Limits generally don’t exceed 5,000 miles. They might also require you to keep your classic car in a secure garage to help protect it from weather damage and theft.
Most insurance companies will also require you to own another car for daily use to prevent you from reaching your mileage limit on your classic. Some insurers refuse to offer insurance to owners of classic cars who are younger than 30-years-old.
In most instances, you can have a specialty insurance agent assess your car and determine an “agreed value” on your car. This is different from the actual cash value (ACV) of a regular car. The agreed value of your car may be determined by either the auction prices of similar cars or the appraised market value of your car at the time of inspection.
Classic cars are valued at different rates than regular cars and often need a different type of insurance.
Why is Classic Car Insurance Necessary?
Many classic car owners put their cars under regular auto insurance policies believing that will be enough, but that’s not the case. Regular auto insurance policies consider the value of your car will depreciate over time, meaning they’ll pay out less money for accidents as the years go by. In most instances, classic cars gain value over the years. In the event of an accident in your classic car, having only plain car insurance will cause you to lose money.
Classic car insurance offers all the same coverage as regular car insurance, including liability, collision, and comprehensive. In most cases, it comes at a lower cost, as your classic car won’t be on the road nearly as often as your daily use vehicle. This means, you can save between 20 and 40 percent on your classic car insurance.
Some insurance providers also offer specialty towing services for classic cars with soft straps and guaranteed flatbed towing. Some will also replace your damaged vehicle with original parts.
If you’re still unsure about whether or not you should purchase classic car insurance in addition to your regular auto policy, please contact and agent today who will be happy to discuss your needs.
Types of Collector Auto Insurance
While most collectible automobile insurance policies are relatively similar, the way carriers classify different types of collectible vehicles, including some types they exclude coverage for, is important to understand. Although definitions, years and descriptions can vary from insurer to insurer and state to state, the most common collectible auto categories are below. We generally will use classic and collector car insurance interchangeably for the purposes of simplicity.
Classic Car Insurance: defined by many companies as being 19 to 24 years old, restored, in good working condition, and greater than the average value of other autos of the same make and model year; some insurers consider a car of this description that is only greater than 10 years old to be “classic.” The Classic Car Club of America regards classic vehicles to be those manufactured between 1925 and 1948.
Antique Car Insurance: defined by many companies as being at least 25 years old and in good working original or original restored condition. In some states, an “antique” car only needs to be at least 20 years old, while the Antique Automobile Club of America regards a car that is at least 45 years old to be antique.
Modified Car Insurance: defined by many companies as being significantly altered in its engine, body, chassis or interior from its original condition, which can negatively or positively change the value; many insurers will not provide collectible coverage for these types of vehicles (for example, an antique car in which much of the stock equipment has been replaced or that runs on nitro fuel).
Kit cars and replicas: defined as representation automobiles that are at least 24 years old with separate manufactured components, or that represent the assembled reproductions of any motor vehicle at least 25 years old.
Other subcategories within these four main categories include:
Street rods/hot rods made before 1949 and that have been modified
Vintage automobiles manufactured between 1919 and 1930 that may or may not have been modified
Veteran vehicles made before 1919
Rare motorsport vehicles, vintage military vehicles, classic motorcycles, antique tractors and modern limited production models.
Automobiles on the periphery that commonly do not qualify for collectible car insurance include “exotics” — cars that are under 15 years old but that have the potential to increase in value; and “old” cars, which are considered simply long in the tooth and not classic, antique, vintage or veteran.