Classic car insurance: How to protect your ride
While not for everyone, classic car collecting is a popular hobby that can entail significant financial investment over many years. If you are a new collector, restorer, or someone just thinking of getting into the hobby, you might be wondering how auto insurance fits into this specialized pursuit, and we did a little research to help you out.
What can I insure and who is eligible?
There are many different kinds of vehicles that can qualify for “collector’s” insurance, including antique and classic cars, motorcycles, trucks, modified vehicles, newer limited production vehicles, and even trailers, military vehicles and tractors. Also, vehicles still being restored may also qualify for collectors insurance.
Basically, if your vehicle is considered “collectible”, you do not use it for daily transportation, the vehicle isn’t overly dangerous (think nitrous components, off-road use) and you keep it in a garage or other secure enclosure, you have a good shot at qualifying for collectors insurance.
If you meet the requirements above, then the next issue with eligibility is the drivers and other cars in your household. Most likely, minor driving infractions within your household will not invalidate your eligibility, though as with all insurance, each insurance company has its own way of evaluating eligibility and what rate to charge. Also, if you have multiple drivers in your household the insurance company may require that each driver has a car for daily-use.
What is classic car insurance used for?
In most cases, classic car insurance is used to protect collectors against theft, as well as damage while leisure driving or displaying your vehicle at classic car shows. Spare parts are usually covered, as is towing, automatic coverage for newly acquired cars and coverage for vehicles being restored.
Some other specialized coverage not offered on most car insurance policies includes international travel and cargo shipping, “agreed value coverage” (which is useful because unlike most cars, classic cars actually can increase in value), and even “inflation coverage” which can automatically increase the amount your car is covered for by adjusting for inflation over time.
So if you are a new collector or are thinking of getting into this hobby, you should certainly factor in collector’s insurance, perhaps from specialty insurance companies such as Hagerty, American Collectors Insurance, or Grundy.
October 13, 2011