Classic Auto Insurance vs. Regular Auto Insurance
What Is The Cost Difference?
Classic car insurance policies differ from regular auto insurance in several important ways. Regular auto insurance covers “daily drivers,” which are either new or old cars driven more frequently than classic and collector vehicles. More frequent driving results in more accidents; this explains why your daily driver’s auto insurance premiums will generally be much higher than what you’d pay to insure a collector vehicle.
If you’re a car enthusiast, experienced motorist, or gearhead, you know that regular auto insurance won’t cut it for your classic car collection. While they are well suited for daily driver cars, they do not offer the right car insurance coverage for antique or collectible cars. There are a few key differences you should look out for when searching for a classic car insurance policy.
What Is Classic Car Insurance?
Classic car insurance was made specifically for gearheads and car collectors. While the policies are still comprehensive and offer coverage for your vehicle’s damages, they tend to be less expensive than traditional policies. More frequent driving results in more accidents; this explains why your standard car’s auto insurance premiums will generally be much higher than what you’d pay to insure a collector vehicle.
The price of your collector car insurance is determined through individual car insurance companies. There are some insurance companies that specialize in collector car insurance, but most traditional insurance companies offer policies as well. However, a company that specializes in classic car insurance can get you a better price and better coverage for your vehicle. After all, they are the experts.
How Much Does Classic Car Insurance Cost?
As previously stated, your vintage car’s insurance should cost less than traditional, standard vehicle car insurance. Because the consumer is required to have his/her daily driver vehicle insured on a standard insurance policy, the vehicle on the classic car insurance policy is driven less frequently. In addition, the collector vehicle is driven on special/rare occasions and consequently, is generally driven more cautiously and carefully.
Additionally, collector cars are driven on the road much less frequently so they are much less susceptible to car accidents. Fewer accidents results in fewer injury claims and fewer at fault 3rd party collision claims. Overall, your classic vehicle insurance should be significantly less expensive than your traditional car insurance policy. Depending on your coverage options, you can save up to 40% insuring your collectors car with a classic car insurance policy compared to a standard auto policy.
Differences Between Classic & Regular Car Insurance
Aside from cost, classic car insurance and regular auto insurance also differ in the way they determine settlement value for a total loss claim, maximum vehicle value, as well as vehicle eligibility and usage guidelines.
When looking at an auto insurance policy for your classic car, there are a few key differences from a regular car insurance policy. These include:
- Eligible Vehicles: Classic Car insurance specializes in insuring cars of a certain age, e.g., 25+ years (such as classic, vintage, and antique cars) as well as collector / exotic cars which are collectible and have either appreciating values or stable prices. Regular auto insurance is made to insure newer vehicles prone to depreciation and older cars that are driven as “daily drivers.”
- Value for a Total Loss Claim: Because collectible cars appreciate, the maximum payment for a total loss claim (i.e., policy limit) in classic car insurance is selected at the start of the policy period. With Agreed Value insurance, the agreed upon value is selected by the customer and agreed to by the insurance company at the start of the policy (i.e., before a claim) based on the value of the vehicle. With regular auto insurance, the value of a total loss claim payment is not known and is estimated after the total loss occurs. The vehicle value is estimated based on the actual cash value of the vehicle on the date of the accident.
- Maximum Vehicle Value Limit: Vehicle values agreed on in classic car insurance may be significantly higher than the purchase price when the vehicle was originally sold based. Your car’s value can also change based on any restoration or upgrades made to the car. With regular auto insurance, the maximum vehicle value is generally determined based on the current selling price of similar Year / Make / Model Vehicles. Adjustments to the fair market value are made based on the vehicle’s relative mileage, conditioning, and betterment.
- Vehicle Usage: Classic car insurance is designed for vehicles that are “collected” and are not driven regularly; to be eligible, classic car policies generally require proof that a customer has a daily-driven vehicle insured on a personal auto insurance policy. While you can use your classic car at parades car shows, or for pleasure drives, they should not be your daily commuting car. Your classic car insurance policy may even have yearly mileage limits. On a regular car insurance policy, a “Classic Car” (older than 25 years) can be insured if it is a primarily driven vehicle.
Is Your Car Eligible for Classic Car Insurance?
Determining if your car is eligible for classic car insurance is not too difficult. To be considered for a classic car insurance policy, you will need to meet a few requirements. These include:
- At least 25 years old
- You must have a separate daily driver
- Low yearly mileage
- Good driving record
Aside from that, your vehicle must be in good working condition. Additionally, classic car insurance policies can cover various types of vehicles including antique farm tractors, vintage hot rods, classic military vehicles, classic muscle cars and more.
Frequently Asked Questions
Can I insure replicas under a classic car insurance policy?
If your replica is 25 years or older, it can likely be covered under a classic car insurance policy as long as it meets the other requirements as well.
Do all car insurance companies offer classic car insurance?
Most car insurance companies will offer coverage to classic car owners. However, they may not recognize that your collectible car is not a daily driver. This is why it is best to get a specialized collector car insurance policy so you can save money on your monthly rate.
Can I combine my classic car insurance with other types of insurance?
Some insurance carriers will allow you to combine your insurance with your homeowners insurance or renters insurance. However, those companies will not offer a comprehensive, specialized policy for your classic car.
What type of cars are considered classic or collectors vehicles?
There is a wide range of vehicle types that can be covered by a classic car insurance policy. For a more detailed list, visit our eligibility page.
Will I have a deductible on my classic car insurance policy?
As with most car insurance policies, you will have a deductible for your car’s repair expenses. Depending on your coverage, you may qualify for towing, roadside assistance or lock out reimbursement.
Does American Collectors Insurance offer spare parts coverage?
Yes – American Collectors Insurance does offer spare parts coverage for up to $500.
Getting The Best Auto Insurance Policy For Your Classic Car with American Collectors
With so many insurance options on the market, it can be hard to find an insurance agency that will treat your car right. You deserve comprehensive classic car insurance coverage with an insurance provider you can trust.
At American Collectors Insurance, we value your car just as much as you do. With reasonable insurance rates, comprehensive coverage and quality care for your vehicle, American Collectors Insurance is the best classic car insurance company on the market. Get a free classic car insurance quote today.