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Insurance Article

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Classic Car Insurance Policy Basics

Getting antique auto insurance for vintage cars is, in many ways, the same as insuring your regular car. However, because of the unique nature of vintage cars, you should ask some pointed questions about an antique auto insurance policy before making a final decision.

Does My Car Qualify for Antique Auto Insurance?

Different organizations use different criteria to define "vintage" or "collectible" cars. Even though your local collectible car club has "certified" your car, your state and your insurance provider may have different definitions. Identifying companies that offer classic car insurance options is your first step in finding the right antique auto insurance policy.

How Will Value of Vintage Cars Be Assessed?

Normal cars are insured based on their "actual cash value," an amount that falls over the years because of depreciation. Vintage cars, on the other hand, gain value over time, so when looking at car insurance options, make sure you can get coverage under an "agreed value" policy. Such policies will pay the full value of your car if it's lost or stolen.

How Will Driving Be Restricted?

Insurance costs are based on risk. Because the cost of repairing vintage cars can be high, insurance companies try to mitigate risk by restricting use of your classic car. You may be required to:

  • Drive the car only under specific circumstances or within a certain distance of your home
  • Name all drivers and/or limit drivers to a certain age or older
  • Not exceed a maximum number of driving miles each year, commonly 1,000 or 2,500 miles
  • Store your car in a secure, closed garage.

Standard Insurance Questions

Besides those questions unique to classic and antique auto insurance, examine your car insurance options according to the normal variables in an auto insurance policy. These include limitations of coverage, premium payments, deductibles, coverage exclusions and riders.