Classic Cars: How to Insure Your Golden Oldie

January 15, 2013


Classic cars insurance coverage

Classic cars insurance coverage

You’ve made the decision to purchase a collectible car. This is a big decision but also an exciting one for car enthusiasts. The next step is making sure you have the proper insurance coverage for your collectible. Over half of the individuals who have classic cars today insure them under regular auto insurance policies. These individuals are missing out on the benefits of an insurance policy specially designed to cover these types of automobiles. Read on for some differences in the specialty insurance division.

Reduced Cost

Although cost is not the most important factor when determining insurance coverage, you can save up to 500% by purchasing specialty insurance coverage rather than regular insurance coverage for your classic car. This is a dramatic saving while at the same time still providing superior coverage for a superior car. The savings on the insurance alone will allow you to invest some of the money back into the classic car or other interests you may have.

Mileage and Driving Restrictions

Some specialty insurance policies for collectible cars contain mileage and driving restrictions. Many will restrict the driving to 2,500 miles a year and some even require an odometer reading once a year. Some policies also restrict the driving of the automobile to parades and shows; however, some policies do allow for the occasional relaxed drive in the country. Shop around for a policy that meets your needs and the type of driving you plan on doing with your collectible.


In the insurance business, a lot of terminology is used that may be unclear to individuals. Insurance policies may speak of Actual Cash Value, Stated Value, and Agreed Value. Actual Cash Value represents the actual value of the vehicle, and it depreciates over the course of time. This is the type of policy under which regular vehicles are insured; however, you would not want your collectible to be on a policy that would pay you less money depending on the age of the car. Stated Value represents the value that you state your vehicle is worth. This is much better than the actual cash value; however, this can still depreciate over time. Other types of insurance coverage offer Agreed Value, which is a value for the vehicle upon which both the owner and the insurance company agree. This value does not depreciate over time and offers the best protection for classic cars.

Vehicle Age and Type

Traditionally a classic car was defined as one which was 25 years or older, and these were the vehicles covered under the specialty insurance policies. Today some companies have broadened their specialty insurances to cover exotic cars and other vehicles that do not fall under this 25-year age restriction. The definition of what qualifies as a classic car in terms of makes and models have also broadened. If you happen to find an insurance company that does not insure your particular collectible under their specialty insurance, be sure to shop around to other companies. There are many different options available today. As the saying goes – there are other fish in the sea!

As with all insurance policies, the key to finding the right fit for your golden oldie is to shop around and obtain multiple quotes before deciding which insurance to purchase. This research can be time consuming; however, it will be worth the effort to find the correct insurance for your classic. Using a site such as the AutoInsurance.US blog can help make this decision a bit easier.

A classic car enthusiast himself, and an insurance consultant by day, Richard Ackerman enjoys sharing his tips and knowledge on classic cars for a range of motoring blogs.


Classic Cars: How to Insure Your Golden Oldie



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