What To Know About Classic Car Auto Insurance

Insurance Blog

Are you a vintage or classic car enthusiast and own at least one? It's likely a vehicle that you want to keep in pristine condition, and do not drive that often other than to show it off. However, a classic car still needs to be insured, even though it has very few miles put on it every year. Here is what you need to know about ensuring your vintage or classic car.

Agreed Valuation

A huge difference between a normal car and a classic car is how it is valued. When it is a car that you drive every single day and has no value when it is not running anymore, the car typically depreciates in value and you are given the depreciated value in a total loss situation. However, classic cars are a bit different with how the total value is calculated.

Auto insurance providers generally use an agreed-upon value to insure a classic car, meaning that you and the insurance provider both agree on a car's value before you insure it. If there is a situation where the car suffers a total loss, then that agreed-upon price will be more honored than the actual cash value of an old car. 

Limited Use Coverage 

You are not using a classic car for commuting to work or traveling long distances, so it makes sense that the vehicle is not insured in the same way. This can result in having a specialized policy that is based on limited usage. You may only want coverage for a specific amount of miles per year and agree to not use the vehicle any more than that to have a reduced premium. 

Restoration Coverage 

A lot of money and time goes into restoring and preserving a classic car. You can't always get parts that are off the shelf if something goes wrong, and you need to track down rare and specific original parts instead. This is all taken into consideration with restoration coverage so that you have the money to acquire those old parts if an accident results in necessary restoration work.

Storage Requirements 

Pay attention to the storage requirements of a classic car insurance policy. You may be surprised to see that you have to take additional steps to store the car so that it is not damaged by the weather, such as keeping it in a garage or covered when not in use. Some insurance providers also want you to take additional steps to protect the vehicle from theft and vandalism and may require that a secure garage is used instead.

Contact an auto insurance provider today to learn more.


26 July 2023