If you have a classic car, it needs the right insurance for more than just driving it. Classic car insurance not only provides exclusive coverage to your car, it also protects the original value of your car.
In this blog, we will give you a list of Best Classic Car Insurance Companies, comparative analysis of their policies, Cost of Classic Car Insurance, and smart tips to save your premium.
Read the post and learn how with the right insurance you can keep your classic car safe and profitable.
What is Classic Car Insurance?
Classic car insurance is a special type of policy that covers vehicles that are unique because of their historical, cultural or collectible value. This insurance covers the agreed-upon value of your classic car, not its depreciated market value.
It is generally designed for vehicles that are more than 10-20 years old and maintained in good condition. It includes features like limited mileage, custom parts coverage, and show-event protection.
If you want to protect the original value and condition of your classic car, this policy is a must for you.
Definition and Importance of Classic Car Insurance
Classic car insurance is a special type of insurance policy that not only provides financial protection to your classic or antique car but also protects its intrinsic value.
Unlike regular auto insurance, classic car insurance is designed for vehicles that are considered special due to age, uniqueness, and historical value.
The importance of this insurance lies in the fact that it covers the agreed-upon value of your car rather than its market value, thereby ensuring that you get its full value back in case of any accident or damage.
Key points that make it a must:
- Antique and Collector Vehicles Protection: This insurance preserves the original look and unique features of the car.
- Cost-Effective Coverage: Classic car insurance premiums are lower than regular auto insurance.
- Agreed-value protection: This gives coverage at the true value of your car, regardless of market depreciation.
Key Features of Classic Car Insurance Policy
- Agreed-value coverage: Classic car insurance provides coverage based on the pre-agreed value of your car. This value is decided between the policy holder and the insurance company and is not affected by market depreciation.
- Specialized Roadside Assistance: This insurance provides special types of assistance, such as safe towing of a classic car by truck or the services of an expert mechanic.
- Limited Mileage Coverage: Most classic car insurance companies place limits on driving mileage to ensure that the car remains in good condition.
- Custom and Authentic Parts Coverage: If your classic car needs repairs, the insurance company uses only authentic and customized parts.
- Event Coverage and Show Protection: Classic cars are often displayed at car shows and events. This policy covers your car in these events also.
Best Classic Car Insurance Companies
Choosing the right company in classic car insurance is important to protect and preserve the value of your car. Here are five top classic car insurance providers:
- American Collectors Insurance
Properties:
- Agreed-value coverage: Covers the true value of your classic car.
- Flexible mileage options: Customers can choose from an annual limit of more than 7,500 miles.
- Theft and Damage Coverage: Coverage even at car shows and events.
Additional benefits:
- Custom parts coverage and easy claims process.
- Hagerty Insurance
Properties:
- Agreed-value coverage: protection against market depreciation.
- Mileage Range: 7,500 miles per year.
- Roadside Assistance: Help from classic car experts.
Additional benefits:
- Car show coverage and membership in the Hagerty Drivers Club.
- Safeco Insurance
Properties:
- Flexible Policy Options: Limited Mileage and Special Event Coverage.
- Mileage Range: 5,000 (for occasional-use rates), 10,000 (for standard-use rates)
- Discount: Multi-policy discount.
Additional benefits:
- Custom coverage for small businesses and individual needs.
- Grundy Insurance
Properties:
- No mileage limit: A great choice for those who regularly drive classic cars.
- Mileage Range: Unlimited
- Full Coverage: Protection of vehicle, owner and property.
Additional benefits:
- Special coverage for collectors and car show lovers.
- Chubb Insurance
Properties:
- High-end coverage: Ideal for expensive classic and luxury cars.
- Mileage Range: Unlimited
- Agreed-value coverage: Protection of the actual value of the car.
Additional benefits:
- International coverage and advanced accident prevention features.
Overview of Top Providers
Some companies for classic car insurance are particularly renowned for their expertise and custom services. These companies understand aspects like the agreed-upon value of your car, limited mileage and custom parts.
- Hagerty Insurance: One of the most popular providers for classic and collectible cars. It offers agreed-value coverage and roadside assistance.
- American Collectors Insurance: This company offers features like custom parts coverage and multi-vehicle discounts.
- Grundy Insurance: Known for coverage with no mileage limits.
- Chubb Insurance: Budget-friendly option that includes comprehensive coverage.
Factors to Consider When Choosing an Insurance Company
- Coverage Options: Make sure the company offers agreed-value coverage, custom parts coverage, and event protection.
- Mileage Limit: Select limited or unlimited mileage options as per your needs.
- Cost: Compare the premiums of different companies and choose as per your budget requirements.
- Customer Reviews: Read users’ experiences and reviews.
