Classic Car Insurance – Information And Tips


What is a classic car?

A classic car is defined differently depending on state. Different providers define the age of a classic car differently.¬† Some cars which are made during the 1920’s to 1940’s qualify as a classic car, and some insurers consider a car over 10 years old to be classic. So you might be driving a classic car without knowing it! Only the insurance company can say, but before you consider getting a classic car insurance, you have to know more about it first.

classic car insuranceClassic car insurance usually offers the same coverage as the standard car insurance. This includes, collision, liability and comprehensive. But how does a Classic Car Insurance differ from a Standard Car Insurance?

  1. The Cost

A classic car insurance costs relatively lesser than a standard one because in most cases, classic cars are not driven regularly, thus posing a lower risk.

  1. The Value

A classic car and a standard car are valued differently. Classic cars appreciate rather than depreciate in value. Some classic cars even go as high as 5x their original price. So if you got a classic car insurance, and your car got totaled, you are most likely to get its current market value; while if you insured that car with a standard car insurance, you can only get the original value of the vehicle, or even lower.

  1. The amount insured

With standard car insurance, your car is, generally, insured for the same amount for the duration of time you own it. This is not the case with classic car insurance. If you are restoring your classic car, you may need to adjust the amount you insured it for once finished, because restored cars  can be worth remarkably more than those that were not.

Qualifications for classic car insurance

Not everyone who has a classic car, are eligible for a classic car insurance. Here are some factors that are considered for eligibility:

  • Ten years (or more ) driving experience
  • Must be at least 25 years old
  • Good driving record, free of major incidents
  • Proof that the car has minimal mileage placed on it
  • You must have another car you use regularly
  • You must have a secure storage facility where the car is kept

When purchasing a classic car insurance, you must be aware of the different kinds types of value your agent might speak of:

Actual cash value- this is usually the amount you can expect to get from a standard car insurance.

Stated value- this is the value you consider the car is worth. It’s unlikely for companies to accept the stated value alone as proof of a car’s worth.

Agreed value- the value that you and your agent have agreed based on the documentation you will provide. This is the most common type of value when you talk about classic car insurance.

If you’re looking to purchase a classic car insurance, make sure you work with an insurance company that understands the complexities of classic cars, and offers you the suitable insurance coverage relevant to your situation.