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.
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.
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:
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.
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 |
Heacock | 6,000 |
According to this table and general data, here is a list of which companies are the best in what aspect:
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:
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.
Heading out of state, whether for a weekend or long-term vacation, can be exciting —…
Tesla, the electric vehicle trailblazer, has revamped our automotive mindset. As Tesla's eco-friendly and tech-savvy…
How can you secure the best medical insurance plan without losing your mind? Let’s explore…
Master finding the best car insurance deals with this easy guide. See how Hugo car…
Are you wondering if dental insurance is really worth it? Let's explore the details with…
Ever felt like navigating insurance policies is as tricky as assembling IKEA furniture? Let’s break…