurance agent who specializes in classic car insurance. Such an agent will usually know the ins and outs of classic car insurance and can help you get the best policy for your specific needs.
Find out whether the agent has insured classic cars before. Ask for references and follow up to verify their reputation. You want to make sure that you’re working with someone who has your back all the way.
You Can Get the Best Insurance Coverage for Your Classic Car
Your classic car is a major collector’s investment. Whether you intend to take it for a ride occasionally or are restoring it for the next car show, you want to protect it by getting the best classic car insurance cover for it.
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