What Is Classic Car Insurance?

Classic car insurance is a specialized coverage designed for vintage and collectible cars, providing agreed value coverage and lower premiums due to limited use and better maintenance of these vehicles. It ensures full compensation based on the car’s appraised worth and offers additional benefits tailored to classic car owners.

What is classic car insurance? It is tailored to meet the distinct needs of vintage and collectible car owners. Contrary to standard policies, it doesn’t just account for damage and liability; it acknowledges the inherent appreciating value of these vehicles. In this guide, we’ll explore the pivotal differences, outline who’s eligible, and offer insights on finding suitable protection for your automotive gem—without drowning you in dense terminology or tangential details.

Key Takeaways

  • Classic car insurance provides agreed value coverage for antique and classic cars, ensuring full compensation based on the car’s appraised worth regardless of depreciation, which is a key distinction from regular auto insurance.

  • Eligibility for classic car insurance depends on factors like the age, value, and customization of the vehicle, as well as the owner’s driving habits and vehicle storage conditions, with specific guidelines such as mileage limits and secured storage requirements.

  • Classic car insurance premiums are generally more affordable than standard auto insurance, reflecting the less frequent use, lower risk of accidents, and attentive maintenance by owners, with additional discounts available for insuring multiple assets with the same provider.

Defining Classic Car Insurance

A specialty type of insurance, classic car insurance, offers unique coverage and agreed value protection tailored for antique and classic cars. This means that your classic car is insured for an agreed-upon value that reflects its appraised worth, unlike regular auto insurance which considers depreciation. This ensures that in the event of a loss, you are compensated for the full agreed-upon amount, which can sometimes reflect appreciation in the car’s value.

With classic car insurance, your prized possession gets adequate coverage, offering you peace of mind as you enjoy your classic car. After all, owning a classic car is a passion, and your insurance should reflect that.

Key Features of Classic Car Insurance

Agreed value coverage stands out as a key feature of classic car insurance. This means that the insurer and the owner agree on the car’s value when the policy is written, thus safeguarding it against depreciation. This is particularly beneficial since classic cars often increase in value over time, unlike regular vehicles that depreciate.

Lower premiums also distinguish classic car insurance as unique. These are often a result of the limited, hobby-oriented use and the excellent maintenance of such vehicles. Furthermore, classic car insurance offers owners the flexibility to choose specialized repair shops or trusted mechanics for the repair or restoration of their classic cars, which is crucial for maintaining the car’s value and authenticity.

Benefits for Classic Car Owners

With its unique characteristics and benefits, a classic car insurance policy can be a more cost-effective alternative to conventional auto insurance. For starters, classic car insurance can be less expensive due to factors like less frequent use and good maintenance of the vehicles.

Imagine driving your classic car to car shows or on weekends, knowing that your specialized classic car insurance policy is tailored specifically for your needs. That’s the convenience and peace of mind that classic auto insurance, also known as classic car insurance, provides.

It’s not just about having insurance; it’s about having the right kind of insurance for your classic car.

You can read more of our blogs about Classic Car Insurance for more information.

DID YOU KNOW? Classic car insurance premiums are often significantly lower than standard auto insurance? This is because classic cars are typically driven less frequently and are better maintained, leading to fewer claims and reduced risk for insurers. Additionally, many insurance providers offer discounts for insuring multiple vehicles or combining policies, making classic car insurance an economical choice for car enthusiasts.

Eligibility Criteria for Classic Cars

Classic car insurance doesn’t cover all cars. Eligibility is determined by a number of factors including a vehicle’s age, high value, or significant customization. Contrary to what one might think, even some newer cars like Corvettes and Ferraris may qualify for classic car insurance based on value and other specific criteria, not just age.

Car usage, storage conditions, and the owner’s driving history factor into insurance companies’ eligibility criteria for classic car insurance. Some types of collectible vehicles, including the collectible car category, eligible for classic car insurance include:

  • Antique cars

  • Exotic cars

  • Custom cars

  • Historic cars

So, if you own a classic car that is not traditionally old but has undergone substantial modifications to increase its value, it might still be eligible for classic car insurance before turning 25 years old.

