Collecting and restoring vintage cars is a fun hobby, and even an investment, for many. But if you hit the road with your old set of wheels, you need more than just a popular car insurance policy to protect you.
Here’s a guide to insuring your vintage car.
Classic car insurance, in particular, protects your classic, antique, exotic, or rare vehicle. It works like a regular car insurance policy and offers a liability policy, medical bills to others involved in an accident, and property damage. But it also includes special features of the policy. That helps you maintain the price of your car without having to spend a lot of money.
“If you rarely drive your old car, antique car insurance could be a cheaper way to insure your assets than popular coverage,” says Cassie Sheets, a specialist journalist at Insurify.
Standard car insurance only protects your car up to its actual salvage price. If you cover your car, your insurer will reimburse you for the price of your car at the time of the incident. So until you file a total loss claim, you won’t know how much you will be compensated for your car, and in most cases it will be much less than what you paid.
Antique car insurance uses the agreed-upon price method. This sets the price of the car at the time the policy is written and is reassessed each year on the policy’s anniversary.
“The agreed price is tailored in particular to your car: what condition it is in, how many kilometers it has traveled, the history of the vehicle, everything related to it and its price. Everything is customized so you know exactly what you’re getting for a total loss. , as opposed to the real-money price,” says Bryant Kolle, regional vice president at Hagerty, a provider of vintage auto insurance and an organization of car enthusiasts.
Classic car insurance companies use criteria to define an antique car. Age and frequency of driving are two important factors, but the type of vehicle and its condition can also be assessed.
American Collectors Insurance, for example, offers antique car insurance for cars that are at least 25 years old and in good working order. Vintage farm tractors, military cars and vintage hot rods are eligible.
Many antique auto insurance corporations view antique cars as collector’s items and not as drivers.
“Classic or collector’s insurance is more complicated to download than general car coverage: you have to have certain documents and images to give to the car,” says Michael Silverman, founder and president of Silver Lining Insurance, an independent insurance firm in New York City. .
Policyholders may want to meet mileage limits and/or find out they have another car to use on business trips or other routine trips, for example. They also can’t use the old car for high-risk activities, such as racing or offline travel. -Road driving and you will need to have a smart driving record.
Classic car insurance uses an agreed pricing policy of a real money pricing policy.
If you have car insurance and your car suffers a total, your insurer determines the price of the car (its real-money price) at the time of the accident. You get this amount, minus any deductible you owe.
The actual financial price of a new car will likely be much lower than the original acquisition price, as the price of a typical car tends to decrease with every mile you drive. The average price of a vehicle between two and six years old has decreased by approximately 20% in 2023, according to data from Black Book and Fitch Ratings. In other words, a car you purchased for $30,000 may be priced at just $24,000 a year later.
On the contrary, older cars tend to maintain or increase their price, so insurers negotiate their price with the car owner without considering depreciation. In the event of a global claim, the insurer reimburses the agreed price of the car (less the excess). Since depreciation does not exist in traditional auto insurance, it can result in a higher insurance payment.
Quick tip: If you make significant innovations or modifications to your old car after purchasing your policy, request a new appraisal so that the agreement reflects the innovations.
Classic car insurance covers the repair and replacement of the vehicle up to the policy limit for inclement weather, falling objects, theft, vandalism, etc. (total coverage).
It also covers repair and replacement up to the limit of your policy in the event of damage to the vehicle or object, regardless of the latter’s fault (collision coverage).
A liability policy is required by law for all automobiles and covers damage caused by motive power to other automobiles and property, as well as physical injuries. Minimum auto insurance policy limits vary by state.
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There are a number of additional covers available for old car insurance policies that cover urgent problems or cases faced by old car owners.
The replacement portions policy, for example, can provide up to $500 or more to update portions you don’t use. The souvenir policy can increase the price of antique plaques and other heirlooms.
Some insurers offer inflation coverage at no additional charge (a valuable benefit as most older car models increase in price over time) and give owners the right to keep their disabled vehicle if it is totaled.
Conventional auto insurance is less expensive than a popular policy, largely because you drive your vehicle less frequently, which reduces the risk of accidents.
However, conventional car insurance policies can be more expensive than insurance policies if you own an exceptionally rare vehicle. In this case, the agreed-upon price (i. e. , your policy limit) will be higher, which will increase your premium.
Companies that offer vintage car insurance employ specialists capable of responding to requests to repair or upgrade a unique or rare vehicle.
“The claims adjusters who handle those claims have a thorough understanding of the vintage car market and the repossession processes. They work intensively with the owners to make sure the vehicle is restored to its pre-loss condition, with original parts and skilled labor,” says injured Barry Goldberg. and twists of fate attorney in the Los Angeles area.
