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The Basics of Classic Car Insurance

Car Insurance Basics

Almost all states require liability insurance for your automobile, which makes a lot of sense. Insurance protects both you and society as a whole. If you injure someone or damage property in an accident, insurance helps shelter you from the financial consequences. The same is true if another driver injures you. Medical care is expensive, and no one wants to be left to fend for themselves. Some drivers prefer coverage for damage to their car, regardless of who is at fault for an accident. This type of insurance is called collision coverage. Physical damage coverage is referred to as comprehensive coverage for situations that are considered “acts of God.” Comprehensive coverage kicks in if a tree falls on your car in a thunderstorm, for instance. These optional coverages come with a higher premium price, but many drivers decide to opt-in for peace of mind.

Antiques Roadshow

The latest model with all the bells and whistles may seem like the most valuable automobiles on the road, but these can pale in comparison to a pristine Model T or a classic roadster. Owning a standout classic car takes a particular type of person. These vehicles often require special maintenance or even total refurbishments, making them rather expensive to own. Furthermore, the insurance implications of a collectable car can be pricey. A “classic car” in insurance usually refers to a vehicle that’s at least 25 years old and in good working condition. Companies that insure classic cars tend to use the same policies for antique and vintage cars as well.

Insurance Matters

You’d be wrong to assume that classic cars can be covered under any old insurance policy. In most cases, proper insurance for classic automobiles must take into account their unique characteristics. Surprisingly, insurance for classic cars is often cheaper than newer vehicles. Lower prices are the result of several factors, including the fact that classic cars are more likely to be used as showpieces with much lower yearly mileage than a day-to-day vehicle. Policies for classic cars are written with the stated value or agreed-upon amount. This means the policy pays the total current cost if totaled. Sometimes an appraisal or photos of the classic vehicle are required to figure out the insurance terms, while most standard auto policies just go by the current market value. Before you embrace the open road, it is vital to ensure your classic car is insured adequately to cover its precious value.

by Nick Climan – Content Creator for Half Full Marketing

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