Less than half of the classic cars currently on the road are insured
through specialty insurance programs. This means most owners are
still insuring their cars through standard auto insurance deals,
not knowing that they might be able to get a better deal through
a specialty insurance policy. Although it seems counterintuitive,
specialty policies are often actually less expensive than standard insurance.
Ordinary insurance policies can cost up to 500% more than a specialty
classic car package. You can save money by looking into a specialty
policy with your insurer.
To get this kind of policy, you generally
need to have another car that is your “daily driver” vehicle. If you drive
your classic collector car every day, you aren’t eligible
for these special programs. If, like most collectors, you only
drive your classic car every once in a while, you can benefit from
this eligibility. Whether your car is eligible for the program
is determined on a case by case basis. You don’t even have
to insure your cars with the same insurer. Have your regular car
insured through your standard insurance company, but have the classic
car insured through a specialty company, unless your regular company
offers a specialty program.
There are differences between these
affordable specialty programs for classic cars, so be sure to
compare your options when you shop around. Levels of service,
rates, types of coverage, and handling of claims all differ between
companies. If you’re insuring
a collectible car, be sure to research all kinds of policies before
making your choice to get the best and most affordable insurance.
There are three types of coverage available to you: Actual Cash
value, Stated Value, and Agreed Value. Most everyday cars are insured
by the first, but collectible cars often do better with Agreed
Value policies. With the other two types of policy, the older a
car gets, the less it is worth. This applies for most cars, but
classics actually go up in value with age, if properly maintained. So be aware of that when looking for affordable auto insurance that you can use for your classic car.
If your classic car is at least 25 years old, or otherwise exotic,
you could find a very affordable premium through a specialty car
insurance program. Many programs request that you drive less than
2,500 miles per year, but this is not a problem for most collectors,
who take their cars out only on special occasions. Many companies
also require that the people insured under a specialty program
be 25 or older, but this is not a uniform restriction. Specialty
classic car insurance is much less expensive than standard insurance,
if you qualify. Even if you have multiple classic cars, you might
have to only pay one premium. After all, you can only drive one
car at a time!