No one can put a cost on your classic car because some things are just priceless. But are they protected against mishaps?
No matter what car you have, if it’s an old classic car, it’s priceless. And not just that, there is a lot of sentimental value attached with old cars; a family car passed down, or your grandfather’s first ever car- whatever the case, you love it.
And over the years you have taken lots of care, driven it very carefully and kept it top-notch. You would probably flip out if the car got even a slight scratch. When you drive it on the road, you need to make sure that it is fully protected and covered, but let’s be real, you can’t really prevent accidents, can you? This is why you need classic car insurance. But let’s start with the basics.
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What is a Classic Car?
A classic car is an automobile that was manufactured many years ago, and is kept in wonderful condition.
Cars like an interwar 1926 Standard V, a Daimler DB18 Drophead Coupe (the type used by Winston Churchill to campaign in in the 1940s), a 1950s Austin-Healey or even a 1970s Lotus Esprit, 1994 Ford Mustang SVT Cobra, 1966 Ferrari 330 GTC, 1941 Willys Americar hot rod, original Model T from 1923, or any other coveted collector car is considered a classic car and can be insured.
Classic Car Insurance Requirements
You have a classic car. Good. Now you need to get it insured. A lot of people often get confused as to why they should opt for a classic insurance and why a traditional option will not work. Since classic cars are kept with a lot of care and are barely out on the road, the insurance rates and premiums are a lot cheaper than cars with a traditional auto insurance plan.
Typically, this eligibility criteria is mandatory for you to have classic car insurance:
- Your classic car isn’t your only car- you should have another car used in your daily routine too
- Your annual mileage is very low- usually between 2,000 and 5,000 miles.
- The vehicle is stored in a garage, on a drive or in a specialist lock-up.
- You must usually be 25 or older.
- Have a good driving record and at least five to 10 years of experience driving
- Have no more than one at-fault accident or moving violation within the previous three years
- Agree not to race your classic car or drive it on a race track
- Own a collectible that is in good shape and intended for normal driving.
Can you get Full Coverage on a Classic Car?
You can get full coverage on a classic car which will essentially cover:
Liability coverage: In most states, this is the type of coverage required by law. Your liability coverage includes both bodily injury liability, which pays for costs associated with injuries to others and property damage liability, which pays for damage to things, like other cars, fences or even for ruining someone’s kiosk on the roadside. You will have to pay for the damages you cause to other people, which will be covered by your insurance policy.
Collision coverage: This helps cover the cost of repairing your classic car if you’re involved in an accident. A collision is defined as an impact with another vehicle or stationary object, but rollovers are also covered by collision coverage.
Comprehensive coverage: Fire, theft, vandalism, floods, broken glass, falling objects and more can be covered with comprehensive coverage on your classic car policy. In the event of a covered claim, damage to your vehicle is covered using an insured value that isn’t adjusted for depreciation.
Medical coverage: This is for your own injuries, but insurance rules for medical coverage can vary greatly from state to state and from policy to policy.
You can get full coverage on your car, but do you really need it? Classic cars are rarely driven on the road and are barely driven in rush areas, thus the risk of getting into an accident is decreased. Having full coverage may seem amazing, but often people don’t realize that they will have to pay more in premiums as compared to a partial coverage option.
Classic Car Insurance Monthly Payments
Monthly payments for classic cars depend on the kind of coverage you require and usually what companies you choose.
|Company||Annual mileage allowed for pleasure use|
|American Family, Grundy, Hagerty and J.C. Taylor||Unlimited|
|American Collectors||2,500, 5,000 or 7,500|
|American Modern||1,000, 3,000, 6,000 or unlimited|
|American National||10,000 or unlimited|
According to this table and general data, here is a list of which companies are the best in what aspect:
- Best Specialty Classic Car Insurance: Hagerty
- Best Major Provider Classic Car Insurance: State Farm
- Best Classic Car Insurance with Extra Perks: American Modern
- Best Classic Car Insurance for Daily Drivers: Safeco
What if my Classic Car is totaled?
In the world of insurance, a car being totaled means total loss. If your classic car was totaled because of an accident, fire, theft or any reason that is covered by your insurance policy, you will be compensated. This is because classic cars don’t depreciate in value like normal cars do.
If your classic car is totaled, essentially you will have two payout options:
- Agreed value is the amount you and your car insurance company agree on in advance for the value of the vehicle. This is the amount the insurance company will pay if your car is totaled (minus the deductible amount). This is something decided when the policy starts, but if the vehicle appreciates in value, you could change the agreed value during the policy too.
- Stated value is the amount that is “stated” when you take out your classic car insurance policy. You’ll tell your insurer what the car is worth (with documentation for support) and your car will be insured for that amount. However, if your car is totaled, your car insurance company can choose to pay you either the stated value or the actual cash value of the vehicle, whichever is less.
Since classic cars are kept with love and are driven with care, they are generally low-risk. The insurance company understands this and rewards policyholders with a low amount of premium. As opposed to a traditional insurance policy on a regular car, the risk of getting into accidents is more, thus insurance companies name them as ‘high-risk’ borrowers. So the rate of premiums is also more.
A classic car insurance will give your car the protection it needs and that too on a very low cost. The best way you can go about it is pay the premiums on time and make sure you never miss a payment. If the policy lapses, you could find yourself in uninvited trouble.