When the name of a classic car is mentioned, most people think of an old, such as classic Cadillac or Chevy Impala.
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How Much Does Classic Car Insurance Cost?
What is a classic car?
According to The Classic Car Club of America, a classic car is a “‘Fine” or “Distinctive” automobile. American or foreign built, produced only between 1915 and 1948.
The insurance company’s definition of a classic car is a little different. To insurance companies, a classic car is a vehicle that was produced in 1979 or earlier. Classic cars also go by as vintage vehicles, collector’s cars, or antique automobiles.
How much will insuring a classic car would cost?
You may be happy to know that classic auto insurance is way cheaper compared to regular car insurance. The average classic car insurance policy is between $200 and $600 annually, unless your car is considered a high-value vehicle.
Official list of Approved CCCA Full Classics
Why does classic car insurance cost less than regular auto insurance?
Insurance companies base the idea of insuring a classic vehicle on the fact that since it is an old car, and it is irreplaceable, you, the vintage vehicle owner, use them seldom and be driven with special care, not your everyday vehicle.
They also expect you to maintain it with excellence. So, classic auto insurance is cheap because it is far less likely for you to file a claim on your classic car; there is less risk.
What is classic car insurance cost is based on?
Classic car insurance is based on the agreed value of the car. The insurance provider and the classic vehicle owner must sit together and settle on the value of the soon-to-be insured vehicle.
After the value of the vintage car has been agreed upon, you call up your insurance agent and tell them the value of your vehicle, along with some photos and information about the classic car you want to insure.
You are also required to list the people who will drive the classic vehicle and their information. Your agent would call the insurance company with the value you reported.
Most classic car insurance companies are experts on these types of vehicles. So, you don’t have to stress over anything and be sure that settling on an agreed value with your insurer will be fair and smooth.
For instance, you and your insurance provider agreed that your vehicle is worth $5,000. Your premium will be approximately $189 per year.
Now that you fully understand how the value of your vehicle is determined and how it would affect your rates. We should inform you that similar to regular auto insurance, the driver’s age, and driving history will also impact the classic auto insurance rate.
Classic Car Insurance vs. Regular Car Insurance
Generally, classic cars are used differently than everyday cars, so it’s not a wonder that the policy for vintage vehicles differs from the standard auto insurance policy. To be more precise, there are three prominent and noticeable differences:
1. The biggest difference between classic car insurance and regular car insurance is that classic car insurance premium is mainly based on the value of the classic vehicle that the owner and the insurer will agree upon.
If you make a claim, your classic car insurance policy will pay the agreed-upon value of the car. Let us explain with examples in two scenarios for better comprehension.
Say you have a classic car, and both you and your insurance provider agreed that the value of your vintage vehicle is $50,000. If you get into an accident with your classic car, and it is totaled, your insurance company is liable to pay out the $50,000 that they agreed upon.
Now, if you have a Ford Focus that you bought for $50,000, and you had an accident that resulted in your car is totaled, the insurance company will pay you the vehicle’s value based on the age of the car some other factors.
2. Rebuilding and improving the vehicle is one of the charms of owning a classic car, to return it to its previous glory. Over time, you may make many improvements such as replacing broken parts with new and original ones, redoing the inside and the seats of the classic car, or even accessorizing it.
So, when you improve a car, what happens? The value of our car increases. For this, you have to sit with your classic auto insurance provider and agree upon a new and higher value for the improved yet classic car.
3. If you came across a classic car that not much of it is left, and you see in yourself that you can fix it, you needn’t worry about insurance. Classic auto insurance allows you to insure a part of the vintage vehicle.
Before you fully restore the classic car to its former glory, you can opt to insure the parts of the car without insuring the car entirely, and again you must come up with an agreed-upon value with the insurance company.
Restrictions
As we said before in this article, the classic car needs to be treated differently and will receive special treatment., like any other item a collector has. The insurance companies, to make sure the classic car is being well taken care of, have certain limitations or restrictions. Here are the five main restrictions as a classic car owner you must know about:
1. Eligible Drivers
Only and only those who are listed on your policy are allowed to drive the vehicle. You are not permitted to lend it to anyone or invite them to drive the classic car.
If someone other than the people you listed drives the vehicle and has an accident, your insurance company is not liable to pay for the damages.
2. Storing the Car
Just like collectors who store their collectible items in glass cases, insurance companies expect you, the owner of the classic car, to store your one-of-a-kind vehicles in a location that will keep them safe from any kind of danger. You must store the vintage vehicle in a garage or a carport.
3. Limited Driving Time
Many classic auto insurance companies will only allow you to drive your car in the daytime and state the hours you are permitted to have your classic car on the road.
4. Limited Mileage
There are also restrictions on the number of miles you can drive with your vintage vehicle every year. That isn’t a problem, really, because most classic car owners only use their vehicles for special occasions, such as going to car shows, driving in parades, or attending classic car club activities.
5. Limited Use
Usually, some classic car insurance companies have restrictions on how you use your classic car. For example, some will require you to only drive your vehicle to car exhibitions, parades, and other classic car-related activities and nothing else.
Your insurance company will probably tell you what uses are acceptable for your policy, and if not, you must ask to avoid future trouble.
How to get insurance for a classic car?
To purchase insurance for a classic car, you need to contact your auto insurance agent and give them some details about the classic vehicle you have in your possession.
The information you need to provide your agent with really depends on the coverage and the type of car you want to insure.
It would be best to give your agents some photographs of the outside of the vehicle and the engine. Remember, if the classic car in your hands has modifications, you are also required to provide your agent with pictures of the interior, engine, and all four sides of its exterior.
Other information that your agent will need is
- Model.
- Make.
- Year.
- Mileage.
Also, your agent needs the information about the drivers you want to list on the policy, so make sure you have their driver’s license number.
Why should you get insurance for your classic car?
The classic car you have in your possession is absolutely a one-of-a-kind treasure. So, it’s only standard that the classic car is harder to repair or replace. By insuring it, you can rest assured that the treasure you hold is covered according to its value.
As we mentioned, returning a classic car to its glorious form is one of the charms for classic car owners, and most collectors invest not only their money but heart and soul on their classic car.
So, something that is this important deserves to be treated with delicacy and deserves to be insured and protected at the highest level.
