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Classic Car Insurance: What Makes It Different from a Normal Insurance

Updated: July 18, 2018

For people who like to collect vintage cars, getting classic car insurance is a very important step in protecting this investment.

Classic car insurance does differ from regular auto insurance in many ways, because of the unique circumstances in these cases.

While regular auto insurance applies to everyday vehicles, classic car insurance is reserved for vintage vehicles that you will only drive once in a while.

There are certain qualifications that the driver and vehicle must meet in order to get a classic car insurance policy.

It is possible to get cheap auto insurance for a classic car, while still protecting the investment.

What is Classic Car Insurance?

Classic car insurance is a specific type of auto insurance that individuals purchase to protect their vintage or valuable vehicles. For example, someone with a 1948 model Ferrari will not need the same type of auto insurance as someone driving a 2010 model Honda Civic.

While it is possible to get a regular auto insurance policy for a classic vehicle, it does not make sense for a number of reasons.

In simple terms, classic cars are not driven or treated the same way as regular road vehicles, which is why this special type of insurance makes sense.

While it is possible to get a regular auto insurance policy for a classic vehicle, it does not make sense for a number of reasons. Most importantly, owners cannot get sufficient protection for their classic vehicle with a regular policy.

The right classic car insurance policy is both affordable and protective, which means that someone does not have to pay through the roof for the privilege of ensuring that their valuable vehicle is protected through car insurance.

One of the biggest reasons that classic car insurance exists is because these vehicles are only driven periodically. Very few people own classic cars and use them on their daily commute.

How Does Classic Car Insurance Differ from Normal Insurance?

A regular car insurance policy will include liability, comprehensive and collision coverage. This is designed to protect both the passengers, vehicle as well as other people on the road. In contrast, classic car insurance is focused on protecting the value of the vehicle, because it is insuring a vintage model.

Many policies also have a rider that allows the insured individual to have a newly purchased vintage vehicle covered by the same policy for up to $50,000.

When getting classic car insurance, it is important to have the vehicle valued. For example, a Ferrari purchased 30 years ago for $5,000 may now have a value of $30,000.

A regular insurance policy will not cover the car for $30,000, but most classic car policies include guaranteed value coverage.

Many policies also have a rider that allows the insured individual to have a newly purchased vintage vehicle covered by the same policy for up to $50,000. This coverage usually lasts for 15 to 30 days, giving them enough time to either sell the vehicle or get a new policy for it.

Coverage is also available for spare parts and roadside assistance. These are useful add-ons, because vintage cars regularly require maintenance, while they are also likelier to break down on the road than an average road vehicle.

Who Needs Classic Car Insurance?

In simple terms, anyone who owns a vintage vehicle will need classic car insurance. However, this insurance only applies to vehicles that have a certain value. If your old car is valued at less than $10,000, you probably do not need classic car insurance.

If you plan on driving your classic car on the road at least one or two times per week, you probably need some form of roadside assistance in your classic car insurance policy as well.

The reasoning behind classic car insurance is to have a way for people to protect these expensive and valuable assets.

Classic auto insurance includes guaranteed value coverage, which means that if you total a vintage car while driving, the insurance company pays out its full value – not the amount you paid for the vehicle many years ago.

People who have classic cars probably frequent auto road shows as well. At auto road shows, it is common to drive your car to demonstrate its quality. This is why classic auto insurance policies include medical reimbursement for injuries suffered at auto road shows.

If you plan on driving your classic car on the road at least one or two times per week, you probably need some form of roadside assistance in your classic car insurance policy as well.

Ways to Save Money on Classic Car Insurance

The best way to save money on a classic auto insurance policy is to demonstrate that you are not driving this vehicle on a regular basis. If you have cheap auto insurance for another car, which is your primary vehicle, this shows the insurance company that you are less likely to damage the classic car.

While guaranteed value coverage is an option, you can lower the coverage and pay less for premiums.

Changing the level of coverage is another way to bring down the premium costs of classic auto insurance.

While guaranteed value coverage is an option, you can lower the coverage and pay less for premiums. This means you are paid less in the event of your car being totaled in an accident.

Decreasing the policy limits for spare parts coverage is also another way you can save on classic auto insurance. While this may result in more out of pocket expenses for getting spare parts, it saves you money on insurance.

Individuals with other policies from the same company, and those who can display good driving records, are eligible for further discounts on their classic car insurance policy.

Where to Get Classic Car Insurance

There are a few options for people who want classic car insurance for their vintage vehicle.

Getting two policies from the same company is a great way to get discounts on insurance for multiple vehicles.

One option is to go with a regular insurance company’s classic car policy. This is helpful if you already have auto insurance from a reliable company, and this company offers a classic policy.

Getting two policies from the same company is a great way to get discounts on insurance for multiple vehicles. It is also easier to deal with one company for all your policies.

However, some individuals will go with a company that specifically deals with classic car insurance. This is useful if you are a vintage car collector, because these specialized companies often have better coverage terms for lower prices – if you have multiple vintage vehicles.

As an example, companies such as Esurance offer classic car insurance. Esurance also has regular auto insurance policies. In contrast, individuals have the option of getting their classic car insurance from companies such as Hagerty, which specialize in providing the best level of classic car insurance possible.