How to Insure Your Classic Car

When you drive a classic car, you have to approach some things differently than you would if you were driving a common sedan. Classic cars have varying values depending on their initial cost, their market price, and their condition. That variable value makes it hard to find an insurance policy that will offer you the right kind of protection for your unusual vehicle. Standard insurance policies are usually not designed to cover cars that have a subjective value rather than an objective value.

Finding a Specialty Insurance Policy

Most classic car owners use specialty insurance policies that are flexible enough to provide the appropriate coverage for cars that don’t fit the standard mold. You can buy specialty insurance through many standard insurance companies, or you can find an insurance company that only deals in specialty insurance policies. If your car is extremely rare or valuable, you might do better with a company that focuses their business on insuring classic vehicles. These companies will be familiar with the needs of classic car owners and have more experience pairing the right policy with the right car.

How You Use the Vehicle Makes a Difference

As you are shopping for a specialty insurance policy, you will find that the insurance companies want to know more details about how often you drive your car, where you keep your car, and what kind of maintenance you perform on your car regularly. This is because there are different kinds of policies that depend on how you use your car. If you only bring the car out for displaying at shows and never drive it, your policy will be very different than it would be if you like to drive your classic car to work every day.

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Agreed Value

One of the most important aspects of covering any classic car is the agreed value of the vehicle. In a standard insurance policy for a new car, the insurance company would establish the car’s value based on the market value. Since classic cars are usually models that haven’t been on the common market in several years, their market value is not always the most accurate measure of their true worth. In a specialty insurance policy, you can work with the dealer to establish a value for your car on which you can both agree. That value will be the number the insurance company works from if the car ever needs to be replacement or repair.

Understand the Rules of Your Policy

Covering a classic car is not always as easy as covering a traditional vehicle. Most specialty insurance policies come with special restrictions for how the car is used. Some companies might expect you to own another car that you use as your daily driver. There may be limits on how many miles you can drive the car each year. The car may be restricted to only one driver. Make sure you understand your policy’s limits before you walk out of the insurance agent’s office so that you don’t accidentally nullify your coverage.

Jessica Bosari blogs about cars and insurance for The site offers tips and advice for consumers, including free car insurance answers to consumer questions.

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