You’re the proud owner of a collector’s car. You restore it, you keep it clean, you protect it from the elements, and you treat it like your baby. But despite all that energy you put into keeping your collector’s car safe, are you actually protected? Your collector car is very different from a regular car and your insurance should reflect that.
A collector car insurance policy is one of the best ways to ensure your prized classic car is covered in all instances, especially unexpected or unforeseen mishaps. Here, we’ll take a look at why you should get a collector car policy, what a typical policy looks like, and what kinds of collector cars are eligible for one.
Why get a collector car policy
There are many benefits to insuring your classic car with a collector car policy over a standard auto policy.
Guaranteed value payout
Conventional auto insurance typically pays out actual cash value in the case of an accident. That means if your car were totaled, the insurance carrier would pay you the replacement cost of the car minus depreciation. Cars start depreciating the second they drive off the lot, so your insurance payout value goes down a little bit all the time. The actual cash value you’d get paid in a conventional insurance payout is usually less than what you paid for the car.
But classic cars generally increase in value, especially if they’re resorted or cared for. You don’t want an insurer to pay out actual cash value, because this won’t take into account the value of the car in the collector’s world. You’d get paid out a lot less than what the car is actually worth.
Collector car policies offer to pay a guaranteed value. This is a number that you and the insurance company agree on based on collectible car valuations and appraisals. So if your car were totaled, you would get paid out the collector’s value of your prized possession.
Collector car policies tend to have lower premiums than standard auto insurance. In most cases, you’re using your classic car a lot less frequently than your primary car— and probably only on good weather days—so you’re less likely to get into an accident. There’s a lot less wear and tear on a car that isn’t on the road as much also. Plus, insurers assume you’ll take extra good care of your car since it’s a collector’s item.
Overall, this means your collector car should be less of a risk than other cars. A lower risk means a lower premium. So a collector car policy will usually offer a lower premium than your standard auto can. But if you opt for standard auto insurance for your collector car, they won’t take this into account.
A lot of classic car owners want to show their car in exhibits or parades. Traditional auto insurance doesn’t cover the unique liabilities that can occur during showing.
A collector car policy can offer coverage specific to showing:
- Auto Show Medical Reimbursement Coverage: Regardless of who is found at fault, this helps reimburse your own medical payments or costs if you (or someone in your party) sustains an injury while featuring your car at a show or event.
- No Attendance Required: This part of the policy provides coverage for damage to your vehicle that occurs while you’re not there. For example, this would step in if your car is damaged while a car dealership is showing your car or if you’re at an auto show and step away for a cup of coffee.
- Coverage for Spare Parts: This will cover any spare parts for your car, including those that you keep in the car and those in your garage. This is especially important if you have a lot of expensive equipment around during the remodeling or restoring process.
In addition to these coverage offerings, collector car insurance offers most of what standard auto insurance covers including:
- Bodily injury liability,
- Property damage liability,
- Collision + comprehensive,
- Uninsured/underinsured motorist coverage,
- Roadside assistance, traveling coverage, and other optional coverage.
Learn more about what standard auto policies cover here.
Who is eligible for a collector car policy?
If you have a collector’s car, we almost always recommend looking into a collector car policy. Not everyone is eligible, though. Below we lay out the standard requirements, though it will depend on the different insurance carriers.
- A “classic” car is usually 19-24 years old, in working condition, and greater than average value for other cars in the same make/model.
- An “antique” car is at least 25 years old, in working condition, and an original or original restored.
- A modified car has been altered from its original condition in a way that impacts the value of the car.
- Replicas or kit cars are representation automobiles for classic or antique cars.
- Carriers might also consider other collector vehicles like street rods, classic motorcycles, antique trailers, or veteran/war vehicles.
These classifications will vary based on the insurance carrier.
Different insurance carriers will offer different sorts of policies for each of these classifications. In general, if it falls under a classic, antique, or collector car, you’ll want a collector’s policy.
- The classic car can’t be the primary driving vehicle. It’s usually limited to pleasure driving or hobby activities. Commuting in the collector car isn’t permitted.
- You have to agree not to race the classic car.
- You have to take reasonable steps to safeguard your car from the elements, like keep it in a covered, locked garage.
- Your state or insurance carrier may have annual mileage restrictions. For example, you can’t drive the car more than 7,500 miles per year.
- You usually have to be at least 25 years old.
- You have to demonstrate a good driving record with no more than one at-fault accident or moving violation in the past 3-5 years.
Certain states don’t offer collector car insurance options.
Get a collector car policy
If you have a collector car or you’re in the process of restoring one, it’s definitely worth it to get a collector car policy instead of a traditional policy. These policies are the best way to protect your high-value investment for years of fun and enjoyment for years to come.
Get the right policy for your classic car by calling one of our expert insurance advisors today at (844) 300-3364!
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