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Classic cars are unique. Unlike standard cars, if they are well maintained, they actually increase in value over time. Odds are, you’ve put a lot of time and effort into painstakingly restoring your vehicle. Standard auto insurance policies are not designed with the classic car in mind. It’s important to find a policy that is specifically tailored to collector cars to protect your investment.
QUALIFYING FOR CLASSIC CAR INSURANCE COVERAGE
The age of your vehicle, alone, doesn’t determine if your car is eligible for classic car coverage. Although there are variances among specific carriers, these are the generally agreed upon criteria.
- Limited use- This car cannot be your everyday commuting to work vehicle. (Some carriers will want proof that you have another vehicle for everyday purposes.) There may be mileage limitations and proof that the car is being garaged. Please note, if you plan on showcasing your vehicle at car shows that require travel and putting extra miles on your car, your carrier may have special additional insurance for this purpose.
- Secure storage- Insurance carriers will need proof that your classic car is stored in a secure, enclosed structure.
- Good driving record- You may not qualify for this specialty insurance if you have serious driving offences such as reckless driving or driving while intoxicated on your record.
FINDING THE RIGHT CLASSIC CAR INSURANCE COMPANY
There isn’t a one size fits all approach in finding an insurance carrier for your car. Each classic car has its own needs. Coverage for a 1923 Model T that is just starting it’s restoration looks different from a fully restored 1966 Ferrari 330 GTC that travels to be in auto shows.
Look for an insurance company that deals exclusively with specialty cars. Since these companies know the unique needs of older, collectible vehicles, they will usually save the client money. Specialty insurers know the risk for loss is far less in a classic car than an everyday vehicle and premiums on the average are 36% lower than daily driving insurance. Some of the top specialty car insurance carriers are:
- Grundy
- Hagerty
- American Collectors
- J.C. Taylor
- Classic Collectors
- Heacock
WHAT TO LOOK FOR IN A SPECIALTY CAR INSURANCE POLICY
These policies should have the standard coverage for liability, collision, comprehensive, medical payments, and uninsured/underinsured motorists. Additional coverage specific to classic cars you might want to include:
- Agreed Value- When you take out your policy, you and the insurance company agree upon the value of your car. This gives you a chance to explain any work you may have done on the car and why it may have a higher value than comparable vehicles.
- Spare parts coverage- You can’t just go down to the local Auto Zone to find parts for your classic car. Parts are limited and more costly for classic cars so make sure your policy has coverage for parts.
- Restoration coverage- If you are bringing an old vehicle back to life, you’ll want insurance while you restore it. These policies will allow you to adjust the value as you make improvements on the car.
- Roadside Assistance with flatbed towing- This type of towing allows all four wheels to be off the ground. It’s much safer for your vehicle than regular towing.
THE BOTTOM LINE ON CLASSIC CAR INSURANCE
Classic car insurance is available from different insurance providers, choose one that suits your needs with your particular car. Some may offer discounts for multiple cars and anti-theft devices. Even if your car is in full restoration mode and is only housed in a garage, it’s important to have specialized insurance. If something happens to it on your property, your home owner’s insurance will not cover the car in your garage for it’s full value or even at all, depending on your policy. Find a provider that allows you to enjoy your car but still protects it for the years ahead.
