Why Do You Need Classic Car Insurance

There are generally two types of people who buy antique cars. Those who want to enter competitions and those who want to fix one up and sell it for a profit. Unlike regular cars which depreciate as they get older, antique cars actually appreciate in value as the years go by. The longer you own an antique car, the better it gets and the more thankful you are for insurance. Whether it’s a ’55 Chrysler, a ’66 Mustang, or a ’74 Cadillac, your antique car is probably one of your most prized possessions.

Normal vs Classic Car Insurance

While some owners of classic cars have regular auto insurance on their antiques, this is not a good idea. Normal cars lose value as they grow older, while classic cars gain value. However, a regular car insurance policy is designed for a car with decreasing value and therefore, a decreasing pay out when something happens. Classic cars have a separate type of insurance since they are not used the same as normal cars. They are normally stored away when not in use at a show or a parade. Since there is not the everyday danger associated with normal cars, sometimes lower rates are available.

What Is a Classic Car?

Classic cars normally fall under three categories: Veterans (created on or before December 1904), Edwardian (made between January 1905 and December 1918), and Limited (rare, special interest, or limited editions). Not all cars that are old are considered classic cars. They are normally limited to convertibles, foreign sports cars, 2-door sports cars, V8 engines, and a few others. Make sure to confirm that your car is one of the accepted classic cars.

Tips For Buying Antique Car Insurance

When you buy antique car insurance make sure to keep this things in mind.

This is a specialty coverage:  Insurers will normally ask for more information to establish a policy than a regular auto insurance. It may include limitations on mileage and activities.

Possible restrictions: You may be required to transport your car in an enclosed trailer. The coverage may only apply during certain events like a show or parade.

Requirements For Owning a Classic Car

Each state has different requirements for owning a classic car. These also reflect the nuances of a classic car similarly to purchasing insurance. Make sure you are able to meet these requirements.

• A clean driving record (no major incidents)
• At least ten years of driving experience
• No underage drivers on the policy (or anyone with a poor driver record)
• A secure storage unit which keeps the car safe from elements
• Proof of a seperate car which will be used for daily transportation
• Proof that the car will be limited in use – usually 250 miles annually or less is required

If you have met the requirements for owning a car and for purchasing classic car insurance, make sure to keep an eye on what cars of similar makes, models, and years are valued at so you have a general idea of your cars value.

Want to learn more about antique car insurance? Contact the H&K Insurance Agency or click here for a free online quote. We’ve got an expert team to help you protect your classic car and tailor it to your specific needs and uses. We will also offer a full spectrum of insurance, including regular auto and home insurance. You learn more about these here.