Classic Car Insurance 101

Written By Charlotte Insurance on March 10, 2021. It has 0 comments.

a row of classic cars that are protected with the right classic car insurance policy

You’ve spent months, perhaps years, bringing your beloved classic car back to life. You’ll spend much longer keeping it that way. And you love to show it off to fellow classic car enthusiasts, talking shop and soaking up the appreciation for a fine automobile. The kind they just don’t make anymore.

With all of that invested time, money, and hard work, your classic car must be protected with the right kind of insurance coverage. Here’s what you need to know about classic car insurance.

What is Classic Car Insurance?

Unlike standard auto insurance, classic car insurance focuses on the value of the classic car, taking into account the age, modifications, and increasing value of the vehicle over time. This insurance is based around agreed value coverage. You and the insurer agree on the value of the vehicle, and therefore the coverage limits, based on an appraisal of your vehicle. This also means that over time, as your classic car increases in value, so too should your policy limits.

What Coverage is Included in Classic Car Insurance

Classic car insurance is not designed to give you the same level of coverage that your personal auto insurance policy does. That’s because a classic car policy will be written with the understanding (and requirement) that your classic vehicle isn’t used for daily commutes and other trips.

That being said, classic car insurance can include some protection you’ll be familiar with: liability, collision and comprehensive, uninsured/underinsured motorist, and personal injury protection. What’s most important for a robust classic car insurance policy are the additional features you can add to your policy specific to being a classic car owner:

Increased Replacement Cost: If your vehicle is stolen or totaled, and the actual value is higher than the agreed value coverage, this pays the difference.

Roadside Assistance: Similar to personal auto insurance, you’ll get help if you breakdown on the road. But only a flatbed tow truck will be used to prevent wear and tear on your vehicle.

No Attendance Required: Your vehicle will be covered while on display at an exhibit or car show when you’re not present.

Auto Show Medical Reimbursement: While your vehicle is on display at an event or exhibit, you’re covered if someone sustains an injury.

Spare Parts Coverage: You’re covered if the spare parts, like tires, are damaged or stolen as part of a covered peril.

Cash Settlement Option: In the event your classic car is completely totaled or stolen, you can opt for a cash payment that doesn’t require you to replace or repair your vehicle.

Who Can Get Classic Car Insurance?

There are eligibility requirements for both vehicle and driver to qualify for classic car coverage. Every insurer will be a little bit different but these are the basic guidelines:

Classic Car Eligibility

Your vehicle must fall into at least one of these categories:

  • Vehicle must be at least 25 years old
  • Modern muscle car
  • Exotic vehicle
  • Modified vehicle

Your vehicle must follow all of these conditions:

  • Good condition and repair
  • Parked in a fully enclosed space at a secure location: garage, storage facility, etc.
  • Not used for daily community
  • Not a racing vehicle
  • The vehicle must be driven less than 7500 miles per year. (Exact mileage requirements may vary from insurer to insurer.)

Drive Eligibility

Not every driver can purchase classic car insurance, even if your vehicle is eligible. Here are the general requirements you must meet:

  • Be at least 25 years old
  • 5-10 years of driving experience
  • Good driving record
  • No more than one at-fault accident within the past three years
  • Own and use another vehicle for your daily commuting and driving needs
  • Agree not to race your classic car or drive it on a racetrack for any reason

Why Classic Car Insurance from Charlotte Insurance?

Your classic car is not the same as your everyday vehicle. It’s inherent value can only increase over time. It might be your passion project that you lovingly brought back to life, but it also represents a major investment of time and money. You need insurance protection that understands the effort that goes into maintaining and showing off your classic vehicle.

At Charlotte Insurance, we work with a multitude of insurers, including those who offer excellent classic car coverage. We’ll help you find the best protection for your classic car and its unique value. Contact us today to learn more!

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