Classic car insurance differs from standard car insurance in several ways. It is less expensive than standard insurance, has specific feature requirements and may not be the best option for classic cars that are still in daily use. The value of the car, age of the owner, miles driven, housing and age of the car are all criteria that need to be met. Collector vehicles get such low rates of insurance because they are rarely driven, are exceptionally well maintained and usually increase in value over time. If you think classic car insurance is right for your car and lifestyle, you need to know the details of this type of insurance.
If you have a classic car, one that was manufactured between 1973 and 15 years ago, you may be eligible for classic car insurance. This is a much better option than putting your classic car on your regular auto insurance policy. You can protect the investment of a classic and have lower premiums.
The criteria that must be met may vary from company to company, but they will all want to know the age of the driver, the mileage on the car, how the car is housed when it is not in use and the age of the vehicle. There are specialized classic car insurance companies that will cover drivers 21 years or older, but most companies require the driver to be over 25 years. If you car is well protected from thieves or weather, it has a better chance of getting lower premiums.
Another difference between standard auto insurance coverage and classic car coverage is the value of the car along with depreciation. Standard car insurance covers the current value of the car, minus depreciation. The older the car gets, the less it is worth. A classic or vintage car does not depreciate in value over time. If the car is well maintained and rarely driven, the value will increase with time.
This different situation is why there are specialty insurers. Usually, the insurer and the owner will agree on the value of the car. This is called Agreed Value Coverage and may be based on an independent assessment of the value of the classic car. The insurance coverage will include the agreed value of the car which will be stated on the policy, and will add the appreciation value at the time of loss.
Finally, some car specialty insurers will exclude deductibles or have very low deductibles for collision and comprehensive coverage. They may even cover spare parts and accessories that your classic car does not have at the time. This is very specific to classic or vintage cars because they are more like art objects than running vehicles and are used very little. Standard auto insurance will not give this kind of special coverage.
For car models over 15 years old that are not driven much and are owned by an older person, insurance is a much cheaper option for car insurance.