Classic Auto Insurance: What You Need To Know

Classic car insurance is a special type of insurance that offers coverage for classic, vintage, antique, or collectible cars. It provides protection for vehicles that are typically older, well-maintained, and driven infrequently for leisure or hobby purposes. The key difference between classic and regular car insurance is that classic car insurance is based on an agreed value, taking into account the car's unique characteristics and potential appreciation in value over time. This type of insurance also offers specialized services and coverages, such as roadside assistance, auto show medical reimbursement, and spare parts coverage. However, it may come with certain limitations, such as mileage restrictions and eligibility criteria based on the vehicle's age, usage, and storage conditions.

Classic car insurance covers property damage and bodily injury

Classic car insurance provides coverage for property damage and bodily injury. This means that if you are in an accident with your classic car, your insurance will cover the cost of repairs or replacements for any damage caused to someone else's property, as well as any medical costs incurred by others due to bodily injury. This includes emergency care, hospital fees, follow-up visits, and medical equipment like crutches. It is important to note that classic car insurance does not cover daily drivers and is meant for older, collectible vehicles that are driven occasionally.

Classic car insurance also provides liability coverage, which is required by law in most states. Liability coverage helps pay for injuries or damage caused to others as a result of an accident. This includes medical expenses, such as hospital stays and rehabilitation, as well as property damage, such as repairs to another vehicle or objects that were hit. In the unfortunate event of a fatality, liability coverage can also help cover funeral costs.

When it comes to bodily injury liability coverage, most states have minimum requirements that need to be met. These requirements are usually set as dollar amounts, such as "$25,000 bodily injury liability per person" or "$50,000 bodily injury liability per accident". It is important to review the specific requirements for your state to ensure you have adequate coverage.

In addition to liability coverage, classic car insurance also provides comprehensive and collision coverage. Comprehensive coverage protects your classic car from damages caused by events other than a collision, such as fire, theft, or vandalism. On the other hand, collision coverage takes care of damages resulting from physical contact with another vehicle or object, like a tree or guardrail. Both types of coverage are essential to protecting your investment in your classic car.

Overall, classic car insurance provides valuable protection for collectible vehicles and their owners. By understanding what is covered, including property damage and bodily injury, you can feel confident that your classic car is properly insured.

Classic cars are insured for an agreed value

Classic car insurance is designed to protect collectible vehicles through liability, comprehensive, collision, and other specialised coverages. Antique cars often maintain or increase in value, so classic car insurance typically covers the car up to an agreed value. This is because classic cars can appreciate in value, especially when restored or customised, and regular car insurance might not provide as much coverage.

Classic car insurance works similarly to a regular auto policy, with the benefit of having coverage for the vehicle's agreed value and its specifications, such as usage and storage. The agreed value is the value that both the owner and the insurer agree the car is worth, with supporting documentation. This is important because if there is a covered total loss, the owner will receive the full value of their vehicle, minus any deductible.

When insuring a classic car, it is important to keep in mind that the agreed value should be an accurate representation of the car's worth. Lowering the agreed value to save money on insurance may seem tempting, but it can lead to financial disaster if the car is involved in an accident. The parts and labour to repair a classic car can be very expensive, and if the repairs cost only a fraction of the insured value, the car could be declared a total loss.

Classic car insurance providers typically insist on some form of co-insurance threshold to prevent customers from lowballing the value of their car. It is also important to keep the agreed value up to date with market value. If market value goes up, the agreed value should also be raised to match it.

Overall, classic car insurance provides valuable protection for collectible vehicles, ensuring that they are covered for their full value in the event of a total loss.

Classic car insurance covers original parts

Classic car insurance is designed for collectible vehicles that are not used as daily drivers. These vehicles are often cherished possessions used selectively, resulting in lower annual mileage. This type of insurance protects your collectible vehicle through liability, comprehensive, collision, and other specialized coverages.

Classic car insurance covers your vehicle for its agreed-upon value, which is determined by the owner and the insurer. This value is typically higher than the actual cash value of a regular vehicle as classic cars can appreciate in value, especially when restored or customized.

One of the benefits of classic car insurance is that it covers the cost of original parts to repair your vehicle if it is damaged in a covered incident. This is in contrast to regular auto insurance, which may use non-original, aftermarket parts for repairs.

When it comes to classic car insurance, companies like Hagerty offer original replacement parts coverage. They provide stock original replacement parts when possible and have specialists who can locate rare or hard-to-find components. This original replacement parts coverage is typically included at no extra cost with your classic or vintage car insurance policy.

GEICO's classic car insurance also includes up to $500 in coverage for spare parts, with the option to add additional coverage for an extra premium. This allows you to restore your antique car with the help of a classic car insurance policy.

By insuring your classic car, you can rest assured that you will have access to the original parts needed to maintain its authenticity and value.

Classic car insurance is for secondary vehicles

Classic car insurance is designed for secondary vehicles. It is not meant to cover a car that is used for everyday use. If your classic or collector car is your primary ride, you'll need to cover it with a standard auto insurance policy.

Classic car insurance is for vehicles that are parked in a safe place, used as an extra car, and not your daily vehicle. They are typically defined as vehicles that hold or appreciate in value and are used primarily for pleasure, rather than getting you from point A to point B every day. Classic cars are considered collectible when there is enough historical interest to make them worth preserving and restoring.

Classic car insurance protects your collectible vehicle through liability, comprehensive, collision, and other specialized coverages. Antique cars often maintain or increase in value, so classic car insurance typically covers yours up to an agreed value; regular car insurance might not provide as much coverage.

Classic car insurance differs from regular auto insurance in several key ways. Classic car insurance is built specifically for classic cars and includes more specialized coverages. It covers the vehicle's agreed-upon value, whereas regular auto insurance covers the vehicle for its actual cash value, which factors in depreciation. Classic car insurance is also meant for older, collectible vehicles that are only driven occasionally, such as to and from car shows or on weekend drives. Many classic car insurers also require their customers to store their classics in a safe place, like a garage or barn, so they are protected from the elements.

Classic car insurance is cheaper than standard insurance

Classic car insurance is a type of insurance specifically designed for classic cars. Classic cars are often considered vehicles that are at least 10 years old and have historical interest, but different insurers have their own rules for what they classify as a classic car.

Secondly, classic cars are well-maintained and securely stored in garages, reducing the likelihood of theft or damage. Classic car owners tend to be older and more experienced drivers, which also contributes to lower insurance costs.

Classic car insurance provides coverage for property damage, bodily injury, liability, comprehensive, collision, and other specialized coverages. It is important to note that classic car insurance is designed for secondary vehicles and not meant to cover a car used for everyday driving. To qualify for classic car insurance, the vehicle must be stored in a safe place, such as a private garage, and cannot be used as a daily driver.

Frequently asked questions