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When you've put time and money into your classic car, you want to make sure it's protected. Classic car insurance does that by providing coverage unique to classic car ownership. You can sign up for classic car insurance by purchasing a policy from an insurer for your qualified vehicle.
Start by determining whether or not your vehicle meets the qualifications of a classic car according to insurance providers. If it does, you can purchase a policy specific to the vehicle through a broker, agent or directly from an insurer.
What Is Classic Car Insurance?
Classic car insurance is a policy for your classic, antique, modified or luxury vehicle. It includes typical types of coverage you'd get with a standard insurance policy, like bodily injury liability and property damage. But it also protects the special value of a collector-grade vehicle. It's intended for secondary vehicles rather than for the car you drive every day. You can purchase classic car insurance separately from standard car insurance policies.
Defining your vehicle's value is key to classic car insurance. This type of insurance uses what's called agreed value. With an agreed value policy, you work with the insurance company to decide on a value for your vehicle. You may use photos, appraisals or documentation for things like part value to reach an agreed-upon value with the insurance company, which then determines your rate.
Unlike other types of vehicles, classic cars often appreciate in value due to their age and rarity. Agreeing on a value means the vehicle won't be undervalued if a claim is filed.
Classic car insurance factors in the specialized features and costs of insuring a classic vehicle, such as:
- Extra costs for repairs
- Extra costs for rare replacement parts
- Specialized towing costs
- Storage requirements
- How often the owner drives the car
Benefits of Classic Car Insurance
Those extra considerations mean extra benefits. Classic car insurance offers some benefits to classic vehicle owners, such as:
- Lower deductibles
- Agreed value coverage, meaning there is no depreciation when a claim is filed
- Adequate coverage for specialized repairs and transport
If you want to take advantage of the benefits of classic car insurance, here's how to get started buying a policy.
1. Find Out if Your Car Qualifies As a Classic Car
Classic cars are not simply "old." They could be antiques, hotrods, modified vehicles, exotic or luxury cars, muscle cars, classic trucks or vintage military vehicles. The Insurance Information Institute defines classic cars as vehicles with increasing value, possibly exceeding their original sale price.
Insurance providers often require classic cars to meet the following qualifications to be eligible for coverage:
- Utilization: The vehicle cannot be used for everyday driving. Owners may need to show that they have another, primary vehicle. There may also be mileage restrictions.
- Garaging: Owners generally must provide proper storage to protect the vehicle. Individual insurers may have different rules as to what qualifies as proper storage.
- Driving history: Owners typically must have good driving records.
2. Get Quotes and Compare Coverage Options
Before purchasing a classic car insurance policy, you can get quotes to compare. Both insurance brokers and agents can help you get quotes. You can also request quotes directly from car insurance providers yourself, typically online.
Once you get the quotes, compare coverage and price. Simply going for the least expensive option may leave you with poor coverage. Seek the best coverage to price ratio when possible.
3. Determine Agreed Value
Provide documentation on the history, service and updates of the vehicle along with things like photographs. Insurers may also require an appraisal to help come up with an agreed value.
How to Get a Classic Car Appraisal
To get an appraisal done:
- Connect with an appraiser. Verify that they work with classic cars and are knowledgeable about your specific vehicle model.
- Schedule the appraisal so they can look at the vehicle. You may be able to meet with them in person or virtually.
- Provide documentation related to the car. Some appraisers may be able to complete the appraisal from photos and documents alone.
Appraisals may cost several hundred dollars but can be well worth protecting a greater value in your vehicle.
How Much Does Classic Car Insurance Cost?
Classic car insurance tends to cost less than a standard auto policy because classic vehicles typically experience less risk. They are likely garaged and on the road much less than vehicles driven daily, and owners tend to maintain them better.
On average, prices for classic car insurance may be about 30% less than the cost of a typical car insurance policy. Classic car owners may expect to pay $200 to $600 per year.
That said, pinning down a price on classic car insurance is difficult because each policy is written for a particular vehicle, location and owner. The coverage limit is largely based on the determined value, so costs are individualized.
Keep It Classic With the Right Policy
Shopping for car insurance can be daunting, and especially so when looking for a specialized policy like a classic car insurance policy. You can save some time by letting someone else do the shopping for you.
You can use Experian's auto insurance comparison tool to get an apples-to-apples comparison of your current policy against policies from over 40 of the top providers to find available savings for the same coverage. See what you can save today.