Insuring Classic Cars

classic carDid you know that it may cost less to insure a classic or antique car than a regular vehicle? This is often the case because antique cars are traditionally well-maintained and frequently left in the garage. Conversely, regular cars, which are driven more frequently, are more apt to suffer dings and the general wear-and-tear of the roads. As a result, the price to insure such classic cars as Shelby Mustangs and Camaros from the 1960s can surprisingly run under $500 per year. Despite this, the majority of classic car owners insure their vehicles on standard policies, spending more than they should because of poor information.

Traditional Versus Antique Insurance

Most cars depreciate in value over time whereas classic cars (think antique Jaguar or Mustang) that is well-maintained and not seeing the pavement very often is likely to appreciate over time. Insurance companies that specialize in policies for classic cars will determine the value of your antique vehicle based on a combination of your estimate, the appraised value, and/or the original winning bid. This is important because if your classic car is somehow destroyed, you will be compensated based on the value stated in the policy. If you purchase a standard policy, that value may not cover the true replacement cost of the car.

Factors to Consider When Insuring An Antique or Classic Car

Just determining whether you have a classic car can be tricky, making it important for you to understand how your insurance agency defines “classic” or “antique” cars (note: some carriers define each term differently). If and when you do identify the right agent to handle your classic car insurance policy, make sure to ask whether these factors can help reduce the cost of your coverage:

  • Mileage: Often, antique cars are infrequently driven, meaning that from an insurance standpoint, they present less risk.
  • Driver’s Age: Many classic car owners are older, experienced drivers; this also reduces risk and annual coverage costs.
  • Vehicle Age: Ensuring that your antique is truly a vintage car is also essential before seeking a specialized policy. Find out how old your car needs to be to be considered antique or classic by the insurance agency.

The trick to getting the best rates for your antique is to unbundle your antique car coverage from your standard car insurance policy. This is a straightforward strategy from an insurance standpoint because one car is receiving pampering and limited miles and the other car is understandably being treated like a workhorse.

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