How to Insure Collectible and Vintage Cars

Posted on Dec 9th 2009, 03:38 pm, under Are You Covered?

Just what makes a car a "classic" or "collectible"? These days, it's hard to say, since tastes are becoming so inclusive. Cars labeled "antique" still qualify, naturally. But now people have started collecting other vehicle types, such muscle cars, sports cars, seventies-era cars, and even newer sports cars. 

Whatever your individual preferences, when you're the proud owner of a vintage or collectible car, you’ll need protection for your prized possession. However, regular insurance just won't do for special cars. This is where classic car insurance firms come in. Standard auto insurance companies don't offer the same services that classic car insurers provide, and if you opt for a conventional insurance plan, you'll probably end up paying a higher premium, sometimes up to 500 percent more than a specialized plan!

Here's how you insure a collectible car:

1. First off, you must get a good estimate of your car's value. In most cases, the person who knows this best will be its owner, namely you. Check the market price for your vehicle, and take into account the money you've spent on restoring your car or adding features. You should know the prices of all the options installed, as well as the cost of replacing or repairing these. This is because you want to insure your car for its stated value. Stated value is your personal estimate of its worth, not one provided by an insurance company.

2. Next, find a firm that specializes in insuring classic or collectible cars. Some of the best known US providers include Hagerty Classic Insurance, Grundy Worldwide Insurance, and J.C. Taylor. A full list is available here. 

3.  Make sure you own a "daily driving" vehicle for your everyday use. If you use your vintage car for your daily commute, you might not be eligible for specialized insurance. 

4. Consider the added limitations that classic car insurance plans may impose. You may not use your vintage car for commercial transportation of passengers or goods, or for racing. In addition, some plans have mileage restrictions on your vintage car (often 2,500 miles or less per year).

5. Get several quotes for comparison. Ask these classic car insurers about their features and policies. Prepare all of your vehicle's relevant information before you ask for quotes. If you're getting wondering how much your insurance deductible should be, check out our article on the topic.