What You Need To Know About Classic Car Insurance

From “Mustang Sally” to “Little Red Corvette,” music throughout the years has demonstrate the passion that drivers have for their cars. And it’s hard to find more passionate enthusiasts than classic car owners who appreciate the history, design and engineering of these vintage rides.

4 Classic Car Insurance Tips

Not surprisingly, owners take impeccable care of their rides and that includes selecting the right classic car insurance. Here are four tips on what to look for in a classic car insurance policy…

Go Specialty Versus Regular Policy

With conventional car insurance, a car is typically covered only up to its actual cash value, which is equivalent to its replacement cost minus depreciation, says Rural Mutual agent Jacob Shropshire. But classic car insurance usually covers an agreed upon value, which can be determined by a respected collectible car valuation guide like Old Cars Report Price Guide. An insurance company will also consider research by an underwriter or some form of documentation.

Your Classic Car’s Age and Condition Matter

What exactly qualifies as a classic car? Typically, classic or antique cars need to be at least 15 years old but are usually 25-30 years old. Also, car insurance depreciation might not apply. Unlike everyday vehicles that depreciate the minute you drive them off the lot, classic cars actually may gain value with age. It’s important to check with your insurer to make adjustments with your car insurance.

The types of classic vehicles covered can range from muscle cars and exotic (think James Bond) cars to classic trucks or even antique tractors. There’s a general rule of thumb that the car needs to be in “good” condition and in shape for driving. Classic car insurance likely will not cover vehicles that have been previously damaged.

Drivers also will need to agree not to race their cars or drive on a racetrack. This can affect their classic car insurance rates.

Gentle Use Means Lower Classic Car Insurance Rates

Classic car insurance policies have a limited use provision. This only allows use of the car for travel to auto shows and auto club meetings. Typically, insurers place a maximum annual mileage restriction for antique car insurance. This varies by state but usually doesn’t exceed 7,500 miles per year. When selecting an insurance policy, it would be wise to ask if there are restrictions like this, especially if you plan to drive the car regularly.

It’s also important to have a plan for storing the car in a private and secure facility—one that is dry and dark to avoid damaging light exposure and rust build-up. The better the car is maintained, the more it will hold and increase its value. But don’t assume that because your classic auto is safely nestled inside your garage, you can let your coverage lapse. It could still be damaged from a storm, fire or other disaster.

Your Driving Record Always Matters

Most carriers will look closely at a driver’s safety record to determine eligibility for a classic car insurance policy. Generally, it will require five to 10 years of driving experience and having no more than one at-fault accident or moving violation within the previous three years. Again, this will vary slightly by state.

When it comes to protecting your vintage ride, be sure to reach out to your Rural Mutual agent for help in securing the best car insurance.