When Ordinary Just Won’t Work: Antique Cars Need Specialty Auto Insurance

Category: Personal Insurance

A standard car insurance policy is not the best bet when insuring an antique or classic car. Rather, you need specialty antique or classic car insurance to be sure that you are fully and properly covered in the event of a loss.

Specialty collector or antique car insurance is for a wide range of vehicles from antique, vintage and classic vehicles to newer, limited production, exotic or special interest vehicles. For this post, we will focus on antique or classic cars.

Standard car insurance assumes that the value of your ordinary car decreases every year (depreciation), and therefore the amount that your insurance company will pay out in the event of a total loss also goes down over time. But well-maintained antique or classic cars hold their value—and often appreciate—over time. Your insurance should cover you for the true market value of your antique or collectible car.

And while the higher value of your antique vehicle might make you think that your rates will be sky-high, the opposite is true. Antique or classic car insurance is often cheaper than ordinary car insurance. This is because insurance companies know (and probably require) that you have an every day car. Your antique car is driven a minimal number of miles every year, and your risk for loss is therefore minimized as well.

The best coverage for an antique car is usually available from a specialty insurer who will negotiate an agreed value policy for your antique car based on its appraised market value or on auction prices for similar cars. Some policies may even allow for the insured value of the car to increase every year—quite the opposite from ordinary car insurance where the actual cash value decreases dramatically over time.

A typical antique car policy might include the following types of coverage (specific coverages and limits will vary by insurance company):

  • Tiered mileage plans tailored to your needs
  • Agreed upon stated value coverage
  • Coverage for modifications to the vehicle
  • Roadside assistance
  • Spare parts and accessories coverage (up to specified limit)
  • Liability coverage
  • No-fault medical payments coverage
  • Comprehensive and collision coverage
  • Uninsured and underinsured motorist coverage

Your vehicle must qualify as a collectible or antique to qualify for classic car insurance; different insurance companies will have different criteria for this. Most antique car policies will restrict the number of miles you can drive (e.g., no more than 5,000 miles per year), and will require you to own another daily use vehicle. Your insurance company will also require you to securely store the antique vehicle when it is not in use. There may be age and driving record requirements, as well.

All insurance companies have varying levels of service, rates and types of coverage available. If you want to insure an antique vehicle, it is important to find a company that offers high quality service and a knowledgeable staff that understands collector vehicles. We can help you find the right policy from the right insurance company so you can take your antique car out on the road without worry.

Tell us about your antique or classic car. Then, contact us today to make sure you have the right coverage.

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