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Classic Car Insurance Guide: What You Need to Know

Classic Car Insurance Guide: What You Need to Know

Mar 11, 2021

Auto Insurance

Classic Car Insurance Guide: What You Need to Know
If you own a relatively old or classic car, you can save on auto insurance premiums if you make certain adjustments to your coverage. For example, you can lower your coverage limit, drop certain coverages, or increase your deductibles. Here's some more information about insurance considerations for older cars.

Older Car Insurance vs. Classic Car Insurance

The main difference between classic car insurance and standard older car insurance is how the coverage limits are determined. An insurance policy for a standard older car may include collision coverage or comprehensive coverage with the limits hinged on the car's actual cash value (the vehicle's depreciated value). In case your car gets totaled, your insurer will reimburse you for the vehicle's depreciated value. Conversely, the coverage limit for a classic car insurance plan is typically based on a combination of factors, including the car's valuation, improvements, and special-order parts. By combining these factors, auto insurers can calculate the "agreed value" of a classic car, meaning a car's mileage and age aren't the only determining factors.

Car Insurance Guide for Older Cars

You'll likely pay lower rates for collision coverage or comprehensive coverage for an older car compared to what you'll pay for a newer vehicle that's worth more. Cars depreciate over time, and so older cars are usually worth less and thus have a lower coverage limit. You can also drop collision or comprehensive coverage if you fully own the vehicle, but if you drop coverage, you'll have to pay out of pocket if you're in an accident and your car gets damaged. Other factors such as your driving record and the type of vehicle you drive will still impact your auto insurance rates. Therefore, the total premium you'll pay for your older car will be shaped by your unique circumstances.

Guide to Classic Car Insurance

Classic car insurance plans are specifically tailored to protect classic or antique cars. In general, you may need to get classic car insurance if you own classic and antique cars that are at least 25 years old. Per the Insurance Information Institute (III), other vehicles that may warrant classic car insurance include modified cars and hot rods, luxury and exotic autos, muscle cars, and classic trucks.

Classic Car Insurance Coverage

Classic car insurance comprises traditional car insurance coverages like bodily injury liability, property damage, comprehensive, and collision. However, the coverage is based on an amount that you've agreed upon with the insurer. The agreed amount is determined by the following:
  • Professional car appraisal.
  • Car valuation guides such as the Old Car Price Guide.
  • The expertise of specialized classic car underwriters.
Classic car insurance reimburses you if your car is damaged and needs restoration or specialized repair. The costs of repairing classic automobiles are typically higher compared to regular vehicles. The policy can also help replace engine components and wheels, which are often costly, especially if paid for out-of-pocket, and difficult to find.

How to Qualify for Classic Auto Coverage

Various insurers have their qualifications, but typically you can't use an insured classic car for everyday driving. Classic car insurance plans also come with mileage limitations, and you may be required to prove that your vehicle is stored properly. You may be allowed to drive the car to auto club events and car shows, but if your insurer doesn't allow it, you'll need to buy specialized coverage for such trips. The biggest benefit of classic car insurance is that your insurer treats your vehicle as a valued investment, and not just a regular vehicle. To secure reliable coverage, contact the experts at Little & Sons Insurance Services. Serving Banning and the surrounding cities in California, we are ready to assist you with all your insurance needs.
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