Orlando Harmon
Classic car insurance is a necessity for any vintage vehicle owner. This type of insurance offers tailored coverage for your unique set of wheels, with policies designed to protect your investment and reflect the car's value. Unlike standard auto insurance, classic car insurance recognises that your vintage vehicle is likely to appreciate in value and is used primarily for pleasure, rather than everyday transport. This means that classic car insurance is often cheaper than regular car insurance, as these vehicles are generally driven less frequently and stored securely, reducing the risk of accidents and theft. To qualify for classic car insurance, your vehicle must be well-maintained, used infrequently, and stored in a safe location, such as a locked garage. So, if you're the proud owner of a vintage vehicle, classic car insurance is the best way to protect your prized possession.
| Characteristics | Values |
|---|---|
| Age of Vehicle | Typically, a classic car is defined as a vehicle that is at least 25 model years old. However, some companies consider cars between 10 and 24 years old as classics. |
| Usage | Classic cars are used for exhibitions, club activities, parades, car shows, and occasional pleasure driving, not for daily transportation. |
| Storage | The vehicle must be stored in an enclosed, locked garage or storage unit when not in use. |
| Vehicle Condition | The vehicle must be well-maintained, in good or excellent condition, and not used as a daily driver. |
| Insurance Coverage | Classic car insurance provides similar coverage to a regular auto insurance policy, including liability, collision, comprehensive, and uninsured motorist coverage. |
| Agreed Value | The insurer and the owner agree on the value of the vehicle, which is paid out in the event of a total loss. |
| Spare Parts Coverage | Some companies offer spare parts coverage, which reimburses the cost of spare parts for the classic car. |
| Roadside Assistance | Some classic car insurance policies include roadside assistance, such as towing and flat tire changes. |
| Discounts | Some companies offer discounts for bundling policies, insuring multiple vehicles, or having additional security measures. |
What You'll Learn
Classic car insurance requirements
Firstly, your vehicle must meet the age criteria to be considered a classic car, which is typically between 10 and 25 years old, but can be older in some cases. Additionally, your car should be used primarily for pleasure or hobby purposes, such as exhibitions, club activities, and occasional leisure driving, rather than daily transportation. It's important to note that classic car insurance is intended for secondary cars, not primary vehicles.
Storage requirements are also important for classic car insurance. Most companies require that your vehicle is stored in an enclosed, locked garage or storage unit when not in use. Some insurers may also specify that you must have another vehicle for daily use.
Furthermore, most insurance companies will require that your classic car is well-maintained, in good condition, and not used as a commercial vehicle. Some insurers may also have requirements regarding your driving record, with excessive speeding violations or reckless driving records potentially impacting your eligibility.
It's important to note that eligibility requirements can vary, so it's always best to consult with an insurance agent to determine the specific requirements for your vehicle and location.
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Classic car insurance costs
Classic car insurance is usually much cheaper than standard insurance. This is because classic cars are generally well-maintained, not driven as often, and their owners are typically safer drivers. Classic car insurance policies assume that drivers use their heritage vehicles less often than they would a modern car.
However, the cost of your classic car insurance will depend on your personal circumstances and the type of vehicle you drive. The higher the value of your car, the more the policy will cost. To determine the value of your car, you can weigh factors like age, condition, and type of car, and agree on a valuation with your insurance provider. The amount you are willing to pay as a deductible will also affect your costs—a higher deductible will result in a lower premium.
You can also take steps to reduce the cost of your classic car insurance. For example, storing your car in a secure garage or storage facility will make it less likely to be stolen. Additionally, keeping your annual mileage low can help lower your premium. Installing a tracker and immobiliser can also make your car easier to recover if it is stolen, which may result in lower insurance costs.
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Classic car insurance providers
Classic car insurance is similar to traditional auto insurance in that it provides standard coverages, such as liability, collision, and comprehensive. However, classic car insurance has its own set of eligibility requirements and specialty coverage options.
Some of the companies that offer classic car insurance include:
Hagerty
Hagerty is a national provider of specialty insurance, offering insurance for classic vehicles in all 50 states. It also offers motorsport, business, and classic boat insurance. Its classic vehicle products include coverage for cars older than 1980, modified vehicles, tractors, scooters, and more. Hagerty also offers a guaranteed value coverage option, which means that in the event of a total loss, you will receive the full insured amount of the vehicle, including all sales taxes and with no depreciation.
American Modern
American Modern is a specialty insurance company offering collector car insurance, among other property and vehicle insurance products. Its coverage options include muscle cars, classic cars, race cars, Cobra replicas, fire engines, and more. When insuring your car with American Modern Insurance, you and the agent agree on its value, and insure it for that amount. This agreed value prevents you from losing money if the market value of the vehicle decreases after you activate your policy.
