Automotive Insider

Classic Car Insurance: What to Know

No classic car owner should go without the proper insurance. Many classic car owners decide to insure their car through their current insurance agency that also insures their daily driving vehicles, and this is highly discouraged. Too many collector car owners believe that classic car insurance is expensive, but it is usually cheaper than going through your current insurer, even with multiple auto discounts. Not only is it likely cheaper, but using a collector car agency will properly insure your classic car.

Only classic car insurance companies offer “Agreed Value” insurance policies. This is the only insurance policy you should have on your classic car. Any other insurance type will likely cost you in the unlikely event of a total loss. With an agreed Value policy, you and the insurance company agrees on a value of the car, and you are paid the full amount if the car is totaled out. With other insurance policies, the valued amount can depreciate over time or worse yet, you will be paid the book value of your car. Classic car insurers know the true value of your car, and they know you will drive your collector car safely maybe even safer than your other vehicles so rates are usually low if you have a decent driving record.

Most classic car insurance do have limitations you should be aware about. One of the biggest limitations is the mileage. Most policies only allow 250 miles a month or 2500 miles driven a year. For a mall increase in premiums this can sometimes be bumped up to 500/month or 5000/year. Most policies also require the owner to be at least 25 years old, if not 30. A minimum of a 10 year driving record is usually a requirement as well. These are the basics you need to know to properly insure your classic car.