Classic Cars

February 23rd, 2009

You can generally tell how much a car is loved by its appearance and upkeep.  When a car is washed and waxed with loving care, with seats, upholstery and interiors that have been kept soft and supple and as flawless as freshly churned butter, and when an engine purrs like a kitten thanks to the gentle ministrations of a well-trained mechanic, it’s apparent that this car is treated with the respect and care it deserves.  What you can’t see, though, is equally important:  Insurance coverage.  A classic car is a very special and rate thing, and it deserves very special insurance.

Auto insurance for a classic car is different from conventional car insurance in many respects, with specific advantages as well as disadvantages.  Know what these are before you start shopping for classic car insurance coverage.

Cost: Cheap auto insurance is not always the best value, but believe it or not, a classic car insurance policy can be significantly less expensive than conventional coverage and still give you better coverage for your individual needs.  Shop around for the best value, both between classic car insurers and conventional insurers, and among individual classic car insurance carriers.

Appreciation: Conventional cars depreciate, meaning their value declines as they age.  Classic cars don’t lose their value (just take a quick look through eBay) at all.  An Agreed Value policy allows classic car owners to receive a full payout, if their car is totaled, for what it is really worth, including any and all documented modifications.

Coverage: You can get basic coverage – similar to that of conventional insurance carriers (i.e. liability, accident, theft, etc.) – but you can also get insurance coverage if the car is somehow damaged enroute to a classic car show or convention, as well as associated costs (lodging, towing, etc.).

Mileage: With conventional insurance, your rates are determined based on your anticipated driving needs.  With classic car insurance, there’s no such determination, because you’re not permitted to exceed a set annual limitation without incurring major penalties.  To put it plainly (if not somewhat crudely), classic cars are for show, not for blow.

Usage: Your classic car is not a taxi, in even the loosest sense of the word.  You are not permitted to ferry the kids back and forth to school daily, or to use it for commercial purposes or to hold a drag race with the neighborhood teens.  Just as with mileage restrictions, there are usage restrictions, and you should be aware of them.

Age: Your classic car should not be driven by some whippersnapper who just got his provisional license.  Your classic car should be driven only by a mature someone with years of driving experience under his or her belt, and a clean driving record.  Handing the keys to your teenager could nullify your classic car insurance policy.

Storage: Some classic car insurers require that a classic car be properly garaged or stored.  In truth, the typical owner of a classic car would likely have it no other way.

Classic car insurance can be obtained through specialized classic car insurers and some conventional insurers.  Your (commission-based) insurance agent may try to persuade you to use the one that he represents; don’t hold it against him, that’s his job.  Satisfy your own curiosity and get an insurance quote, and be sure to ask about the restrictions and limitations.  With that in hand, start shopping for classic car insurance.  You obviously want what is best for you and your car and your wallet.  You shouldn’t settle for second-rate insurance on a first-class car.

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