Alyssa Lane
If you own a classic car, you'll want to make sure it's insured. Classic car insurance is similar to regular car insurance but with some unique characteristics. For example, classic car insurance often includes agreed value coverage, tiered mileage plans, and spare parts coverage. The cost of classic car insurance is usually much cheaper than regular car insurance, as insurance providers expect classic car owners to drive their vehicles infrequently and keep them well-maintained. When it comes to eligibility, most insurance companies define a classic, antique, or vintage car as a collectible vehicle that is at least 25 years old. However, some companies, like American Collectors, have no minimum age requirement. It's important to shop around and compare quotes from different insurance providers to find the best coverage for your cherished collector vehicle.
| Characteristics | Values |
|---|---|
| Insurance type | Liability insurance, comprehensive coverage, collision coverage, uninsured motorist coverage, medical payments coverage, towing coverage, rental car coverage, classic car insurance |
| Factors affecting insurance cost | Age of the vehicle, level of insurance coverage, repair and replacement costs, whether the vehicle is leased, whether the vehicle is used for racing, number of miles driven per year, storage of the vehicle, driving record |
| Classic car insurance requirements | Vehicle is at least 25 years old, driver has a separate vehicle for regular use, clean driving record, no more than one at-fault accident or moving violation in the past three years, vehicle is stored in a locked and enclosed structure |
What You'll Learn
Classic car insurance is cheaper than regular car insurance
Classic car insurance is a specialised type of insurance for vehicles that are at least 10 years old and have some sort of historical significance. Classic car insurance is often cheaper than standard car insurance because classic cars are typically driven less and maintained better than ordinary cars, so they are considered low risk by insurance companies.
Classic car insurance costs $400 to $1,000 per year, on average, whereas a comparable policy for a regular car costs an average of $4,211 per year.
Classic car insurance policies are based on the agreed-upon value of the vehicle rather than the car's mileage, age, and safety features. The primary difference in a classic car insurance policy is the coverage it provides for your vehicle under collision and comprehensive coverages, which are based on the agreed value of your vehicle. This amount is agreed between the owner and the insurer and usually considers industry guidelines.
Classic car insurance companies have stricter requirements than standard insurers. For example, many companies require classic vehicles to be stored in enclosed and locked structures when not in use. Young drivers or those with recent at-fault accidents may struggle to find coverage from classic car insurance companies.
Classic car insurance also offers specialised coverage options, such as increased replacement cost, roadside assistance, auto show medical reimbursement, and spare parts coverage.
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Classic car insurance covers liability, uninsured motorist, and medical
Classic car insurance is a special type of insurance that provides coverage options and expert services for classic car owners. These options may not be available from a regular car insurance company. The most important feature of classic car insurance is the agreed value coverage, where the value of the car is determined through an appraisal.
In addition to these coverages, classic car insurance also offers increased replacement cost, roadside assistance, auto show medical reimbursement, spare parts coverage, and a cash settlement option. However, there are some drawbacks to classic car insurance, such as mileage limits and fewer discounts and coverage options compared to a policy from a mainstream company.
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Classic cars are defined as vehicles that hold or appreciate in value
Classic cars are often sought after by collectors and enthusiasts due to their potential for value appreciation over time. This potential is influenced by various factors, including the vehicle's rarity, historical significance, and aesthetic appeal. Additionally, a car with a notable racing history or celebrity ownership can enhance its collector value.
When it comes to investing in classic cars, it is important to consider the long-term nature of such an investment. The value of a classic car can depend on its brand, vintage, and overall condition. Some notable examples of classic cars that have appreciated in value include the 1966-1967 Pontiac GTO, the 1992-1995 Porsche 968, and the 2008-2015 Audi R8.
It is worth noting that investing in classic cars carries risks, including the potential for financial loss and the challenge of finding replacement parts for repairs. However, for those passionate about automotive history and willing to undertake the necessary research, classic cars can offer a unique and rewarding investment opportunity.
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Classic car insurance offers guaranteed value coverage
Classic car insurance is designed for vehicles that are not used as a primary means of transportation. This means that the car is only used occasionally for pleasure driving, exhibitions, tours, and similar trips.
The guaranteed value coverage is based on an agreement between the owner and the insurer on the value of the vehicle at the time the policy is written. This amount is usually reviewed upon policy renewal and typically considers industry guidelines.
In addition to guaranteed value coverage, classic car insurance policies often include other benefits such as towing coverage, repair shop of choice, and emergency lodging. These policies also offer flexible usage, allowing owners to take their vehicles to club functions, exhibitions, and tours without mileage restrictions.
Overall, classic car insurance provides specialized coverage tailored to the unique needs of classic and collector vehicles, ensuring that these prized possessions are adequately protected.
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Classic car insurance offers flexible usage
Hagerty, a classic car insurance provider, allows flexible usage with no fixed mileage limits. They offer 24/7 emergency roadside assistance for lockouts, battery jumps, and tire changes through their Hagerty Drivers Club. Additionally, they provide guaranteed value coverage, meaning you will receive the full insured amount of your vehicle with no depreciation in the event of a covered total loss.
GEICO also offers customizable classic car insurance coverage. Their policies are designed specifically for collector vehicles, addressing unique issues such as the difficulty of finding replacement parts.
When considering classic car insurance, it's important to note that different providers may have varying definitions of what constitutes a "classic car." For example, Hagerty defines classic cars as "fun-to-drive" vehicles that maintain or appreciate in value and are used primarily for pleasure rather than daily transportation. On the other hand, GEICO considers a vehicle to be classic if it is at least 25 model years older or falls into specific categories like new exotic cars or common antiques.
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Frequently asked questions
Classic car insurance is a type of insurance that covers vintage, antique, or collectible vehicles. It takes into account the unique issues that arise when a collector vehicle represents a significant financial investment, such as when replacement parts are hard to find. Classic car insurance typically offers lower premiums than regular insurance because it is understood that these cars are driven with greater caution. Additionally, classic car insurance provides "agreed value" coverage, meaning that in the event of a total loss, the owner receives the full insured amount of the vehicle with no depreciation.
The cost of insurance for an older car depends on various factors, including the level of insurance coverage, the presence of anti-theft devices, repair and replacement costs, and whether the owner opts for minimum coverage or full coverage.
To get the best insurance rate for an older car, consider the following:
- Equip your vehicle with anti-theft devices.
- Compare quotes from multiple insurance providers and pay attention to the coverage level offered.
- Consider repair and replacement costs and whether you need gap insurance.
- Increase your deductible to lower your monthly payments.
Some reputable companies that offer classic car insurance include:
- Hagerty Insurance
- American Collectors
- Safeco
- State Farm
- American Modern
