Classic car insurance is important for classic car owners, because they tend to drive less frequently and drive cautiously. Therefore, insurance rates for classic, antique, and vintage cars are often lower than standard auto insurance. Furthermore, classic car insurance can cover the guaranteed value of the vehicle, which is important since these cars typically appreciate in value.
Classic, Antique, and Vintage Cars: Defined
An older car can be just an “older car.” However, for a car to be a true classic, antique, or vintage, automobile, it must meet certain requirements. There are different definitions that often tend to overlap for classes of older automobiles:
- Classic automobiles are vehicles between 10 and 40 years old that have been maintained and restored in a way that stays true to its original manufacturing. The term is often applied loosely by owners to any car; however, the Classic Car Club of America defines “classic” as an exclusive list that includes only specific important marques built between 1925 and 1948.
- Antique automobiles (also “historic”) is a designation defined state-by-state and varies by insurance company. In Florida, the vehicle must be at least 30 years old and have been maintained and restored according to the original vehicle specifications to qualify for antique status.
- Vintage automobiles are more loosely defined as any car manufactured between 1915 and 1942 according to the Classic Car Club of America. Unlike antique and classic cars, a vintage car can be modified and still maintain vintage status.
What is Classic Car Insurance?
Classic cars are fundamentally different from everyday cars (“daily drivers”). When kept and restored properly, they are collectibles that increase in value as they age. Some insurance policies, therefore, allow for an annual increase in the insured vehicle’s value. And some policies are designed to cover the full collectible value of the vehicle.
How is Classic Car Insurance Different from Regular Car Insurance?
Classic cars are a significant investment for their owners. Thankfully, many auto insurance companies offer special rates for antiques and classic cars, making them more affordable to insure than a traditional car.
Classic car insurance offers some key benefits compared to insurance for a traditional car.
- Lower Premiums. Classic cars are generally driven with great caution, so the premiums are about 40% lower than insurance for a “daily driver.”
- Stated Value. The vehicle owner gives the insurance company a “stated value” of the classic car (with proper documentation) at the beginning of the policy. The car is then insured for the stated value. However, in the event of a loss, the insurance company can choose to pay either the stated value or actual cash value, whichever is less.
- Guaranteed Value. Commonly known as “Agreed Value” coverage, guarantee value of an insured classic car is the affirmed value agreed upon by you and the insurance company. The insurance company then guarantees that value will be paid to you in the event of a covered total loss.
- Fixed Mileage. The policy allows flexible usage, but there is a fixed mileage limit.
To qualify for classic car insurance, some insurers require:
- Usage: The policy will be tailored to reflect your driving habits.
- Storage: Your collectible car should be stored inside in a secure, locked garage or structure.
- Regular-Use Vehicles: Some insurance companies require that you also maintain a “regular use” insurance policy in your name on a daily driver.
ABC Dennis Insurance Agency
ABC Dennis Insurance is an independent insurance agency established in 1997 that provides classic car insurance for individuals and businesses.
As an independent agency, we find the best coverage with the most competitive rates among multiple insurance companies. This is important because no classic car insurance company can meet every insurance need. So, we shop multiple insurance carriers to find the coverage that best fits our customers’ every need.