The average car insurance policy can provide excellent coverage for your automobile. However, the run-of-the-mill insurance that is great for your minivan, SUV, truck, or newer model sedan may not be quite good enough if you own a classic car.
If you’re wondering why, the answer is simple: Those newer models see a steady depreciation in their value over time. On the other hand, classic cars keep rising in value, and they require insurance policies that recognize the difference.
How Do I Know If My Car Is a Classic?
First of all, how do you know if you have a classic car or just an old one? It’s a great question. Classic cars have to be at least 10 years old and unique in some way. For instance, if it’s a rare model that has a significantly higher value than other cars of the same year, it may qualify as a classic. Very few vehicles may meet the criteria.
Antique cars, on the other hand, have to be at least 25 years old. In both cases, the cars have to be restored or maintained. With antiques, insurance policies may have different coverage for cars used daily versus the ones you use primarily for car shows, parades, and other events. You’ll want to check with your particular insurance provider to see if your car qualifies under their policy.
Lastly, there’s a rare category remaining. Automobile replicas are newer vehicles that model the style of ones that are at least 25 years old. Replicas are still considered classic cars because they reproduce the same vintage style.
The category of Classic Car can also include motorcycles, military vehicles, trucks, race cars, and even tractors. It’s a long list, and each insurance company may have different requirements for qualification for a classic car insurance policy. It’s best to check with the insurance companies in your area for the specifics of their policies and what they will cover in regard to your classic car.
How Is Classic Car Insurance Different?
Classic car policies differ in many ways from standard auto insurance. They usually have the option of liability-only, full coverage, and uninsured motorist coverage — just like a standard policy. They also cover much more. Here are just a few items they may cover.
Salvage Coverage
This type of coverage will allow you to keep the vehicle in the event that you total it in an accident. Your average insurance policy won’t offer salvage coverage, which means a totaled vehicle goes straight to the junkyard. Classic car owners may want to consider adding policies that include the option to store the remains at home.
Restoration Expenses
Did you know that some insurance policies for classic cars will cover parts and tools necessary for restoring the vehicles? It’s true! In some cases, restoration expenses are insurance-covered expenses. You can even get restoration coverage that factors in the time it takes you to restore a vehicle, gradually adding its value to your coverage over time.
Roadside Assistance
This add-on could be a necessity for the classic car owner. It’s important to be prepared for a breakdown, which is common in older model cars. Being able to obtain roadside assistance, towing, and even a rental car could be a lifesaver. You may even qualify for additional coverage for trip interruptions. Check to see what your insurance company can offer you in terms of help for a classic car that may occasionally leave you stranded on the side of the road.
Collectible Items
Your classic car insurance coverage just might cover auto memorabilia. You may be skeptical, but this is a valid expense for collectors. Your collection of vintage license plates, hood ornaments, or other automobile accessories could be covered under your classic car policy. It never hurts to check and see if your expenses might qualify!
Your best bet is to talk to insurance companies in your area to find out what coverage they offer to protect your classic car. You may be surprised at what’s available. Traditional insurance is unlikely to be sufficient. Do your research, compare plans and policies and make sure that your classic car is completely covered.
