Your classic car is special to you. That’s why classic car insurance is a separate category with some key differences from ordinary auto insurance policies.
First, let’s deal with the name. Different policies may be called classic car insurance, collector car insurance, or antique car insurance. Exactly what qualifies will depend on the insurance company, but usually, such policies cover cars that are of a certain age. In addition, they can protect cars that have distinctive characteristics. For example, being particularly rare.
The biggest difference with classic car insurance is that the insurance company will usually agree to a specific value of the car at the start of the policy. If the car is destroyed or damaged beyond economic repair, your payout is for this agreed-upon value. Compare this to the usual system of looking at the market cash value of your classic car at the time of the claim. This gives you the peace of mind of knowing you’ll get the right amount with no surprises.
If the insurance company pays for repairs after a collision, classic car insurance will often guarantee to pay for necessary and authentic parts . These special parts might be excluded or exceed coverage limits with an ordinary car insurance policy.
One note of caution:
Note that many classic car insurance policies only apply to limited usage. Whether that’s a specified (low) annual mileage, or only covering trips to exhibitions and parades. In fact, most policies will not cover cars that are used for everyday driving.
Be sure to connect with us to discuss the details of classic car insurance, collector car insurance, or antique car insurance. We can help to find the right policy for you!