Classic Car Insurance Review

Not what you might think, getting classic car insurance is very affordable. However, most insurers specializing in this type of auto insurance have standard requirements. The policies are also limited. To get your car insured, the insurance company first needs to establish your car's value. For classic/collector cars, this is mainly based on condition. Classic car pricing guides like NADA and Manheimgold's Gold Book, are used by most antique car insurance providers. Price is generally established by your car's: Make, Year, Model and its' condition: Fair, Good, Excellent or Show.

Classic Car Insurance Versus Standard Car Insurance:

Classic car insurance is designed for the collector. It includes a restrictive policy that is different than a standard auto insurance policy. For example, you can't drive "a classic car" daily. (Many classic auto policies allow you to drive your vehicle up to 5,000 miles per year). And, many classic car insurers require you to have at least one other car, in your name, for everyday use. On the plus side, this type of auto insurance policy is often an "Agreed Value" versus most standard cars "Actual Cash Value." What's the difference? For an "Agreed Value" policy there's no depreciation on your car's value if it is stolen or totalled. The reason is because the value of most classic cars is stable. They tend to appreciate slowly over time. This is not the case with an everyday car where generally the "Actual Cash Value" policy reflects the cars depreciated book value.

Guidelines:

Insurers of Classic cars offer well-priced premiums largely because these policies are limited. But, you have to follow certain guidelines in order to obtain and maintain a policy. In return, usually you will receive full coverage auto insurance. Typical guidelines include:

The car must be in a fully-enclosed, locked garage
Owner can only drive a certain amount annually. (2,500 and 5,000 miles is standard)
Owner must have a clean driving record
Policyholder must have 10 years or more driving experience
The auto can be driven for hobby activities, club functions and an occassional pleasure drive
Proof that you have another car for daily transportation
No teenage drivers on your policy

What is a Classic Car?

According to most auto insurance companies, a classic car is defined as a vehicle 15 years or older. Some of the premium classic cars are:

58' Corvette
53' Corvette
58' Mercedes
69' Ford Shelby Mustang

…And, as an example, what would it cost to insure a 69' Shelby, valued at $135,000? With the standard miles above, an individual would probably pay under $1,000 per year. Can you imagine the cost, if this high valued car were insured through a regular insurance company? Don't forget, a regular auto insurer doesn't write out these types of limited policies. It would cost you a lot!

Types of Classic Cars:

muscle
sports
special interest
exotic
sports
luxury cars
collectible cars
truck, van, suvs
antiques
low riders

How to Get Classic Car Insurance?

Unlike most vehicles that depreciate, a classic car holds its' value and appreciates over-time. Because of this, it is beneficial to insure a classic car with an insurer that specializes in classic cars. By choosing this specialty insurance, you can save money as well as protect your investment. How to find the right insurer? Just like regular auto insurance, you want to look for a company that offers good rates and policies. Also, look for a company with good customer service, that is financially stable. Take your time and review your options. There are a number of companies to check out online and get quotes from. A few insurers to consider are Grundy, Hagerty, and Aon.

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