Most classic car insurance policies offer “agreed value” coverage. That means you and the insurance company would agree to insure your vehicle for a specific value. Then if there if there is a total loss to the vehicle, that is the amount the insurance company pays. This type of policy allows you to properly insure your classic car at the true market value.

Regular auto insurance policies cover your vehicle for the “actual cash value” at the time of the loss. The insured value of your vehicle depreciates as the vehicle ages. Because of that, normal car isn’t sufficient to cover the higher value of a classic car.

Benefits to classic car insurance over “regular” car insurance:

Lower Premiums

Classic car policies tend to be less expensive than regular auto policies.

One reason is because classic cars aren’t driven as often as daily use vehicles. Less time on the road means fewer chances of getting in an accident.

Guaranteed/Agreed Value

You can insure your classic car for its true value. This avoids depreciation impacting your payout if you have a claim.

Coverage and Claims Service Tailored to Classic Cars

Classic cars need specific parts and special treatment when it comes to repairs.

Companies that offer classic car insurance provide their employees with specialized training. They know what it takes to properly cover and repair your classic car. Their adjusters have resources to find the parts needed to repair your car quickly.

Unique coverages offered on a classic car policy:

Agreed Value

If you want your classic car insured for the actual value, no more, no less, then you need to get “agreed value” coverage.

Beware of policies that offer “stated value” coverage. Stated value often refers to the amount you claim the vehicle is worth. But that doesn’t mean the insurance company will pay you that amount if there is a claim.

If you have stated value coverage and file a claim, your insurance carrier will pay out one of two options. They’ll pay either the stated value on the policy or the depreciated value of the vehicle. Whichever is less.

This means that they’ll pay out the depreciated value of the vehicle, but not to exceed the amount listed on the policy.

Restoration Coverage

If you’re working on restoring your collector car, you can get specific coverage for that. That’s the best way to increase the insured value of the car as you make improvements.

Some companies offer restoration or “vehicle under construction” coverage. If you have that coverage, the insured value on your policy will increase each policy term. That accounts for the rising value of your classic car as you complete your project.

Traveling Collector Coverage

Many classic car companies will cover the expenses you may incur if your vehicle breaks down far from home. Those expenses can include the cost of food and lodging while the vehicle is being repaired.

That’s a useful coverage for classic car owners that travel to car shows or go on long car cruises.

Automobilia Coverage

Some classic car enthusiasts also collect various other items related to classic cars. Those might include: model cars, license plates, posters, signs, hood ornaments, gas pumps, etc.

A handful of classic car insurers offer coverage for those collectibles.

Spare Parts and Tools

If you own a classic car, you might also have some spare parts for the car that are not actually installed yet. On a regular car insurance policy those would not be covered.

Many classic car policies have the option to add coverage for spare parts. That way if your parts are lost or stolen, you can get them replaced through your classic car policy.

Common restrictions on a classic car policy:

Usage: Most classic car policies only allow pleasure use, like car shows or weekend drives. Vehicles used for commuting are generally ineligible for coverage on classic car policies.

Mileage: Each classic car insurer has their own guidelines, but most have an annual mileage restriction. Some are as low as 1,000 miles a year, up to 10,000 miles or even unlimited. It depends on the company and the coverage you choose.

Condition: Insurance companies expect classic cars to be in good condition. They need to show pride of ownership. The exception is if you are restoring the vehicle. But once the restoration is completed, the vehicle needs to be well-maintained.

Storage Location: Classic cars are often required to be kept in a private, locked garage to qualify for a classic car policy. Depending on the state and company, you might be able to get an exception for a carport or private driveway.

Driver Restrictions:

Age and Experience: Many companies require drivers to be a certain age (usually 25 or older) and have driving experience (usually at least 10 years).

Driving Record: Drivers with excessive tickets or claims aren’t generally eligible for classic car insurance. Most classic car companies are strict when it comes to driving records. They aren’t likely to insure a driver with more than 2 violations or accidents in the past 3-5 years.

If you have a classic or antique vehicle, you have likely spent a good amount of time and money restoring, maintaining and showing it. Don’t settle for insurance that doesn’t value your car the way that you do. You might even be able to get better coverage and save a little money by getting a classic car policy.

At Integrity First, we understand what it takes to insure a classic car. Give us a call to go over your options.

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Sources:

“Why should I insure through Hagerty?” Car Insurance Comparisons | 7 Reasons to Choose Hagerty, www.hagerty.com/Insurance/compare-to-daily-driver-insurance.

Green, Lisa, “How to Find the Best Classic Car Insurance.” NerdWallet, 20 May 2019, www.nerdwallet.com/blog/insurance/best-affordable-classic-car-insurance/.