What is there not to love about a classic car and its eye-catchingly sleek curves, slick paint job, and sophisticated design? Their nostalgic appearance and driving experience offer an effortless respite into another time in history. Whether you own or drive an old classic of the ‘40s, powerful muscle car, or a restored 1960s camper van, you probably want to protect it at all costs.
Due to their unique features and nature, classic cars need different insurance than regular auto insurance. Classic car insurance is tailor-made for classic car collectors to cover their specific needs.
Insurance companies have different definitions for the classic car. Additionally, classic cars have several subcategories. In general, most classic cars are more than ten years old and used by a private owner on a regular basis. Cars used as collectors’ items and older than 26 years (or 45, depending on which source you consult) are considered antique cars, and cars built before the 1930s are deemed antique. Examples of classic and collectors’ cars include the 1969 Ford Mustang, 1961 Lincoln Continental, and 1974 Dodge Challenger.
Cars that fall under classic car insurance include muscle cars, modern modified vehicles, such as hot rods and lowriders, as well as vintage tractors and military vehicles.
You can find out more about classic cars, including the difference between classic, vintage, and antique cars here.
Typically, the insurance company will first assess the value of the car. They will employ several experts who will inspect the vehicle either in person or using the photographs you provide. They will also consult with the client to set a value that everyone finds accurate.
Classic cars often see a rapid rise in value. Thus, many insurers advise their customers to routinely assess the car to ensure an accurate representation of the vehicle’s worth. Such revaluation is possible under most classic car insurance policies.
For most items, their value depreciates over time. However, as mentioned above, the value of classic and collectors’ cars is more likely to increase over time or at least stay the same. Buying a classic car is truly an investment and needs proper insurance.
While some collectors only take their classic cars to shows and parades, others like to drive their cars at other times as well. Most classic car insurance policies will not dictate the number of miles you are allowed to drive as long as the car is not in daily use. All household members with a valid driver’s licence must own a separate vehicle for everyday driving. Motorcycles and public transportation do not usually count as regular-use vehicles. Otherwise, they do not qualify for classic car insurance.
Alongside disallowing daily use of the vehicle, insurance companies often have a range of other conditions that must be met to qualify for classic car insurance.
Secure storage is a common requirement, with the classic car needing to be stored in a locked garage when not in use. Driveways are generally not viewed as acceptable for classic cars. Fortunately, there is a range of other options to consider:
The insurance company may ask for details or photographs of the storage facility.
Classic car insurance can include several coverages. These are the most typical ones:
If your car is damaged, then many insurance companies provide an in-house team to deal with any classic vehicle repairs. They will let you choose who you want to work with for the repair, and can even assist with sourcing rare parts.
Despite the higher price of the vehicle, classic car insurance can have up to 43% lower premiums than standard auto insurance according to data collected by Hagerty in 2017. Some agencies offer zero-deductible policies alongside fully comprehensive and collision coverage. If you insure multiple vehicles, you can get a discount.
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