- Discounts: Check for discounts and special benefits, like multi-policy discounts.
Coverage Details of Classic Car Insurance
Classic car insurance provides different and customized coverage for your car than standard auto insurance. It offers many special benefits and limitations to protect your car. Let’s understand what classic car insurance covers and what it doesn’t.
What does classic car insurance cover?
- Agreed-Value Coverage:
- Classic car insurance covers the pre-agreed value of your car. It takes into account your car’s true value instead of market depreciation.
- Physical Damage Coverage:
- Covers damage caused by accident, fire, flood, or vandalism.
- Coverage is also available for damage caused during car shows or events.
- Custom and Authentic Parts Coverage:
- This ensures that only authentic and custom parts are used in the repairs of your car.
- Limited Mileage Coverage:
- Typically 2,500 to 7,500 miles of driving is allowed.
- Designed to keep your car in great condition.
What doesn’t classic car insurance cover?
- Regular Daily Use:
- Classic cars are not meant for daily driving.
- If you use your car daily, it is not covered.
- General Wear and Tear:
- Normal damage, such as tire wear or engine age, is not covered under coverage.
- Use by unauthorized drivers:
- If your classic car is driven by an unauthorized driver and is damaged, coverage will not be available.
- Use of Non-Authorized Parts:
- If authentic parts are not used in the repair, coverage will not be valid.
- Driving more than the limited mileage:
- If you drive more than the mileage limit specified in the insurance, the damage will not be covered.
Cost of Classic Car Insurance
Cost is an important factor when choosing the right classic car insurance. It is important to know what the price of classic car insurance is and what factors affect it.
How much does classic car insurance cost?
The average cost of classic car insurance typically ranges from $200 to $600 per year. This price is lower than typical auto insurance because classic cars are typically driven at low mileage and have limited mileage.
Why is classic car insurance cheap?
- Limited Use: Classic cars are not meant for everyday use.
- Special Storage: These are often kept in a secure garage.
- Collectors’ Items: Owners treat these with special care.
However, costs may vary depending on the policy type and coverage.
Factors Affecting the Cost of Classic Car Insurance
- Vehicle Value:
- The higher the agreed-upon value of your classic car, the higher the insurance premium will be.
- Driving Mileage:
- Limited mileage (2,500-7,500 miles per year) keeps policy costs low.
- If you drive more, the premium may increase.
- Vehicle Status:
- Classic cars kept in good condition command lower premiums.
- If your car has custom parts, its price may increase.
- Storage Conditions:
- Cars kept in climate-controlled garages are considered lower risk, resulting in lower premiums.
- Location:
- Your place of residence and local history of accidents also impact the cost of insurance.
- Premium as per Company:
Different insurance companies offer different premium rates. For example:
- Hagerty Insurance: Affordable and customized coverage.
- Grundy Insurance: Collector-focused coverage.
Tips to Save on Classic Car Insurance
You can reduce your costs by using the right strategies and taking advantage of discounts when purchasing classic car insurance. Here are some useful tips to help you save on your policy.
Strategies for Reducing Premiums
- Opt for Limited Mileage: Classic car insurance is usually based on limited mileage. If you only drive your car to shows or special occasions, opt for a limited mileage plan. This may reduce the premium.
- Keep the car in a safe place: Keep your classic car in a garage, preferably a climate-controlled garage. Keeping your car in a safe location reduces the risk of accident or theft, which reduces premiums.
- Choose a Higher Deductible: If you can accept a slightly higher deductible, your premium costs may be lower. This strategy is beneficial for low-risk cars.
- Determine the value of your car: Determine the appropriate agreed-upon value for your classic car. Overstating the value may increase the premium, so be realistic.
- Consult an Expert Agent: Get advice from an expert classic car insurance agent. They can help you find better policies and discount options.
Discounts Offered by Insurance Companies
- Multi-Policy Discount: If you also take home or other vehicle insurance from the same company along with your classic car, you may get a discount.
- Safe Driver Discount: If you have a good driving record and haven’t had any accidents in recent years, you may be eligible for this discount.
- Club Membership Discount: Some insurance companies offer special discounts to classic car club members. For example, Hagerty Drivers Club members can receive additional benefits.
- Anti-Theft Device Exemption: If your classic car has safety features like an anti-theft system or GPS tracking, your premium costs may be lower.
- Pay-in-Full Discount: Many companies offer discounts on paying the entire premium of your policy in one go.
Conclusion
Classic car insurance not only protects the precious value of your car but also provides financial protection to it. In this guide, we have discussed the Best Classic Car Insurance Companies, their coverage, costs and effective savings tips.
It is important to keep your car needs, budget and coverage options in mind when choosing the right insurance policy. Now you are ready to make an informed decision.