In this article, you will get to know all what you need to know about historic and new cars and how to get your historic car insured, happy reading.
If you own a historic car, like a 1960s era Mustang or an old Chrysler 300, you may think getting an insurance policy for your car will be difficult. However, many insurance companies offer specialty classic car insurance policy that takes into account the increase in value of the car over time and the likelihood you will take good care of your historic car. Traditional insurance policies are not recommended for historic cars, as they are often more expensive and do not provide adequate coverage for your historic car. Before you sign up for historic car insurance, you should obtain insurance quotes from several different insurance providers and compare the quotes to find the best rate for your car.
Understanding How Historic Car Insurance Works
Understand the difference between traditional car insurance and historic car insurance.
Unlike traditional car insurance, there is no baseline rate for classic car insurance. The cost of the insurance will be based on your assessment of the car’s value as well as the price the car was bought at auction or in a collector’s sale. If something happens to the car and it is totalled, you will get the agreed value stated in your insurance policy. The concept of “agreed value” is unique to classic car insurance, as you and the insurance company will agree on a fair value for your car based on the estimated value of the car, not the actual cash value of the car.
Because classic cars are usually very well taken care of and driven infrequently, the premiums will be low even if the policy has a high replacement cost. The exact cost of classic car insurance will vary based on the insurer and the vehicle you are trying to insure. Most insurance companies partner with a specialist insurance company that focuses only on classic car insurance to determine a fair value for a particular classic car.
Determine if your car is considered historic or classic by insurance companies. Most insurance companies require you to prove your car is historic or classic. This could be through the title or paperwork for the car, as well as proof of your restoration and maintenance of the car.
Your insurance company may consider your car a classic automobile if it is ten or more years old and is considered rare or historical due to fine workmanship or limited production. If your car is more than 25 years old and has historical interest due to its make or model, it is considered an antique automobile.
To be considered for classic car insurance, your car must be used on a limited basis, mostly for exhibitions, car club events, or parades. You will also need to prove that you have restored, preserved, or maintained your car. Some insurance companies may require that the car stays below a certain mileage limit every year and you may need to prove you own another car for daily use. You may also need to show that you are keeping the car in a garage, not in the yard or parked on the street.
Decide what level of insurance coverage you would like for your car.
Most classic car insurance plans will offer the same coverage options as a daily-use car, such as comprehensive and collision coverage as well as roadside assistance. However, most classic car owners are looking for the simplest and cheapest insurance, as they will likely not be driving the car on the highway or often enough to need roadside assistance. As a historic car owner, you will need to decide how extensive you need your car insurance coverage to be, based on how often you use the car and how concerned you are about the safety of the car.
If you are planning on displaying the car in a showroom rather than actually drive the car on the road, the cost of insurance will be significantly lower. Usually, show cars are insured for 1% of their total value.
As well, roadside assistance is often included in your AAA membership so you may not have to worry about including roadside assistance in your historic car insurance if you already have AAA.
Searching for an Insurance Provider
Look online for free insurance quotes from several providers. Many insurance providers will offer free online quotes for your classic car. Big insurance companies, like State Farm or Progressive, will have special pages on their website for classic car insurance. You will need to provide your zip code and you will need to confirm your car can be classified as a historic or classic car. To find the best rate for your car, you should shop around and get quotes forms several different insurance providers.
There are also specialty insurance companies that only focus on classic cars, such as American Collectors Insurance, Heacock, and Hagerty. These insurance companies can be good for classic car owners who are looking to find a company that is passionate about their specialty car and have worked with classic car owners before.
Ask other historic car owners about their insurance provider.
If you belong to a classic car club, ask around for recommendations on insurance companies and policies from other car owners. Look for other owners of cars that are a similar make and model as your car, as they may have a good insurance plan with a certain company that specializes in a similar car type.
Choose an insurance policy that fits your budget and provides sufficient coverage.
Depending on the make and model of your classic car, you may have quotes from several different insurance companies that are affordable and fit your budget. However, you should look for an insurance policy that will meet your financial needs and provide the necessary coverage for your car.
There will also likely be a list of restrictions that you must follow as a classic car owner to maintain your insurance coverage. Make sure you can meet these restrictions, such as low annual gas mileage or proper care and storage of the car, as you may be liable for any damage to the car if you do not adhere to the requirements of your insurance policy.
Thanks for reading.