Insuring your collector, classic, or historical car may seem like a pain in the neck. There are many things to consider and think about if you want to keep “your baby” protected. Below, we’ll attempt to clear the air on whatever confusion you may have on classic car insurance, including: whether or not you should inure with a major or specialized insurance company, what the different types of collector car coverage are, and where to go to get insurance for your collectible car.
Insuring Your Classic Car With A Major Insurance Provider
Even though specialty auto insurance companies that only insure collectible and antique cars have been around for over a decade, more than 50% of classic cars are still paying more than they have to buy going with your standard auto insurance company.
The problem with using a big named auto insurance company like Geico or Allstate to insure your collectible car is that most insurance companies don’t understand the value of these cars (both in terms of cost and nostalgia). Without finding the right collector car insurance, you could end up paying 500% more than you have to for the less coverage.
If you decide to go with an auto insurance company that specializes cars you will find that you will be paying far less. Most auto insurance companies look at cars at the face value. But as you and I know, a ’64 Ford Mustang is worth much more than a few thousand dollars.
Different Kinds of Collector Coverage
The three most common types of collector car insurance are: Actual Cash Value, Stated Value, and Agreed Value.
- Actual Cash Value (ACV):This is the type of coverage most auto insurance companies will cover you under. This is the blue book value of a car. As a car gets older, the value of it goes down. This is ideal for most cars, but for a collector car you can see where this type of coverage isn’t adequate.
- Stated Value: This type of coverage is more ideal for collectible cars, but not necessarily the best option. This coverage is rather flexible and lets you state the value of your car. As time passes your car will hold the same value.
- Agreed Value: Agreed Value coverage is the best option for those looking to insure their collectible. With this type of coverage, the value of your car will always be what other collectors are willing to pay. To get this type of coverage you will probably need a collector car specialist to appraise the value of your car. Agreed value coverage also takes modifications and restorations performed on your car.
How To Buy Insurance For Your Collectible Vehicle
There are some limitations to insuring your collectible. You must be at least 25 years old (30 in some cases) and must have a relatively clean driving record. Even though you probably will be driving safely and won’t be in danger of getting a speeding ticket while driving your classic vehicle, the high value of these cars still makes it harder to insure for less experience drivers. In addition, your vehicle needs to be at least 25 years old. A vehicle aged 25 years or older is qualified to be a “classic vehicle” with historic value.
If you are insuring multiple collectible cars, you can typically get a pretty hefty discount. Every specialty car insurance company varies in rates, coverage types, and restrictions so make sure you ask plenty of questions.
There are a few different companies that offer collectible car insurance including Hagerty Insurance, which refers to themselves as the “classic and collector car insurance specialists.” Grundy Insurance, another classic vehicle insurer, claims to offer specialized Automobile Liability and Physical Damage insurance for the Antique and Collector Car industry.
To get quotes for your collectible car from multiple insurers all in the same place, use our insurance quote comparison tool here on 4autoinsurancequote.com. Scroll up to the top of this page and enter your zip code to begin.