Five Things You Need to Know About Insuring Your Classic Car

There’s nothing like restoring a classic car and taking it to shows to be admired. Moreover, it is understood that with all of the work and money that goes into a project like a classic car, you’d be foolish not to insure it against potential disaster. However, classic car insurance isn’t exactly like normal auto insurance; there are many differences to be made aware.

Stated vs. Agreed Value: Unlike with normal auto insurance, classic car insurance revolves around two values: the stated value of the vehicle, which is what the insurance company will pay if you let them, and the agreed value, which is what you would like to be paid if something happens to your pride and joy. Talk to your insurance agent about getting your car insured for your agreed value, or you’ll likely end up with just the stated value, often not nearly enough to replace the car.

Store It Wisely: If you park your classic car in a locked garage and install anti-theft equipment on both car and garage, you’re likely to be able to get a reduced premium from your insurance company. It’s a smart idea in the first place, particularly if you live in a place prone to destructive weather.

Mileage Restrictions: It may be common practice for an insurance company not to offer classic car insurance for vehicles driven more than 2,500 miles per year. This varies widely by company and even by individual policy; so if you feel like you need some wiggle room here, don’t hesitate to ask your local insurance agent.

Not Your ‘Daily-Use’ Vehicle: Classic car insurance can’t be used on a first vehicle, even if you don’t drive much at all. Bottom line, the company needs to know that it’s not going to be your ‘go-to’ vehicle if you need to get somewhere.

Age Requirements: It’s a simple fact that younger people (more often boys) are prone to doing stupid things, especially when given big expensive tools with which to do them. That’s why most insurance companies won’t offer you classic car insurance if you’re under 30 (25 for some companies), no matter what other hoops you jump through. If you fall into this age category and cannot get classic car insurance on your own, you may need to beg Mom and Dad to insure it inside their policy.

It is important to insure your classic car to protect in the event of loss but speaking with your classic car insurance agent can help answer questions and provide the right coverage that you are comfortable with and will protect your classic vehicle.