Classics: Insurance And You

The definition of a classic car varies depending on who you ask. The Classic Car Club of America (CCCA) defines a classic car as any car manufactured between 1915 and 1948. However, some people use the term classic car as an umbrella term to refer to vintage, antique, or collector cars, even if they were manufactured after 1948. For insurance purposes, a classic car is generally considered to be one that is over 25 years old, has historical interest, and is not used for everyday driving.

Classic car insurance requirements

In addition to age, insurance companies may also consider other factors such as the car's usage, storage, and the driver's eligibility. For instance, most classic car insurance policies require that the vehicle is not used as a daily driver and has limited mileage. Some companies also require the car to be stored in a private garage or a locked facility when not in use.

When it comes to the driver's eligibility, some insurance companies may require a clean driving record for at least three to ten years, while others may have a minimum age limit of 25 for the main policyholder.

It is important to note that classic car insurance is typically designed for secondary vehicles and may not cover a car used for everyday use. As such, it is crucial to carefully review the requirements and restrictions of the specific insurance company before purchasing a classic car insurance policy.

• Age of the vehicle: The vehicle must be considered a classic by the insurance company, which typically means it is over 25 years old.
• Usage: The vehicle cannot be used for daily driving and may have mileage limitations.
• Storage: The vehicle must be stored securely in a private garage, pole barn, or locked facility when not in use.
• Driver eligibility: The driver must have a clean driving record and meet any age requirements set by the insurance company.
• Regular use vehicle: The policyholder must have access to another vehicle for daily driving.
• Condition of the vehicle: The vehicle must be in good condition and properly maintained.

Classic vs. traditional insurance

Classic car insurance is designed for vehicles that are considered classic or antique. The definition of a "classic car" varies depending on who you ask and which insurance company you go with. While the Classic Car Club of America (CCCA) defines a classic car as an automobile manufactured from 1915 to 1948, some people use the term more loosely to refer to vintage, antique, or collector cars manufactured after 1948. Insurance companies have their own definitions as well; for example, State Farm defines a classic car as one that is 10 or more years old and is a rarity or of historic interest, while The Hartford defines it as a car that is 10 or more years old and may be used regularly.

Classic car insurance policies differ from traditional auto insurance policies in several ways. Traditional auto insurance covers "daily drivers", which are cars driven more frequently than classic and collector vehicles. More frequent driving results in more accidents, which is why daily driver auto insurance premiums are generally much higher than those for collector vehicles. Traditional insurance is meant for cars that are driven regularly, such as to and from work or school, whereas classic car insurance is designed for older, collectible vehicles that are only driven occasionally, such as to car shows or on weekend pleasure drives.

Another difference between classic and traditional car insurance is the way they determine the value of the vehicle. Traditional auto insurance covers the vehicle for theft and physical damage up to its actual cash value, which factors in depreciation. In contrast, classic cars can appreciate in value over time, especially when restored or customized. Therefore, classic car insurance typically insures the vehicle for its agreed value, which is the value that the owner and the insurer agree upon based on supporting documentation.

Classic car insurance also tends to have more stringent requirements for vehicle usage, storage, and driver eligibility. Many classic car insurers require their customers to store their vehicles in a safe place, such as a garage or barn, and some even have mileage limits. In most states, only drivers without serious infractions in the last three years are eligible for coverage. Additionally, most classic car insurers require all drivers in the household to have a regular-use vehicle for daily driving, and the classic car cannot be used as the primary vehicle.

Overall, classic car insurance is designed for collectors and enthusiasts who own classic or antique vehicles and want specialized coverage that reflects the unique characteristics and value of their cars.

What classic vehicle insurance covers

Classic car insurance is a special type of policy that helps protect antique or classic cars. It can also protect other high-value vehicles such as muscle cars, hot rods, vintage military vehicles, and exotic or luxury vehicles.

Classic car insurance typically includes coverages similar to a standard car insurance policy, such as collision, comprehensive, property damage, and bodily injury liability. However, classic car insurance covers the vehicle for an amount agreed upon by the owner and the insurer. This is because classic cars can appreciate in value over time, whereas regular cars depreciate.

Classic car insurance also helps pay for specialized repairs or restoration if your classic car is damaged. These costs are often significantly higher than the cost of repairing a regular car. It can also help pay to replace classic parts like wheels and engine components, which can be difficult to find and expensive to buy out of pocket.

