Specialty Auto Insurance: What You Need To Know

Specialty auto insurance is a type of insurance that covers vehicles that are unique or require protection from unusual events. It is often required for vehicles that are more expensive, have higher repair costs, or are more likely to be stolen or broken into. This includes antique, luxury, classic, and customized cars, as well as vehicles used for specific purposes or during certain seasons. For example, snow plow trucks or ice cream trucks would need seasonal business auto policies, while farming equipment may be covered by a comprehensive farm and ranch insurance product. Specialty auto insurance can also apply to recreational vehicles such as ATVs, RVs, boats, and motorcycles.

Classic, antique, and luxury cars

Specialty auto insurance is designed for vehicles that are not driven frequently and require tailored coverage. Classic, antique, and luxury cars fall into this category, and there are several insurance providers that cater specifically to these types of vehicles.

Classic and antique cars are generally defined as vehicles that are at least 20 years old, while antique cars may also be classified as those that are 45 years or older. These cars are considered "special" due to their age, rarity, and unique characteristics. Classic car insurance policies typically offer similar coverages to standard auto insurance policies, including liability, collision, comprehensive, and uninsured motorist coverage. However, classic car insurance also includes additional benefits tailored to the needs of classic car owners.

One key feature of classic car insurance is Agreed Value coverage, where the insurance company and the customer agree on a specific value for the vehicle before any potential total loss incident occurs. This ensures that the customer receives an accurate payout reflecting the true value of the classic car in the event of a total loss. Classic car insurance policies may also offer built-in or optional coverages such as towing coverage, repair shop of choice, emergency lodging, and discounted salvage buyback options.

When insuring a classic, antique, or luxury car, it is important to consider the eligibility criteria set by insurance providers. These criteria may include age restrictions, locked garage requirements, occasional use provisions, and a well-maintained vehicle in good condition. Additionally, annual mileage limits are a significant factor in classic car insurance policies, with most companies offering flexible or unlimited mileage plans.

Some reputable insurance companies that specialize in classic, antique, and luxury car insurance include American Collectors, American Modern, Leland-West, Chubb, Hagerty, Condon Skelly, and Heacock. These companies offer various benefits, such as flexible mileage plans, restoration coverage, spare parts coverage, and discounts for extra vehicle security.

Seasonal vehicles

Seasonal auto insurance is not a standard policy option, and insurance companies do not offer seasonal policies. However, there are other options to consider. If you plan to store your vehicle, you can reduce your coverage to stored car insurance, or comprehensive-only coverage, which will protect your vehicle from theft, vandalism, fire, or weather damage. This is a good option if you don't plan to drive your vehicle for a period of time, as it lowers your rates while still providing some protection.

If you plan to drive your seasonal vehicle, you will need to ensure you have the proper coverage in place. Two to three weeks before you start driving your seasonal vehicle, you should contact your insurance provider to inform them. You will also need to renew your license plate sticker and obtain an up-to-date appraisal of your vehicle to ensure you have adequate coverage in the event of a loss.

Specialty insurance companies offer classic and antique vehicle insurance, which can provide a discounted premium of up to 54% compared to a regular auto policy. These policies have restrictions, including vehicle age, storage conditions, and the driver's record.

If you only plan to use your seasonal vehicle for a few days, you can reinstate your coverage for that period. However, failing to turn your coverage back on can result in a ticket or fine if you are pulled over, and any damage to your vehicle during this time may not be covered.

Limited-use vehicles

Limited-use auto insurance is similar to classic or historical auto insurance in that it protects vehicles that are infrequently driven. However, unlike classic car insurance, limited-use vehicles do not have to meet certain age requirements. This type of insurance is designed to offer financial protection for vehicles that are not used regularly, and as a result, the premiums for limited-use auto insurance may be lower compared to standard auto insurance policies.

When considering limited-use auto insurance, it is essential to review the terms and conditions of the policy carefully. Some policies may include mileage limitations and require proof of proper garaging. Additionally, limited-use vehicles should not be used for business purposes and must be stored securely when not in use.

Some examples of limited-use vehicles include classic cars, antique vehicles, show cars, collector cars, and seasonal vehicles such as motorcycles or convertibles used only during specific seasons. Limited-use auto insurance is ideal for individuals who own vehicles that are not their primary means of transportation and who want to ensure their vehicles are protected while also benefiting from potential cost savings.

Allstate, USAA, and Geico are among the top insurance providers offering competitive rates and comprehensive coverage options for limited-use vehicles. Their premiums can start as low as $39 per month, providing budget-friendly options for individuals seeking to insure their limited-use vehicles.

Recreational vehicles

Specialty auto insurance is a type of insurance that covers specific types of vehicles that are not typically used for everyday purposes. It is designed to meet unique needs that are not addressed by traditional insurance policies. One such example is recreational vehicles (RVs) insurance.

Specialty auto insurance for recreational vehicles is important because traditional auto policies may not adequately cover these unique vehicles. A recreational vehicle insurance policy typically offers collision and comprehensive coverage, with the option to add liability protection. This type of insurance is particularly important for certain states that require recreational vehicles to have a minimum amount of liability protection when operated on state-owned lands.

When considering insurance for recreational vehicles, it is essential to understand the specific needs and requirements of the vehicle. For example, marine coverage for boats and personal watercraft may include protection against water damage and liability coverage in case of an accident. Similarly, off-road vehicle coverage for ATVs, snowmobiles, and dirt bikes should include collision coverage for accidents that may occur during off-road exploration.

In addition to the standard insurance coverage, there are also additional considerations for recreational vehicles. For instance, travel trailer coverage is necessary if you use a travel trailer as a seasonal or permanent home. Fifth-wheel coverage is specifically designed for the unique risks associated with fifth-wheel trailers. By understanding the specific needs of your recreational vehicle, you can ensure that you have the appropriate coverage to protect yourself and your assets.

Farming and ranch vehicles

Specialty auto insurance is designed to meet unique needs that are not covered by traditional insurance policies. This includes farming and ranch vehicles, which often require specific types of coverage.

One key consideration for farming and ranch vehicles is whether they are used on public roadways. If they are, it is typically a legal requirement to have auto insurance coverage, including liability insurance. Liability insurance covers damage to other people's property and injuries to others caused by the insured vehicle. This is important because accidents can happen, and they can result in significant financial losses for farmers and ranchers.

In addition to liability insurance, there are several other types of coverage that are important for farming and ranch vehicles. Collision coverage, for example, can help pay for repairs or replacements if the insured vehicle is damaged in an accident or due to an overturn. Comprehensive coverage is also valuable, as it protects against non-collision incidents such as fire, theft, vandalism, and severe weather damage. This type of coverage is especially relevant for farms and ranches located in areas prone to natural disasters.

Another important consideration for farming and ranch vehicles is uninsured and underinsured motorist coverage. This type of insurance protects the policyholder and their passengers from bodily injury caused by drivers who do not have sufficient insurance. Additionally, medical or no-fault coverage can provide further protection in the event of accidents involving the insured vehicle. This type of coverage can vary by state, so it is important to consult with an insurance agent to determine the specific requirements and options available.

Overall, specialty auto insurance for farming and ranch vehicles is essential to protect against financial losses due to accidents, natural disasters, and other unforeseen events. By tailoring their insurance coverage to their specific needs, farmers and ranchers can ensure that their vehicles, operations, and livelihoods are adequately protected.

Frequently asked questions