Age and Classification Requirements

In the realm of classic car insurance, age extends beyond just a number. Classic and antique cars are defined by specific age criteria. In general, a classic car is defined as a vehicle that is at least 10 years old.

For antique cars, the age requirement is even higher. An antique car is defined as being at least 25 years old. These age requirements guarantee that classic car insurance’s special coverage and benefits are only extended to genuine classic and antique cars.

Storage and Usage Guidelines

Apart from age and classification, there are other requirements that classic cars must meet to qualify for classic car insurance. For instance, classic car insurance policies often come with mileage restrictions and require owners to have a primary vehicle for everyday use.

Secured storage, such as a locked garage, is a common specification for classic car insurance to ensure the vehicle’s protection. Insurance providers also mandate infrequent use and good maintenance as they believe classic car owners are less likely to file a claim compared to regular drivers. Moreover, it’s good to know that insurance for classic vehicles can be extended for international use, including coverage for participation in car shows or events outside the United States.

Types of Classic Car Coverage

Unique like the classic cars themselves, the coverage options available under a classic car insurance policy are equally diverse. For instance, classic car insurance policies may offer tiered mileage plans, allowing policyholders to select a plan with a limited number of miles driven annually in order to reduce policy costs.

In addition to this, many classic car insurance policies provide spare parts coverage, which can be crucial for collectors. American Collectors Insurance, for example, provides coverage for spare parts up to $500. This can be helpful in the event of damage or loss to spare parts. In essence, the specialized coverages included in classic car insurance policies can extend to automobile memorabilia, along with liability, personal injury protection, and other standard coverages.

Agreed Value vs. Stated Value

‘Agreed value’ stands out as a critical aspect of classic car insurance. This form of coverage guarantees the car’s full value without depreciation, unlike ‘stated value’ which may pay the lower of the agreed or actual cash value including depreciation. In the case of a total loss, agreed value insurance ensures the payout is the value agreed upon at policy inception, which is beneficial since classic cars may appreciate over time.

To establish an agreed value, a classic car generally requires an appraisal, with both the insurer and owner agreeing upon the value, which is then used to set the insurance rate. This is an important aspect of classic car insurance as it allows for adjustments in the coverage limit to align with any increase in the value of the vehicle, providing ongoing suitable protection.

Additional Coverage Options

In addition to the standard coverage options, classic car insurance policies can include additional features tailored to the unique circumstances and needs of maintaining and transporting classic cars. For instance, special towing considerations for classic cars, such as flatbed towing, are available to prevent damage during transport.

Classic car insurance policies can also include classic car insurance cover for the replacement cost of rare or original spare parts. These additional coverage options cater to the unique circumstances and needs of maintaining and transporting classic cars. Given the potential high value and specific care requirements of classic vehicles, such coverage options are not only helpful but often necessary.

Comparing Classic Car Insurance Providers

The decision of choosing a classic car insurance provider should be made thoughtfully. Different insurance providers offer varying levels of coverage, so it’s important to evaluate individual needs and coverage preferences before making a choice. When choosing a classic car insurance provider, providers may request documentation such as the vehicle’s history, service records, and updates along with photos to establish an agreed value.

Comparing quotes from companies that match your personal coverage requirements is a recommended strategy to find the best fit for a classic car insurance provider. This way, you can ensure that you’re getting the best coverage for your classic car at the most competitive price.

Top Classic Car Insurers

A number of insurers, each with its own set of tailored features catering to car collectors and enthusiasts, stand out as top providers in the realm of classic car insurance. One such classic car insurance company is Hagerty, known for its restoration coverage and partnerships with standard car insurers, providing automatic value increases during restoration.

American Collectors offers flexible mileage plans, favorable coverage for race cars, and discounts for USAA policyholders. On the other hand, American Modern provides a variety of mileage plans and discounts, allowing classic car driving for occasional commutes. Each insurer provides unique benefits that could serve the particular interests of classic car owners, from comprehensive job-specific coverages to various cost-saving opportunities.

Factors to Consider When Choosing a Provider

Choosing a classic car insurance provider involves more than just looking at the price. While most car insurance companies offer coverage to classic car owners, specialized collector car insurance policies can provide potential savings. Therefore, when selecting a provider, it’s essential to consider the company’s expertise in classic car insurance.