State Farm
State Farm offers car insurance for antique automobiles over 24 years of age and classic cars between 10 and 24 years of age. You must drive your vehicle on a limited basis and use it only for recreational driving, shows, parades, or similar events. State Farm also offers up to $500 of coverage for the vehicle's spare parts.
Farmers
Farmers offers insurance products for collectible vehicles, including coverage for damages from a total loss or when you park it at an event, and special coverages when taking the vehicle outside its coverage area, such as out of the country for a car show. Farmers' optional spare parts coverage limits cost-free spare parts replacement to $750, which is higher than State Farm.
American Collectors
American Collectors offers classic vehicle insurance to owners with at least five years of licensed driving experience, a clean driving record, and a classic vehicle in good condition. It also offers coverage for other vehicle types, such as classic trucks, exotic cars, and antique motorcycles, though coverage eligibility requirements vary. American Collectors also offers coverage options allowing classic vehicle owners to drive up to 7,500 miles per year.
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Classic car insurance coverage
Classic car insurance policies typically offer similar coverage to a regular auto insurance policy, including liability coverage, uninsured and underinsured motorist coverage, and medical coverage. However, the primary difference is the coverage provided for your vehicle under collision and comprehensive coverages, which are based on the agreed value of your vehicle. This amount is agreed upon between you and the insurer and is usually reviewed upon policy renewal.
Classic car insurance may also include coverage for spare parts, roadside assistance, and towing. Additionally, some companies offer flexible mileage plans, allowing you to choose from unlimited mileage or plans ranging from 1,000 to 7,500 miles for pleasure use.
To qualify for classic car insurance, your vehicle must meet certain criteria. It should be at least 25 model years old, although some companies may have different age requirements. The vehicle must also be used only for exhibitions, club activities, and occasional pleasure driving, not as your primary mode of transportation. Proper storage is also essential, with most companies requiring the car to be kept in an enclosed, locked garage or storage unit when not in use.
When choosing a classic car insurance policy, it is important to consider the coverage features you require, such as evacuation expense coverage or restoration coverage. Comparing quotes from multiple companies can help you find the best price and ensure your classic car is adequately protected.
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Classic car insurance discounts
Classic car insurance is a type of insurance for vehicles that are considered classic, antique, or vintage. The cost of classic car insurance is typically much lower than standard auto insurance, but the insured amount is often higher.
Limited Usage and Mileage
Classic car insurance providers require that the vehicle is not used as a daily driver and is only for pleasure or leisure use. This limited usage helps keep insurance costs low. Some providers also specify the number of kilometres that can be driven, with annual limits in place.
Good Driving Record
Most classic car insurance providers require a clean driving record with no major problems or penalties in a specified number of years, usually three. Additionally, a minimum of ten years of driving experience is often necessary to qualify for classic car insurance.
Safe Storage
Insurers may offer discounts if the classic car is stored securely when not in use. This could include keeping the vehicle in a locked garage or storage unit, reducing the risk of damage or theft.
Bundling Policies
Some insurance companies offer discounts when you bundle your classic car insurance with other types of insurance, such as home or regular auto insurance. By combining policies, you can often save money on your overall insurance costs.
Agreed Value Coverage
Classic car insurance providers may offer a guaranteed value or agreed value coverage, where the insurer agrees to a fair value for the classic car in advance. This ensures that, in the event of a total loss, the insured receives the stated value, preventing depreciation and providing peace of mind.
Multi-Car Discounts
If you own multiple classic or antique vehicles, some insurance providers offer discounts for insuring more than one car with them. This can be a great way to save money while still getting specialized coverage for your collection.
By following these tips and shopping around for quotes, classic car owners can find affordable insurance options that provide the necessary coverage for their cherished vehicles.
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Frequently asked questions
Classic car insurance is a contract between you and an insurance company that provides specialised coverage for a classic or antique car. It is similar to a standard car insurance policy but has restrictions on what cars it will insure and how the cars can be used.
The definition of a classic car varies depending on the insurance company. Some companies define a classic car as a vehicle that is at least 10 years old, while others say it must be at least 25 years old. Other companies give a date range, for example, Hagerty defines classic cars as those from 1979 or earlier.
Classic car insurance is typically cheaper than regular car insurance because classic cars are generally used less and stored securely, reducing the chance of theft or damage. Classic car insurance also has restrictions on the use of the vehicle and often requires that it be stored in an enclosed, locked garage.
A classic car insurance policy provides many of the same coverages as a regular auto insurance policy, such as liability coverage, uninsured and underinsured motorist coverage, and medical coverages. The primary difference is the coverage provided for collision and comprehensive coverages, which are based on the agreed value of the vehicle.
