Finding the most desirable classic car insurance needs some particular factors. A standard insurance policy for autos may not be enough because, unlike normal automobiles, classic cars increase in value with time.
The classic car insurance policy is specifically designed for these cars as well as their proprietors.
What Exactly is What is A “Classic Car”?
Certain people might make use of the terms vintage, collector, and classic to mean the same thing. However, your insurance provider likely has its definitions of these kinds of cars. For instance, here is the way State Farm defines differences:
A classic car is a vehicle that has been in operation for 10 or more years, and that due to its limited production or exceptional craftsmanship is rare or has historical significance and is being restored and maintained by collectors of classic automobiles.
A classic automobile is a vehicle that is a minimum of 25 years old and has been maintained, restored, or preserved by antique auto enthusiasts.
Replicas are copies of an old or classic vehicle. If the car is at least 25 years old, it is priced as an antique.
Other insurance companies may not include the term “age” in their definitions. For instance, American Modern Property & Casualty Insurance Co. defines a collector car as a vehicle or truck that has characteristics distinctive characteristics, rarity, or overall popularity among different generations making the car above the typical car.
Also Read: Unique Auto Insurance
The Right Classic Car Insurance
Car owners with classics should take note of the types of cash payouts that a policy can provide if the vehicle is damaged or destroyed.
If you have a personal auto policy for a regular vehicle you will be able to claim the car’s “actual cash value” if it is stolen or destroyed. In contrast to classic cars, regular vehicles are depreciated (lose value) each year.
So, instead of making payouts based on cash value, an old automobile insurance policy may provide:
Stated Value:
The cost of your insurance is determined by the amount you declare when you purchase the insurance. You will require documentation to prove the amount of the vehicle.
However, in the event of an insurance claim, the company will pay you the value stated or the cash value, whichever is lower.
Agreed Value:
The insurance company and you decide on the value of the vehicle, which is likely from appraisals and other evidence. If you suffer the total loss, you receive the value you agreed to.
Experts generally recommend buying the agreed-value insurance for collector vehicles. It is possible to alter the agreed value upon renewal to reflect current values.
Limited Use of Classic Auto Insurance
Certain policies base charges upon “limited use.” This typically means that you can use the vehicle only for parades, events classic car club events, and other related events. The vehicle should not be used for everyday driving such as a commute.
Discounts for Classic Car Insurance
You could be eligible for various discounts from your insurance provider for your usual car. EverQuote examined state filings filed by insurance companies, and we discovered that classic and antique cars are usually not eligible for common discounts on insurance cars.
For instance, a driver of a classic vehicle may not be eligible for a good discount for driving, a good student discount, multi-car discounts multi-policy discounts, and so on. These rules can differ from one insurance company.
Allstate Traditional Car Insurance
Allstate provides classic car insurance through the partnership with Hagerty.
American Modern Classic Car Insurance
American Modern offers agreed-on value policies. Additionally, it offers a variety of options for coverage, like its Automobilia endorsement.
This can cover items from the past that are associated with collector vehicles, like badges, toys made of cast iron accessories for hoods, and wall decor.
Classic Car Insurance That is Classic and Timeless
Grundy Insurance offers agreed-value policies from AIG. With the Grundy collector car insurance policy, you can drive unlimited miles for enjoyment or car shows.
However, the vehicle is not able to be used for everyday driving.
Classic Car Insurance from Hagerty
Hagerty is a specialist in the insurance of car enthusiasts such as antique, classic, military, and modified automobiles. The classic car insurance policies that it provides are insured through Essentia Insurance Co. and Nationwide. Hagerty’s “guaranteed value” policies are like value agreements.
Classic Progressive Car Insurance
Progressive provides its customers with policy options through Hagerty.
State Farm Classic Car Insurance
State Farm will cover classic vehicles that are used in limited quantities for parades or exhibitions. Classic cars need to be repaired as well as maintained or in the process of restoration. State Farm offers agreed value protection.
USAA Classic Car Insurance
USAA sells agreed-value insurance policies that are sub-written by other firms like American Collectors Insurance.
FAQs
Q: What qualifies a car as a “classic” for insurance purposes?
A: In the context of insurance, a “classic” car is typically one that is at least 20 to 25 years old, has retained its original design and specifications, and is considered to be collectible or of historical significance. However, the exact criteria can vary between insurance providers. It is important to check with your insurer to understand their specific definition of a classic car.
Q: How is classic car insurance different from regular auto insurance?
A: Classic car insurance differs from regular auto insurance in a few key ways. Classic car insurance takes into account the vehicle’s value, rarity, and potential appreciation over time. It may offer specialized coverage options for restoration and preservation. Additionally, classic car insurance often comes with mileage restrictions since these vehicles are usually driven less frequently. Regular auto insurance, on the other hand, focuses more on day-to-day use and depreciation.
Q: How is the value of a classic car determined for insurance coverage?
A: The value of a classic car is typically determined using one of several methods:
Agreed Value: You and the insurance provider agree on a set value for the car, which is paid out in the event of a total loss.
Actual Cash Value: This takes into account depreciation and pays out the car’s current market value.
Stated Value: You declare a value for the car, which is used as a reference point for coverage, but actual payouts may vary.
Q: Can I use my classic car for everyday activities with classic car insurance?
A: Classic car insurance is designed with the understanding that classic cars are generally driven less frequently and for special occasions. Most policies have mileage restrictions to reflect this limited use. Using a classic car for everyday activities may violate the terms of your policy. If you plan to use your classic car regularly, you might need to explore different insurance options.
Q: Are modifications or customizations covered under classic car insurance?
A: Modifications and customizations can vary in their coverage under classic car insurance. Some policies might cover them, while others may not. It is important to inform your insurance provider about any modifications you have made to your classic car. You may need to negotiate or pay extra to ensure these modifications are adequately covered in your policy. Always clarify the coverage details with your insurer before making modifications.