Auto Insurance for Classic Car Owners

If you’re the proud owner of a classic car, you’ve probably got that car insured. But are you insured with a specialist insurance company that only insures classic cars? Or are you simply insured with a run-of-the-mill auto insurance company? If you’re in the latter camp, you might be paying more than you need to, for entirely the wrong kind of insurance.

Classic car insurance is unique in the auto insurance world, in that it provides coverage specifically for cars that, very often, are driven very infrequently. That, and the specialist nature of the insurance provided, often allows classic car insurers to charge much less for their insurance. For the classic car owner it can mean significant savings, and additional peace of mind, in knowing that the special risks of owning a classic car are protected against.

Features of Classic Car Insurance

Depending on the specialist company you buy insurance from, your policy might include a number of standard and special features.

Perhaps the most of important of these is agreed value coverage. With this type of cover your classic car is insured for the full value of the car in the event of a loss (the value of the car is agreed upon by you and the insurer). This is a particularly important aspect of classic car insurance, because standard auto insurance takes depreciation into account and pays a reduced sum for an auto claim. If you’ve got your classic car insured with a standard auto insurance company, this is the number one reason why you need to rethink that decision immediately.

Other special features of your classic car insurance might include:

• Premium rates based on how often the car is used (usually the insurer will have different policies and premium rates in categories based on a given annual mileage)
• Comprehensive, collision, and liability (similar to standard auto insurance)
• No deductible
• One liability charge, even if you own multiple classic cars
• Instant coverage up to a certain dollar value for new purchases (even before the car is evaluated by your insurer)

Special Requirements for Classic Car Insurance

Most classic car insurers have special requirements for the protection they provide. These might include any or all of the following:

• A requirement that each car that is insured be locked in a safe garaging facility when the car is not being driven or otherwise in use.
• Cars may not be driven for every-day tasks such as dropping kids off at school, as a replacement vehicle for your normal car, or for business purposes.
• Some companies may have exclusions. For example, they might stipulate that the car’s insurance doesn’t extend to racing the car, driving at high speeds or in timed events, or being used for driver’s education purposes.
• If the car is currently being restored, there may be special requirements that stipulate where the car must be stored during that process. In addition, agreed value coverage may not apply to a car undergoing restoration.