Everything You Need To Know About Classic Car Insurance

One thing that classic car owners can never overlook is insurance. But vintage vehicles require a different insurance policy than the same standard auto insurance of a daily driving vehicle.

Below, we’ll explain everything you need to know about classic car insurance, like why you need it and what a car needs to qualify for the special insurance policy.

What Is Classic Car Insurance?

Classic car insurance is what it sounds like—a special insurance policy specifically for older, classic cars different from standard auto insurance. Like any standard auto insurance policy, classic car insurance covers liability, comprehensive, and collision.

But as we all know, classic cars are different from typical daily drivers because they can increase in value instead of decrease as they age. So, if you’ve got a classic car that meets the qualifications for special insurance from a provider, your vintage vehicle is covered in case of collision or theft.

Do I Need Classic Car Insurance?

Yes, almost every state in the US requires that a vehicle on the road have auto insurance, including classic cars. Even if you only take your vintage car out for a spin once a year, if you’re stopped and found driving without insurance, you could receive a fine or even have your license suspended.

Besides the legal requirement, having insurance on a prized asset like a classic car makes good business sense. Even if you rarely take your older car to car shows or swaps, insurance will protect it if it accidentally gets damaged during an event.

Why Do I Need a Special Policy for My Classic Car?

As we mentioned, older vehicles are unlike regular cars and require different policies than standard auto insurance. Older cars are more expensive to maintain and repair as not every mechanic has the training to work on older cars, and the vehicles may require older, harder-to-find OEM replacement parts.

Also, classic cars get valued differently than typical cars. Even a classic car not in the best condition may be incredibly valuable because of its rarity. That’s why classic car insurance requires a professionally appraised and agreed value that considers the many different factors of a classic car’s worth.

How Does Classic Car Insurance Work?

So, everyone who owns a classic car needs insurance, but how does classic car insurance work? While classic car insurance may be a unique policy, it basically works the same way as a standard auto insurance policy.

The owner provides information and selects the coverages that suit their budget and needs. The owner will provide information, and the insurance provider will use a professional appraiser to come to an agreed value on the vehicle to serve as the basis for the insurance policy value.

What Is “Agreed Value” for Classic Car Insurance?

A unique aspect of classic car insurance is the vehicle’s agreed value. As we’ve mentioned, classic cars have different factors for their value than standard cars—there’s usually no sticker price that the owner can point to as the basis of its value.

The agreed value of a classic car is the value agreed upon by the vehicle’s owner and the insurance provider. The insurance provider will conduct an independent evaluation of the car. At the same time, the owner provides information like maintenance records, repair history, storage and security facilities, how often they use it, and more. With this information, the owner and insurance provider will negotiate to come to an agreed value and move forward with the policy.

What Are the Requirements for Classic Car Insurance?

Just because you have an old vehicle doesn’t mean that it qualifies as a classic in the eyes of an insurance provider. To be eligible for classic car insurance, a vehicle and its owner must meet specific parameters such as age, usage, storage, and more.

Vehicle Age

First, the car must be old enough to be classic or vintage. However, the required age for a vehicle to get considered a classic varies by insurance provider. Some providers require a vehicle to be at least 25 years old, while others will classify a car as young as 10 years old as a classic if it meets other considerations.

So, if your car isn’t old enough for one insurance provider to consider it a classic, you may have better luck with another. Also, if your car is old enough, it may qualify for more exclusive antique or vintage car insurance, which is different from classic car insurance.

Vehicle Use

The second factor the insurance provider will consider is the vehicle’s usage. A classic car can’t be your daily driver if you want it covered by classic car insurance.

If the vehicle is your primary form of transportation, it’ll require standard auto insurance. Often, classic car owners have an alternative vehicle for daily transport or some other form of primary travel and proof that they only put minimal mileage on the classic car every year.

Vehicle Storage

Another key consideration with classic car insurance is where it’s primarily stored. Many insurance companies require that a classic car have a secure and private storage residence like a locked garage or storage unit.

Some will allow for other, less secure storage options like parking garages, carports, or trailers, but not all. Remember that a classic car is a valuable collector’s item, like jewelry or art, so insurance providers must ensure the owner has taken precautions for its security and safety.

Driver Eligibility

It’s not just the car that must meet specific requirements for classic car insurance, but the driver as well. Insurance providers typically only offer classic car insurance to those with relatively good driving records.

A classic car owner doesn’t need a spotless driving record, but it must be good enough for the insurance company to consider you a reliable driver and careful owner. Some insurance providers are stricter with driver eligibility and may require proof of a clean driving record over the past five years or longer. Some insurance providers have age requirements, so if you’re 25 or younger, you may not be eligible for a classic car insurance policy.

Conclusion

That’s everything you need to know about classic car insurance, from how it works to its requirements. Remember, if you’re searching for classic cars online in the USA, Ideal Classic Cars has an extensive selection of beautiful vintage vehicles to choose from. Shop our inventory online or stop by our Venice, Florida, showroom today!