What You Should Know About Car Insurance for Classic Cars

Owning a classic car is more than just a hobby; it’s a passion that requires careful protection. Insuring a vintage or classic car differs significantly from insuring standard vehicles, as these cars are considered assets with unique values and needs.

What Is Classic Car Insurance?

Classic car insurance is a specialized type of coverage designed for vehicles classified as “classic” or “antique.” These policies account for the rarity, value, and limited usage of these cars.

Typical requirements for eligibility include:

1. Age of the Vehicle: Usually 20–25 years or older.
2. Usage Limits: Primarily for car shows or leisure, not daily commuting.
3. Storage Conditions: Secure, indoor storage is often mandatory.

How Does Classic Car Insurance Differ?

1. Agreed Value Coverage
   Unlike standard policies that base payouts on actual cash value (ACV), classic car insurance uses “agreed value.” This ensures that you and your insurer agree upfront on the car’s value, which you will receive if the car is declared a total loss.

2. Limited Mileage Plans
   Many policies offer lower premiums because classic cars are typically driven less often, reducing risk.

3. Specialized Repairs and Parts
   Coverage often includes access to skilled mechanics and replacement parts tailored for vintage cars.

Factors That Influence Premiums

• Car’s Value: Higher-valued cars typically cost more to insure.
• Owner’s Driving Record: A clean driving history helps lower costs.
• Storage Location: Garaging your car in a safe, insured facility reduces risks.
• Modifications: Extensive upgrades or customizations might raise premiums.

Steps to Insure a Classic Car

1. Evaluate the Car’s Value
   Get a professional appraisal to determine the agreed value of your vehicle.

2. Choose a Specialized Insurer
   Work with insurers who specialize in classic cars, such as Hagerty or Grundy, for tailored policies.

3. Understand Usage Restrictions
   Be clear on mileage caps, storage requirements, and acceptable usage.

4. Bundle Policies
   If you have multiple vehicles or insurance needs, bundling policies can save you money.

Cost Comparison Table

Why It’s Worth It

Classic car insurance provides peace of mind by preserving your car’s financial and emotional value. Whether it’s a 1969 Mustang or a vintage Corvette, this coverage ensures that your investment is protected.

By securing specialized insurance, you safeguard not only the vehicle but also its historical significance and your personal passion for its legacy.

For expert assistance in insuring your classic car, contact Toby Hansen Agency today!