Companies that specialize in classic car insurance generally provide better price and coverage options for the vehicle due to their focused expertise. So, when choosing a classic car insurance provider, it’s important to consider these key differences and make the best choice for your unique needs.

Cost of Classic Car Insurance

Another distinguishing aspect of classic car insurance is its cost, setting it apart from regular auto insurance. Classic car insurance premiums are generally less expensive than traditional auto insurance policies due to factors such as less frequent driving and fewer accidents. Annual rates for classic car insurance can range from $200 to $1000, which can be up to 43% less compared to standard auto insurance rates that often exceed $1000 per year.

However, it’s important to note that the cost of classic car insurance can vary widely depending on various factors. For instance, higher premiums may be required for classic cars of exceptional value due to increased costs associated with repair or replacement.

Reasons for Lower Premiums

What then, one might ask, is the secret behind classic car insurance’s lower premiums? One of the main reasons is that classic cars are generally driven less frequently, which reduces their exposure to risks commonly encountered by regularly used vehicles. This, in turn, results in lower insurance premiums.

Moreover, owners of classic cars tend to meticulously maintain their vehicles, reducing the likelihood of accidents and claims, thereby lowering insurance costs. Additionally, insurers offer lower premiums for classic cars because such cars are often safely stored in secure locations, which diminishes the likelihood of theft or environmental damage.

Available Discounts and Savings

Beyond the already lower premiums, classic car insurance policyholders can take advantage of additional discounts and savings. For example, multiline discounts allow policyholders to save on their overall insurance costs when they have more than one type of policy with the same insurance provider. Classic car owners are eligible for multiline discounts if they insure multiple assets, like their home or another vehicle, in addition to their classic car with the same provider.

By taking advantage of these multiline discounts, classic car insurance policyholders can potentially save between $72 and $110 on their insurance costs. This makes classic car insurance not only a great way to protect your classic car but also an economically smart choice.

Obtaining a Classic Car Insurance Quote

Initiating the process to get a classic car insurance quote online is simple and straightforward. To get a quote, you will need your car’s make, model, and year, or the Vehicle Identification Number (VIN) if available.

The process typically takes only a few minutes, making it a quick task to accomplish. Once you’ve got your quote, you’re one step closer to securing the best possible protection for your classic car.

People Also Ask - What is Classic Car Insurance?

Classic car insurance is a specialized type of coverage designed to meet the unique needs of vintage and collectible car owners. Unlike standard auto insurance, it includes agreed value coverage, which means that the insured amount is based on the car's appraised worth rather than its depreciated value. This ensures that owners receive full compensation in the event of a total loss.

Eligibility for classic car insurance typically depends on several factors, including the age, value, and customization of the vehicle, as well as the owner's driving habits and storage conditions. Generally, the car must be well-maintained, stored in a secure location, and not used as a daily driver. There are often mileage limits to ensure the car is primarily used for shows, exhibitions, or occasional leisure drives.

Agreed value coverage is a key feature of classic car insurance. It means that the insurance provider and the car owner agree on the value of the vehicle at the time the policy is written. In case of a total loss, the owner is compensated for the full agreed-upon amount without accounting for depreciation. This type of coverage is beneficial for classic cars as their values can appreciate over time.

To obtain a classic car insurance quote, you will need to provide specific details about your vehicle, such as the make, model, year, and any modifications. The process usually involves filling out an online form or speaking with an insurance agent. Additional information, such as photographs, vehicle history, and appraisals, may be required to determine the agreed value and finalize the quote.

The Final Verdict - What is Classic Car Insurance?

Classic car insurance offers specialized coverage that standard auto insurance policies do not provide, ensuring that vintage and collectible cars are adequately protected. With agreed value coverage, lower premiums, and additional benefits like flexible repair options, classic car insurance caters specifically to the needs of car enthusiasts.

Understanding eligibility criteria and the unique features of these policies can help owners safeguard their prized possessions effectively. For comprehensive advice and to secure the best possible protection for your classic car, contact an ALLCHOICE Insurance Advisor today.

How to get Classic Car Insurance

New ALLCHOICE customers:
Current ALLCHOICE clients:

Check out the Member Center or call us at 1-844-540-0463 to see if product is availbale and included in your policy.