Whether it is a 1928 Ford Coup or a 1931 Ford Roadster, classic cars can be worth quite a lot. That is why it is important to always be protected. And because you never know what might happen, you will want to buy insurance in case of emergency. But choosing from the wide variety of classic car insurance options can be a daunting task. In this resource guide, we have you covered.
Regular or Classic Car Insurance?
According to studies, around half of antique car owners put their vehicles on standard car insurance. This is a big mistake. Common car insurance is based on the idea that the car is losing value over time. With classic cars, it is the exact opposite: their worth actually increases. Most insurance companies know that classic car owners take good care of their vehicles: they get it frequently checked, wash and clean it, and do not drive it as often. If your Model A is your baby, you want to treat it right. Thus, in general, premiums tend to be 20% to 40% lower for classic car insurance than regular plans.
How it Works
When you first purchase a classic car and go to the insurer, your vehicle first needs to qualify as antique. Although each insurance company has different rules, to meet the requirement, the car usually needs to be of a certain age or model. Then, based on a classic car appraisal or comparable car type, you agree to a “replacement value” which is the market price of the vehicle. If anything happens, you will receive this amount.
Typically, each insurance plan contains some restrictions that owners must follow to maintain the plan. They can include:
- Annual mileage restrictions: usually no more than 5,000 miles per year
- Own another vehicle for daily use
- Store the classic car in a garage
- Show a clean driving record
- Be over 30 years of age
Classic Car Insurance Providers
As mentioned above, every insurance company has its own policies for covering classic cars and trucks. We recommend the following four providers that are dependable and offer extensive services:
Hagerty is operated by fellow classic car owners and enthusiasts. They take advantage of their industry expertise to provide a guaranteed value that makes sure you receive the amount you signed up for and deserve. Every policy is custom designed for each client based on his or her vehicle and financial history.
Insuring over $1.2 billion worth of classic cars and 100,000 customers in 42 states, Classic Collectors enjoys an “A” rating from both A.M. Best Financial and Standard & Poors. They offer total protection at competitive rates with their Drivers Club program.
Each letter in Chrome stands for a different type of vehicle they protect. They cover Classic cars over 25 years old, Hot Rods, Replicas, Original unrestored cars, Modified/custom cars and Exotic cars worth at least $100,000.
Covering all types of collector vehicles, American Collectors Insurance offers different mileage plans, a zero deductible option, flexible usage and support on the agreed value of the car.