Classic Car Insurance : Cost & Benefits

By Max Anthony •  Updated: 07/29/21 •  6 min read

Classic cars, also known as rare collectibles, are a special category of vehicles that require special classic car insurance coverage. This type of insurance is typically specialized, covering any mechanical damage or defects that may occur over the life of the vehicle. Simply put, this type of policy covers the classic car owner for any potential losses from any events that may potentially lead to the loss of the vehicle. Here is an overview of its benefits as well as its cost.

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Classic Car Insurance: An Overview 

classic car Insurance
classic car © pixabay

Classic car insurance policies typically include physical damage coverage that may include paying for damage to the body of the vehicle itself, or the replacement of any such parts. Additionally, they may also cover wear and tear from road rash, cosmetic damage that may result from accidents, and other factors.

This type of classic car insurance is not all about the actual cash value of the vehicle itself. For example, it will often include the actual cash value of the title or registration on the vehicle. These policies often specify that you must maintain regular payments on your policy, or face stiff penalties. 

In essence, the insurer is requiring you to pay the full value of the car in case it is lost or stolen. Of course, many insurers will only insure the vehicle against theft, so make sure to do your research and talk with an expert before agreeing to insure your classic car.

Benefits Of Classic Car Insurance 

One of the main benefits of this type of insurance is that the premium is based solely on the actual miles that your vehicle logs each year. So even if you use your vehicle rarely, you still can enjoy substantial savings on premiums. 

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Of course, the only way that you will be able to determine the exact cost of your classic car insurance policy may be to obtain a vehicle inspection report. The inspection report will list the make, model, mileage, and condition of the vehicle, which will enable you to determine how much it will cost to insure your vehicle.

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How are classic car insurance rates determined? 

The price you pay for your coverage depends not only on the vehicle that you drive but also on several other factors. For example, the age and value of the vehicle will have a large effect on the cost of your premiums. Likewise, the type of restoration work that has been done to the vehicle will impact your premiums.

There are a few things that you can do to help you figure out how much classic car insurance costs. The first thing that you can do is to get quotes from several different companies. You can get multiple quotes from three or four different companies by providing the same information to each company. 

classic car Insurance
classic car © barron’s

You’ll get the cost of their standard auto insurance along with the cost of their specialty insurance. Comparing all the quotes will give you a good idea of what company is going to offer you the best rate for your desired coverage.

The other thing that you can do to find out how much classic car insurance costs is to ask your insurance company about any special deals that they may be having on cars of this type. 

Most companies will be willing to give you a discount for more safety features on your car. For example, if you have a car alarm you might be able to get a discounted rate on the standard auto insurance for your classic car. Many companies will also increase your agreed value in case of an accident, which will also help you save money

Is there such a thing as classic cars? 

Yes, all cars of a certain age fall into the classic car insurance category. Many car enthusiasts consider these vehicles to be collector’s items since they are no longer running and are considered to be in their “finest condition” at any point. 

However, others consider these cars to be restored pieces of machinery that are worth keeping. If you decide that you want to retain your car, you can opt to purchase a standard car insurance policy from your local provider. However, there are several things that you should consider before purchasing a regular car insurance policy.

classic car insurance
classic car insurance quote © everquote

Many companies offer classic car insurance policies. While some companies will insure your vehicle for only a few years old, other providers offer policies that cover your vehicle for up to twenty or thirty years old. The premium that you pay for classic car insurance does vary depending on the age of your vehicle and the number of years old that it is. In most cases, the younger your car is when you acquire it insured, the lower your premium will be.

Some companies that sell vintage military vehicles and muscle cars offer classic car insurance as a service to their clients. In doing so, these companies protect their antique and vintage military vehicles from theft and vandalism monthly. This also helps protect their customers from damages that are imputable to them due to a damaged vehicle. 

In many cases, these insurance companies have also set up agreements with auto repair companies to repair these vehicles free of charge if they are damaged due to a broken-down engine. These arrangements are in place to help maintain the integrity of these vehicles that are worth a great deal of money.

When you are looking for classic car coverage, it is important to know what you are getting yourself into. Some companies do provide standard coverage for this type of vehicle. However, others insure these types of cars for much higher premiums than a standard coverage. 

classic car insurance
classic car on display © unsplash

Because of this, you need to make sure that you understand the terms of your policy very well. A standard car insurance policy for this type of vehicle may not cover the special attributes that make your vehicle special and maintain your premium at an affordable rate. Therefore, you need to get a classic car insurance policy to ensure your vehicle is properly for the true value.

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Max Anthony

Max is a gizmo-savvy guy, who has a tendency to get pulled into the nitty gritty details of technology and cars. He attended UT Austin, where he studied Information Science. He’s married and has three kids, one dog and a GMC truck and a Porsche 911. With a large family, he still finds time to share tips and tricks on cars, trucks and more.

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