Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 18, 2020

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Key takeaways...

  • Standard insurance cost and risk calculations are not used to evaluate or insure the vehicle or the driver
  • Unlike repairs to common automobiles, the cost of repairing a classic car is covered under the insurance policy
  • The actual value of the classic car is set by the market of interested buyers that is comprised of other collectors

Classic car enthusiasts realize the need to insure their valuable collectible. Certain aspects of the classic car insurance industry must be known to prevent costly mistakes when seeking the best classic car insurance.

Every collector benefits from the advice of others, but some nuances of the insurance industry can serve as traps if this information is not followed in the pursuit.

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Table of Contents

The Best Classic Car Insurance is a Specialty

Only one auto insurance company in twenty will underwrite a car insurance policy on a collectible car that falls into the classic category.

Standard insurance cost and risk calculations are not used to evaluate or insure the vehicle or the driver.

Only cars that have a perceived market value higher than the actual vehicle cost are considered classic collectible cars.

Major coverage categories, like collision and comprehensive components, are not used to insure classic cars.

Classic cars cannot be compared to similar makes and models to establish an insured class of automobiles. The actual value of the classic car is set by the market of interested buyers that is comprised of other collectors.

Instead of insuring against the risk or damage or loss according to an average value, the classic car insurance policy covers the market value of the specific classic car on the insurance policy.

Independent classic car experts provide consultations that will set the market value, which becomes the insured value, of the specific car.

Some insurance companies will require pictures and specific statements about the modifications that have been made to the original car to set the annual insurance premium.

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Agreed Amount Policy Form is Necessary

Experienced insurance agents with personal experience in the classic car hobby are better able to counsel the collector. The fellow enthusiast is aware of the nuances of the entire insurance process for the collectible classic car.

The best classic car insurance policy will include all of the following attributes:

  • The policy form must have the title “Agreed Amount” across the top of the actual form, paper or electronic version. Confirm the form type prior to continuing the process.
  • When the insurance agent has prior experience with insuring classic cars, he understands and has helpful contacts to assist with setting the market value of the vehicle.
  • Loss through accident or theft is paid in the same manner under the “Agreed Policy” form, but the market value is essential to covering the actual loss.
  • The importance of the Agreed Value insurance policy form cannot be overstated because the vehicle is unique and irreplaceable to the classic car driver.

Common Insurance Limitations for Classic Cars

Risk of loss is mitigated through standard limits placed on the classic car and the driver by insurance companies in this specialized insurance sector.

Classic car enthusiasts who are unwilling to agree to these limitations will find that their rates are exorbitant or insurers are unwilling to underwrite a policy for their collectible car.

Each insurance company has a stated limit on the number of miles the classic car can be driven in a year. Seek a company that fits the annual driving habits of the owner.

The standard limit is 2,500 miles in a 12-month period, but some other insurers allow up to 5,000 miles in the same period.

Drivers are given the option to purchase more driving miles through higher annual insurance premiums.

Classic cars are “occasional use” vehicles and not insured for daily use.

This classification lowers the perceived risk of loss and restrains the costs for the enthusiast.

Unlike repairs to common automobiles, the cost of repairing a classic car is covered under the insurance policy.

Original parts are required to sustain the market value of the car, and these parts must be located and installed by a repair shop with specialists

Classic car market value is reassessed after a repair is performed on the vehicle. The replacement parts will directly impact the market value of the car.

]The insurance policy must cover the specialty features on the car including the original wheels and steering wheel, which add substantial market value to the classic car.

Classic Car Driver Characteristics

Expensive classic cars can be insured affordably when restrictions are placed on the profile of the driver. Insurance companies require that every driver of the classic car meets the following criteria:

  • Clean Driving Record – Every driver must be listed on the policy, and the driving record of each one must be free from moving violations. Young drivers must not be listed on the policy or drive the classic car.
  • Mature Driver – Long driving records that are free from moving violations are rewarded with lower premiums. Insurers have statistics that prove the correlation between maturity and risk-free habits when behind the wheel.
  • Primary Car – At least one full-use vehicle must be provided on the policy to prove that the classic car will be used on special occasions.
  • Covered Storage – Every classic car insurance policy contains a clause that defines the storage area as a garage.

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Final Statements of Caution on Finding the Best Classic Car Insurance

Every classic car enthusiast can learn from the lessons of others by remembering the following important points.

An experienced insurance agent with some personal classic car interest will provide the best classic car insurance advice for classic car insurance written on the “Agreed Value” form.

Insist on a separate classic car insurance policy instead of simply adding the classic car to the existing auto policy. Hire a reputable appraiser for the best independent car market value.

Take enough time to replace the classic car after incurring a loss. Find affordable car insurance for your classic car! Enter your zip code below to get started for FREE!

References:

  1. https://www.nationwide.com/difference-between-comprehensive-and-collision.jsp
  2. https://www.statefarm.com/insurance/auto/antique-classic-cars
  3. https://www.hagerty.com/
  4. https://www.nationwide.com/cheap-car-insurance-young-drivers.jsp
  5. https://www.safeco.com/products/classic-car-insurance
  6. https://www.progressive.com/classic-car-insurance/