Classic Car Insurance & What You Need to Know

Insure your classic cars and priceless gems to be sure they are fully protectedWhen you’ve put the time and effort into restoring a classic car, or you purchase one, you want to know that you are doing whatever you can to protect that investment. Car insurance and classic cars go together perfectly, but you’ll have to know what you need and how to understand how modern-day insurance relates to classic collectible cars.

What is considered a classic car?

A classic car is an official title given to a car that is most commonly between 25-50 years old. However, insurance agents can consider some cars outside of that range classic. Every state is different, so it’s essential to check with your personal, local insurance agent to see if the car you’d like to be insured is considered classic or not.

Two examples of classic cars are a 1980 Chevrolet Corvette and a 1975 Volkswagen Beetle. Generally, a classic car is an older car that appreciates with time rather than depreciates; it is an aesthetically pleasing vehicle that isn’t driven around in common traffic, let alone the crazy traffic in Houston, Texas. You’ll want to check with your insurance agent to see if your car qualifies since not all do!

Classic car vs. traditional car insurance

One of the most important things about your car being a “classic car” is that it’s different from your everyday car. If you drive your classic car to work every day, you may not qualify for classic car insurance, even if the car you’re driving is usually considered classic.  Be sure you understand the basics of your standard auto insurance policy.

Further, that you understand, when dealing with classic cars versus traditional – there are a few other terms to understand such as Actual Cash Value (ACV) and Agreed Value. Take a look at this article prior to having a conversation with your agent.

Classic car insurance typically allows you to drive your car, on occasion. It could be a weekly Sunday drive to a movie or just going for a spin around the block every couple of months. Classic cars are insured for occasional driving and regular storage, which is why the policy is different. Not to mention its value.

Another crucial differentiation point with car insurance for classic cars is that you have to be able to provide a secure and safe space to store it. For most, this is a garage, and often times a facility to house classics. Proof of storage is often a requirement to qualify for classic car insurance.

There are add-ons that you can consider for a base collective car insurance policy. Theft is among the most common and recommended since these classic cars are popular targets for theft. You can also have a multi-car discount, so having more than one classic car will save you if you are a collector or want to be.

One really neat feature of classic car insurance is that the premiums that you pay per month are typically less than classic car insurance. This is, of course, because you are most likely paying for a parked car, not one you’ll drive around daily. That’s a huge perk and a reason to consider getting proper insurance for your collectible.

Car insurance can often be complicated, but knowing that the right support exists with a proper auto policy is reassuring. If you want to learn more about whether it’s right for you and your car, contact your Paula Smith Insurance, your trusted local Farmer’s agent today and get a feel for what classic car insurance can do for you!


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