How to find the best auto insurance for a classic car? Is it even possible to get cheap antique car insurance? Classics cars can be worth the sometimes expensive cost of maintenance and storage – no need to pay more than necessary for insurance coverage. Read on to know a few things you should know before buying a classic car auto insurance policy.
Who hasn’t turned their head while driving down the road to get a better look at a classic or collectible car? We are impressed by the car’s lines as well as its pristine condition. But detailed attention in maintaining the flawless appearance and operation of a classic car is essential not only to look attractive but also to maintain the market value of the car. For this reason, special classic auto insurance policies were developed to meet the needs of classic and collectible car owners, along with others.
Another reason (a very important reason), is the very low cost of classic car insurance relative to standard auto insurance to insure your vehicle as a classic or collectible. Standard auto insurance can cost 200%-300% more than classic auto insurance. So, what is the biggest factor causing such a huge disparity in price between classic auto insurance and standard car insurance? Generally, collector vehicles operate on a limited basis (the garage is where they are usually found). As a result, the risk of accident and damage to collector vehicles is significantly lower than the risk involved in regularly plying vehicles.
Is your vehicle eligible?
The following is a list of classifications for collectible cars.
- Antique Cars – 25 Years or More
- Custom Cars – 1949 to Present
- Classic Cars – 20-24 Years Old
- Collectible Cars – 15-19 Years Old
- Foreign cars – 15 . less than
- Street Rods – Pre-1949
This is the standard list for cars that are considered eligible for classic car auto insurance, but some cars may be accepted at the insurer’s discretion. Sometimes, classic car insurers will customize an insurance policy for a particular vehicle.
What are the restrictions associated with collector vehicle insurance?
To keep collector auto insurance rates low, certain usage limits have been placed on the insured vehicle.
Cannot be used for everyday use
This prevents using it to drive to work, run errands, or go out to grab that bite to eat. Under a classic car insurance policy, use of the car must be limited to driving to car shows and the occasional parade.
Can’t be driven more than 2,500 miles per year
2,500 is a fairly standard number among insurance companies that offer classic coverage, but there are some insurance companies that have mileage plans that allow up to 5,000 or 6,000 miles per year. This increased mileage limit was imposed to accommodate drivers who prefer to take their cars to distant car shows. Of course, the premiums are high.
Should be kept in a closed garage
A closed enclosed trailer will do as well, but a carport will not meet the grade, even if you live in a gated community with a security guard. (Weather is also the enemy of a classic car). Some policies may stipulate that a car cannot be left unattended in a parking lot. This means leaving your car in a motel or hotel parking lot could be a problem.
What are the things to keep in mind while choosing classic auto insurance?
Does the company provide agreed value coverage or fixed price coverage?
The agreed value allows the classic car owner and insurance agent to set a price for the auto that does not necessarily reflect the market value of that car. Typically, the insurance agent will do a thorough inspection both inside and outside the car and will require photographs of the vehicle.
What are the usage and mileage restrictions?
Find the policy that best suits your plans for car use. Why pay for a plan that covers 5,000 miles when you know you won’t even come close to using the 2,000 miles available in a cheaper policy.
Can you pick your own repair shop?
The mom-and-pop shop down the street may do a good job on your regular car and offer the lowest repair quote in town, but do you really want them to work on your classic “baby”?
Which company underwrites the policy and what is the rating of that company?
You want to make sure that the underwriter has a good track record and is going to be able to meet all of his obligations, even if for some reason there is a higher than normal influx of insurance claims.
Are there any discount programs available?
A good insurance company should always notify you of any discounts available, but it doesn’t hurt to ask.
Does your insurance cover classic or modified cars under construction?
Some companies will monitor progress on your vehicle in the garage for repairs and modifications and allow you to adjust the value of the car as the project continues. Plus, this type of insurance covers damage to your auto in the event of a fire, a hydraulic lift failure, or a tool cart falling on your car (with a little imagination the possibilities are endless.)
Why can’t I add my collector car to the family auto insurance policy?
You can, but it can be a costly mistake. If repairs are needed you may be forced to accept the lowest repair bid, or if the car is badly damaged, the insurance company may choose to meet it. And although a discount is usually given for cars combined under one policy, that discount may not provide the savings available if the car was insured under a classic auto insurance policy.
Finally, make sure your insurance company has a good understanding of classic cars. In the event that your car has been totaled, you want to be able to work with a knowledgeable representative and get the full value of your car.
Compare Cheap Classic Car Auto Insurance Quotes Online
Make sure you shop around and compare car insurance rates from multiple companies before deciding to make a purchase. The more you shop, the more you can save.
Is Insuring a classic car expensive?
Classic car insurance is usually much cheaper than regular car insurance.
Do you need special insurance for classic cars?
Regular use cars that are older will still need to be insured under a traditional policy. Most insurance companies have a mileage limit on classic vehicle insurance.