In addition to the standard coverage types, classic car insurance typically has some optional coverage types that you can tailor to your needs:

• Cherished salvage coverage: If your classic vehicle is totaled by a problem covered by the policy, you have the right to keep the salvaged car and still get a payout from the car insurance company (minus your deductible).
• Spare parts and automotive tools coverage: This covers spare parts and personal tools used to maintain or restore your classic car.
• Vehicle under construction coverage: If you're restoring a classic car, this provides periodic increases to coverage.
• Disabled vehicle coverage: This insurance type might include coverage for roadside assistance, which typically pays for towing and delivery of items like fuel or oil.
• Automobilia coverage: This coverage pays for certain collectible items, such as hood ornaments, vintage license plates, gas pumps, and station displays.

How classic car insurance is priced

Classic car insurance is usually much cheaper than regular car insurance. The typical annual premium for classic car insurance is between $200 and $1,000, while regular car insurance usually costs over $1,000 per year. This is because classic cars are driven less frequently, are better maintained, and are driven with more care, resulting in fewer claims.

Classic car insurance rates vary based on several factors, including the driver's location, driving history, and the vehicle's worth. Most insurance companies define a classic car as a collectible vehicle with limited production, exceptional quality, or historical significance. The vehicle must be at least 25 years old, although some companies may require it to be at least 20 years old with collectible value.

The cost of classic car insurance also depends on the type of coverage selected. Basic coverage includes bodily injury liability, property damage liability, comprehensive insurance, uninsured motorist coverage, and underinsured motorist coverage. Additional coverage options include agreed value coverage, tiered mileage plans, spare parts coverage, worldwide coverage, and multiline discounts.

When determining the premium amount for a classic car, insurance companies consider the agreed-upon value of the car, which is settled between the owner and the insurer based on the car's condition, age, and any improvements made. The age and driving history of the listed drivers on the policy also influence the final premium.

Overall, classic car insurance is priced lower than regular car insurance due to reduced usage, careful maintenance, and lower claim probabilities associated with classic cars.

How to get classic car insurance

Classic cars are typically defined as vehicles that hold or appreciate in value and are used primarily for pleasure, rather than everyday use. They are considered collectible due to their historical interest, rarity, limited production, exotic features, or other distinctive traits.

When it comes to insuring your classic car, there are a few steps you should take:

Determine Eligibility:

Firstly, you need to establish if your vehicle qualifies as a classic car for insurance purposes. The criteria for this can vary, but generally, a classic car is one that is at least 20-25 model years old. However, certain newer vehicles may still be eligible if they possess unique characteristics or are of special interest. These can include qualities like rarity, limited production, exotic features, historical significance, or modifications.

Understand the Requirements:

Classic car insurance providers typically have specific requirements that must be met. These can include:

• Limited Usage: Classic cars should be used primarily for pleasure or hobby purposes, such as club activities, exhibitions, parades, or occasional leisure driving. They should not be used for daily transportation or business purposes.
• Storage: Your classic car will need to be stored securely when not in use, typically in a private, enclosed, and locked structure like a garage. Some insurers may also accept other storage types, such as car hauling trailers or rental storage units.
• Condition: Your classic car should be well-maintained, reflecting its collector status. Some insurers may require the vehicle to be in excellent condition or actively undergoing restoration.
• Driving Record: A safe driving record is important, as insurers generally seek responsible drivers who align with the specific usage patterns of collector vehicles.

Research Providers and Policies:

Several insurance providers specialize in classic car insurance, including GEICO, State Farm, Hagerty, American Collectors Insurance, and Grundy. Research their policies, eligibility criteria, and requirements to find the one that best suits your needs.

Get a Quote:

Contact your chosen insurance provider to obtain a quote for your classic car. You will need to provide details about your vehicle, including its age, model, condition, and intended usage. You may also be able to obtain quotes from multiple providers to compare coverage and pricing.

Customize Your Policy:

Work with your chosen insurance provider to tailor your policy to your specific needs. This may include adding optional coverages, such as towing and roadside assistance, spare parts coverage, or emergency lodging. You may also need to specify your expected annual mileage based on your intended usage.

Finalize the Policy:

Once you are satisfied with the coverage and terms of the policy, finalize the details with your insurance provider. This will likely include agreeing on the value of your classic car, which will be used to determine the policy coverage and premium.

Remember, it is important to carefully review the terms and conditions of your classic car insurance policy to ensure you understand the coverages, limitations, and any applicable restrictions.

Frequently asked questions