What to know when insuring your classic car.

by : Barbara Waltz

Summary: Do not assume that classic car insurance policies work the same as regular car insurance. Take a moment to learn about how to insure a classic car so you can save time and money later.


Most drivers understand the basics of their regular car insurance policy, and so they are fairly satisfied with their coverage. However, classic car owners need to understand that their rare and unique car will require a different sort of coverage than the family car does.  In fact, many people with rare or antique vehicles became very frustrated when they needed to make an insurance claim because they did understand the classic car insurance policy they purchased.

 Please consider the following questions when you look over your existing policy, or before you purchase a new one.


     How do you use your classic car?

      How will you park or store your classic car?

     What if you use your classic or custom car for daily use?

     How will your car be “valued” by an insurer?


                        How Do You Use Your Classic Car?

Some classic and custom car insurance only covers a vehicle while it is traveling between shows, or actually parked at a show. If you want to use your own collectible car for a Sunday drive, you need to make sure that pleasure driving is included in the policy. Before you take your investment out for a Sunday drive to the beach, make sure that use is covered.


It will be very tough, if not impossible, to find a policy that covers the vehicle for a daily work commute or routine errand. Classic car insurance is not intended for daily use. In addition, most classic car insurance is written for a specified, yearly mileage limit. These limits may be 1,000 or 5,000 miles a year. 

An average yearly use for a regular car would be closer to 12,000 miles. Now I have never heard of any car insurer denying a regular car insurance claim because a driver exceeded their mileage estimate by a few miles. I do not believe they even check that very often. But classic car insurance companies take that mileage limit very seriously.


                How Do You Park Your Classic Car?

You may also have restrictions on the way you store or park your car while it is not attended. You should be covered if you leave your car to eat a meal on the way home from a car show. But you may not be covered if you leave it at the mall while you are shopping.

                        What if You Must Use My Class Car For Daily Use?

If you just cannot use another car for your daily commute and errands, you will have to find a regular car insurance company that will agree to cover your classic car for the “agreed amount”. You must document your car's value very carefully. The problem with antique cars, for instance, is that they are probably so old they have rolled off of traditional book value sheets. However, you may have invested thousands of dollars restoring it, and it may be worth tens of thousands of dollars to informed collectors.

                        Stated Value vs. Agreed Value Custom Car Insurance Policies

A stated value policy means that you declare the value of the car, and it is written into the policy. But an adjuster can still argue the point when you make a claim. An agreed value policy means that the value is bound into the policy, and the insurance company has accepted it before the policy is issued.


You will pay more for an agreed value policy, and probably find that it has more restrictions on use, but it will protect your investment against a total loss.  But be careful about actual value insurance, because that will usually cause your car's value to be depreciated every year despite the fact that classic cars are likely to appreciate with time. As with any insurance policy, it is best to compare insurance quotes when looking for a new policy


Bio- (if needed)  Barbara Waltz is an insurance agent with over a decade of experience in the industry. As an insurance agent it is her job to assist in finding suitable insurance plans that fit the needs, life situation and budget of her clients. Barbara started her blog, 24/7 Quote Us, a few years back for that reason -- to offer her knowledge and know how while producing reliable online information regarding Home, Life, Health, Vehicle and Finance Insurance to be used as a resource guide.



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