A classic or vintage car requires a special kind of auto insurance. We’re not talking about the 72 AMC Gremlin your Aunt Minnie left you. To qualify for classic car insurance, your vehicle must meet several criteria, including showing an appreciation in value.
This specialty car insurance also requires that your car be of a certain age, which will vary by state but is typically a minimum of 15 to 25 years or more. In fact, some providers refine the definition as Veteran Cars (built before 1903), Vintage Cars (built between 1903 and 1933) and Classic Cars (built before 1973).
Classic car insurance providers may also require that your vehicle never be used for business or commercial purposes and that it not be your primary transportation vehicle. Depending on your provider and the age of your vehicle, there may be restrictions on the number of miles you can drive in a policy year. These typically range from 1,500 to 7,500. Your provider may also stipulate the conditions under which you may drive your car, limiting it to classic car shows, organized club meetings and events, and parades. Some classic car policies may also insist that you meet special storage requirements.
Because it is assumed that you won’t be racking up mileage driving your classic car great distances, classic car insurance premiums may not be as high as those for your everyday vehicle. However, it’s very important that you have the value of your classic car professionally appraised to insure that your policy is sufficient to cover its true worth. Some classic car insurers will require that you show proof of an appraisal or provide a value document. Whether or not this is a requirement, it’s a step you really shouldn’t overlook. After all, you want to be sure you’re insured for the full collector value of your car, not the book value.
Some insurance providers may offer you optional state-amount coverage. This has some disadvantages over the actual cash value coverage that comes standard with most policies. If your car appreciates in value, you’ll only receive the maximum stated amount in reimbursement if it is stolen or destroyed. However, if it depreciates, you’ll only receive the market value of your car on the day it was stolen or destroyed.
As with all auto insurance, your classic car insurance quote will be based in part on your driving record. Some states even require that you have a minimum number of years of driving experience.