If you’re a lover of unique vehicles, chances are that you’ve at least dreamed about collecting classic cars. Although these autos can present a number of challenges, they’re undoubtedly unparalleled in both their quality and their aesthetic appeal. If you’ve made the leap to start collecting these amazing automobiles, it’s understandable you’d have some questions about how you can protect them through your insurance coverage. Due to the special considerations surrounding these cars, there’s actually a whole different type of policy specifically geared towards collector vehicles. But how exactly does classic car insurance differ from the kind of standard insurance you’re used to obtaining? We’ll answer some important questions surrounding insurance for antique cars in today’s post.
How Are Classic Cars Defined?
There are a few different ways that older vehicles are categorized, sometimes depending on the state you’re in. Generally speaking, a classic automobile is a car that’s at least 10 years old (usually between 10 and 40 years old) that’s been maintained and restored in a fashion that stays true to its original design and holds some type of historical interest. Antique cars are typically at least 25 years old and have also been maintained and restored in a fashion that stays true to the original specifications. “Vintage car” is a term that’s up for debate, but it usually means a vehicle that was manufactured between 1919 and 1930. The difference there is that vintage cars can actually be modified and still keep their status; the same cannot be said for classic and antique cars.
How is Classic Car Insurance Different From Standard Car Insurance?
The average car owner puts roughly 13,500 miles on their vehicle every year. But if you own a 1960’s Mustang or VW Bug, chances are that you’d drive it far less. For example, you’re not going to be operating it in the snow. And yet, you’ll probably want a lot more protection than one might expect with a modern sedan or a mini-van, even in extreme weather conditions.
That’s where classic car insurance comes in. One of the main differences between classic car insurance and standard car insurance is that insurance for classic vehicles is actually less expensive. That’s really because you aren’t going to be driving the vehicle year-round, which means the insurance company isn’t taking as big of a risk in insuring you. Many providers won’t even have a deductible for classic vehicle insurance.
What’s more, the value of your vehicle is determined differently when you obtain insurance for a classic car. With conventional auto insurance, your policy will only cover you up to the car’s actual cash value — in other words, the cost of replacement minus depreciation. Unlike a modern vehicle, a classic car’s value will typically rise over time, particularly so if they’re in great condition and have been lovingly restored. Classic auto insurance is different in that your policy will cover you for what’s called a “guaranteed” value. This agreed-upon value is usually what the vehicle is worth, based on an appraisal or classic car guides. In other words, your insurance company will compensate you for your car’s full value, if you’re in an accident that totals the vehicle.
What is Covered By Classic Car Insurance?
Although coverage areas for this type of insurance will likely depend on the company you choose and the vehicle you own, policies will likely be available for both comprehensive and collision coverage, as well as liability, medical payments (for no-fault situations), emergency roadside assistance, uninsured motor vehicles, loss of earnings, or fatalities. Some insurance companies will also offer original replacement parts coverage, which may be an important point to note — these parts can often be difficult to track down. With any policy, you’ll benefit from guaranteed value coverage.
If you’re a classic car owner, you’ll likely do everything to safeguard your most prized possessions. Obtaining classic car insurance is the ideal way to obtain peace of mind — often for an extremely affordable rate. To learn more about our policy options, please contact us today.