You’ve dreamed about owning a classic car for as long as you can remember. And it’s finally here. Now, you don’t want anything bad to happen to it. Classic car insurance is the best way to protect your beloved antique, vintage, or collector car. At InsuraMatch, we almost always recommend choosing classic car insurance over a standard auto policy for a classic vehicle. Here’s why.
What are the benefits of choosing classic car insurance rather than regular car insurance?
Learn more about classic car insurance with our Ultimate Guide To Classic Car Insurance.
The premiums for classic car insurance are typically lower than those of a standard auto insurance policy. This means you’re paying less every month to get mostly comparable coverage to a traditional car policy.
There are a few reasons that classic car insurance offers lower premiums:
- Classic car insurance has mileage restrictions. That means you can’t drive the car more than a certain number of miles per year (usually less than 7,500 miles annually). The less you drive, the less of a risk that something will happen on the road.
- The car isn’t used as a primary vehicle for commuting. Commuting increases the number of hours and miles on the road, which means more risk of something happening.
Keep in mind that the cost of your premium is generally correlated with the level of “risk” of the driver and the car. Check out ways to save on your classic car insurance here.
Agreed value means that you and the insurer agree upon a fair valuation for your car, which is the amount you’d be paid in the case of a total loss. Most standard auto insurance offers “actual cash value,” which means it usually will pay the depreciated value of the car at the time of loss. The actual cash value is usually less than what it would cost to replace the car, since cars start depreciating the second they drive off the lot.
Classic cars, by nature, appreciate in value with time. You want your insurance to recognize your car as an investment and adjust coverage limits accordingly. You can also re-negotiate the value of your car with your insurer frequently if you’ve restored it or the vehicle has risen in value; a good insurer will allow for ongoing adjustments based on the auto market value of your car.
What we like most about this is that you get agreed value for your car—typically with a lower premium! That means you often get significantly higher coverage limits without paying a proportional pay grade bump monthly, as compared to standard auto insurance. Find out more about the cost of classic car insurance here.
Ability to negotiate
Another benefit of classic car insurance is that sometimes you can actually negotiate the value of your car. You can bring in documentation to prove the value of your car, so you can make sure your insurance limits match your car’s value in full.
Where does the valuation of your classic car come from? We recommend using a mixture of a professional appraisal, car valuation guides (like Kelley Blue Book®), and research from an expert classic car underwriter to come up with the most accurate agreed-upon value for your car. Any valuations you receive you’ll want to document and present to your insurance company.
Expansive and optional coverage
Classic car insurance generally covers the same basics as regular auto insurance, like liability, collision, comprehensive, medical payments, and uninsured/underinsured motorists coverage. But along with the basics, classic car insurance offers a lot of optional coverage options that are specific to the needs of your collector’s car.
Some of the additional coverage classic car insurance offers:
- “Agreed value” for comprehensive/collision
- Restoration coverage (coverage specifically if you are restoring, not driving, the car)
- Spare parts coverage (covers tools and accessories stored separately from the vehicle itself)
- Memorabilia contents coverage (covers additional value pieces like old license plates, dashboard accessories, etc.)
- Traveling coverage (reimbursement for food, lodging, rental car, etc. if the car breaks down while traveling to/from an auto event)
- Auto show medical reimbursement (if you or someone in your party are injured at an event where you are showing your car)
- No attendance required (coverage for your car while being displayed/exhibited, even if you’re not there)
You can learn more about the ins and outs of what classic car insurance covers in this guide: What Does Classic Car Insurance Cover?
Choosing classic car insurance
Classic cars have unique needs, which is why standard auto insurance usually doesn’t cut it. Opting for classic car insurance means lower premiums, higher payout in the case of a total loss, and custom coverage specific for your prized possession.
Wondering if classic car insurance might be right for you? Get in touch with one of our expert InsuraMatch agents at(844) 300-3294. We can help you determine the best type of coverage for your classic car and other assets. It’s our job to make finding insurance fast, simple, and easy, while giving you the peace of mind you deserve.
Talk to an InsuraMatch agent now at (844) 300-3294 to see if classic car insurance is right for you!
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