Find data on the monetary stability of the insurance company in a database such as AM Best. A smart credit score indicates that the company has a history of paying visitor claims temporarily and effectively.
Also take a look at visitor reviews, sites like ConsumerAffairs and the Better Business Bureau. By reading these first-hand testimonials, you will get an intelligent idea of how the company handles the complaints procedure and general policy issues.
You may want to find antique car insurance through your number one auto insurance provider. Major national brands, such as State Farm and Safeco, offer antique auto insurance as well as popular policies. Some of the top specialty providers include American Collectors Insurance, American Moderno, and Hagerty.
Your policy limits are adjusted to your usage and the condition of the car. For example, if you plan to drive your vintage car every weekend, a policy with mileage limits, such as 5,000 miles per year, probably wouldn’t be a good option. adapt.
Also consider your deductible options, add the amount, and whether it applies annually or on a per-incident basis. This is the amount you must pay out of pocket before your insurance kicks in.
Also compare a company’s additional or complementary coverage, such as towing or roadside assistance.
Car insurance premiums are sometimes lower for older cars than for ordinary drivers. This is because the risk of theft and injury is lower, as you drive less and (ideally) store your vehicle in a safe position when you are not on the road.
However, your annual mileage could be your premium, as well as the agreed price of your old vehicle, your excess, coverage limits, and certain additional benefits. Personal factors, such as your age, credit history, and where you live, also play a role. Living in a high-crime area, for example, will sometimes result in a higher premium.
One of the most important points in premium pricing is your driving record. If you’ve had one or more fault-based or injury tickets that resulted in an insurance claim in the last 3 years, you’ll most likely pay more.
If you use an insurer that offers other lines of coverage, such as home insurance, you may be able to save on premiums by bundling your policies. However, as a general rule, corporations that focus solely on vintage car insurance will offer more advantageous policy options.
You may also be eligible for discounts if you have not had a recent traffic ticket or traffic accident.
The average annual cost of car insurance in the United States is over $1,000 and continues to rise. The cost of antique car insurance depends on the car’s condition, its market value, and its driving record, among other things, but it is unlikely to exceed the charge of insuring a popular driver.
Baily Insurance, which offers antique auto policies in Pennsylvania, Ohio, West Virginia, and Maryland, reports that a typical insurance policy can charge anywhere from $200 to $600 per year. This reflects the lower risk of insuring a vehicle that is driven safely. although only occasionally and very well maintained.
The procedure for filing an insurance claim varies by provider, but follow those steps:
Immediately after the incident, take photographs of all visual damage to your vintage car. You will need to describe, in writing or by phone, exactly what happened and when. You may want to provide a copy of any police reports that corroborate your story.
Classic cars require more common maintenance than newer cars. Anyone who owns a collectible is likely to take great care to keep it in good working order, possibly including checking the brakes, examining the tires, replacing the battery, washing and detailing it normally, and replacing the fluid assembly.
It is more productive to leave your car in a covered, locked garage or storage room rather than parking it on the street or exposed driveway, as it is protected from the weather and theft.
Many antique car insurance companies have basic garage criteria that you’ll need to meet to qualify for the policy. Make sure you meet the provider’s specifications before signing your insurance contract, or your policy may not be valid.
Conventional car insurance offers car enthusiasts an affordable policy for a valuable asset.
“Specialty insurance policies serve owners by protecting the price of the vehicle, ensuring maintenance is performed with the correct parts, and providing customized endorsements that take into account the specific use of the vehicle,” Kolle says.
If you own an older car that you plan to put back into service, you may not yet be eligible for a comprehensive auto insurance policy. Consider purchasing partial insurance first, as some insurers do not insure cars in poor condition.
If you plan to drive your vintage car regularly, you may want to find an insurer with no limitations or annual mileage.
The Better Business Bureau, ConsumerAffairs, and Trustpilot are smart internet sites for checking visitor reviews of vintage car insurance companies (not all providers have a profile on each and every platform).
These are the average visitor ratings of some vintage car insurance as of July 2024:
Most visitor reviews of traditional auto insurance companies detail personal claims experiences, quick visitor service interactions, or how easy (or difficult) it is to get coverage.
Keep in mind that any negative or positive narrative about working with a specific insurer should be a starting point for your own research.
Whether you drive your vintage car short distances on the weekends or do it at car shows several times a year, vintage car insurance is a wonderful way to protect your wallet. For a low monthly cost, you can get assistance paying for your vehicle’s maintenance. caused by inclement weather, theft, vandalism and accidents.
Remember, the traditional auto policy is not intended for high-use vehicles. Sometimes it’s designed to protect the price of vintage cars that are conscientiously maintained and stored and found on the road as little as possible.
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