Issues Concerning Insurance for Classic Cars

There are a number of classifications of classic cars, mainly varying by the date of manufacture. Automobiles manufactured up to 1904 are called “veteran cars,” while the Edwardian period spans from 1905 up to 1918, and the Vintage era lasts from 1919 to 1930. For the most part, cars are usually thought of as “classics” if they were made at least 25 years ago, but cars made even fairly recently can be designated as “classics” when they are extremely rare or collectible.

For the purposes of insurance or traffic laws, many US states have specific rules as to what qualifies as a “classic car.” In the United States, particular cars from the “muscle car” days are considered classics with a special mystique, while other well-known worldwide classics include the original Mini and the original Beetle.

Classic cars often don’t have modern safety features, and are therefore prone to damage and potentially expensive to insure. They do not have things like seatbelts, crumple zones, airbags, or rollover protection, largely because these features were mostly invented in the period after the generally accepted “classic” period. Despite the fact that it’s commonly thought to be prohibitive, classic car insurance is a requirement, even for those who do not intend to drive them on public roads, because, among other reasons, maintenance and repairs can be extremely expensive, meaning that any help from insurance can make the difference between owning a classic car, and having to give up the hobby and get several free classic car insurance quotes

When considering classic car insurance, one must consider a number of factors. One of the big issues is the car’s valuation. Some policies are offered based on the actual cash value of the car, in which case a book value with depreciation is paid out by the insurer in the event of a claim; then there is the “stated value” policy, which may also depreciate, but is dependent upon the owner’s valuation for the automobile; and agreed value, which does not necessarily depreciate, and is dependent upon an accord between owner and insurer.

There are other important points, including: whether or not the policy liability covers public events; coverage taking into account possible damage at events or classic car shows; whether or not the policy covers damages during restoration; and moveable premiums based on mileage, which of course varies greatly for classic cars on a year-to-year basis.

Some owners assume that specialized classic car insurance can’t help but be especially costly, but this isn’t always a correct assumption. Insurers that specialize in classic cars will be much more likely to know about the aforementioned issues, and thus, in the end, classic car owners can actually save a surprising amount of money, and get a much better policy, from a provider that understands classic car insurance.