Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...

  • Classic cars have special considerations when it auto insurance
  • Definitions of a classic car will vary from one provider to the next
  • There are dozens of companies specializing in classic car insurance, so shopping around is easy

If you have a car that you’ve carefully restored and treat like a baby, then you know how important it is to find the right insurance program.

You may be worried about the potential cost of insuring something that’s irreplaceable to you but it’s generally more affordable than you may realize.

If you’re in the market for coverage on a 1965 Mustang or a Triumph Spitfire, then learn more about requirements of insurance companies and what types of programs are available.

Also, be sure to compare auto insurance quotes to make sure you get the best rate. Enter your zip code here to begin.

Agreed Value is Typically Worth Every Penny

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Standard insurance plans work on the assumption that all cars depreciate but it’s hard to know the value of a classic car.

The rarity and condition play a vital role in the overall value, and most adjusters aren’t equipped to make this determination.

While a 1985 Honda CRX won’t carry much value on the street because there were so many of them made, the Mazda RX-7 is going to have a different resale value.

This is why most owners of classic cars opt for Agreed Value plans. These plans are based on an agreed value based on written statements or independent assessment.

In the event that your car is damaged in an accident or another event, the value basis would be what you and the company have previously agreed on. This amount should be reviewed annually to take into account appreciation or improvements.

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Ask About Smart Policy Options

There are some unique policy options that are available for classic cars. While your standard plan may have towing insurance, you can go with guaranteed flatbed towing if you own a rare automobile.

Another big concern with owners is the high cost of replacement parts. This is why companies offer coverage for spare parts and tools. Depending on the type of vehicle you’re collecting, you may want to add one or both of these coverages to your plan.

Remember that your homeowner’s insurance won’t necessarily cover your car while it’s in the garage. While this may be the case with daily drivers, most companies will only cover the classic car if there’s a special ride on the policy.

In the event that something falls on your precious car while it’s in storage, you want to know that it’s going to be covered.

Rather than dropping full insurance on your classic, just ask about a special plan that covers the car while it’s parked in the garage over the winter months.

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Beware the Age Limit and Other Requirements

Insurance companies offer this highly specialized coverage for certain cars, so yours needs to fall into certain categories. In general, your car will fall into one of three categories:

  • Veterans – Cars that were created prior to 1905
  • Edwardian – Vehicles manufactured from 1905 to 1918
  • Limited – Those cars in production between 1919 and 1970

If your car was manufactured after 1970, then it may need to meet certain criteria in addition to the age. Insurers typically reserve this type of protection for foreign sports cars, two-door sports cars, those with big block V8 engines, and automobiles with unique body shapes.

A general rule of thumb is that cars must also be at least 15 years old to be defined as a classic. However, each company is able to set their own definitions, and the laws may also vary by state.

For registration purposes, the state of Massachusetts says that classic cars must be at least 25 years old, but other states have an age threshold of 15 years. There are also a few other requirements that your insurance company may have in place.

Adult Drivers

Dependent children typically cannot invest in classic car insurance. In fact, most companies want the insured driver to be the age of maturity as defined by the state. In most states, this is 18 years of age, but it’s 21 in Mississippi.

Daily Drivers Not Allowed

Legally, you can drive to and from work in your 1935 Auburn Speedster, but the insurance company won’t cover it as a classic car in that case.

In order to qualify for this type of protection, you must have another form of transportation for errands and work. The classic cars can only be driven for pleasure, shows, or repairs, and they usually have a mileage limit of 5,000 miles per year.

Storage Considerations

Most people want their classics tucked safely away in a garage, and the insurance companies are not any different. In fact, they may want to see pictures of your designated and secure garage to prove that you have the appropriate space.

If a garage is not an option for you, then you can look for special facilities that provide temperature-controlled storage options specifically for classic automobiles.

Go For Full Coverage

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Once your car is approved for classic insurance, you’ll have to decide on the type of protection you want. Even though your classic may be paid for in full, you still want to carry collision and comprehensive on it.

The fact is that classic cars simply cost more to repair due to the scarcity of parts, and you don’t want to cover those high repair bills on your own.

If you’re worried about the cost of insuring your classic car, then you’ll be pleased to know that it’s actually quite affordable.

Companies can offer affordable rates because the cars aren’t typically driven and are garaged in secure locations. They’re better protected from floods, hail, and accidents as a result.

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Shopping Around for Coverage

There are many specialty insurance companies that focus solely on classic cars, but the regular company you trust with your other cars may also be equipped to help you.

Provided they offer Agreed Value plans and can fit in the special coverages like parts and tools, your current company can probably serve you. It will be worth your time to get a quote from them because you may then qualify for multi-car discounts or other savings.

Be sure to shop around and check the plans with different companies. Saving is easy when you take the time to compare rates and plan features. You can then get the coverage your classic car deserves while signing up with a company that will be easy on your budget.

Compare quotes for auto insurance today.

References:

  1. https://www.irmi.com/online/insurance-glossary/terms/a/agreed-value-coverage-option-or-provision.aspx
  2. http://www.insurancejournal.com/magazines/features/2012/03/05/238126.htm
  3. http://www.finweb.com/insurance/5-classic-car-insurance-facts-you-need-to-know.html#axzz4TUyDe3YB
  4. https://www.thebalance.com/what-age-of-majority-means-its-definition-and-usage-882666
  5. http://money.howstuffworks.com/personal-finance/auto-insurance/insurance-for-classic-cars1.htm