Here's what you need to know...
- Make sure you and your insurance company agree on the meanings of the terms “classic” and “antique”
- A typical car insurance company may not offer the coverage you need on a specialized vehicle
- Look into a company that offers the option of Agreed Value or Stated Value
If you have an antique car or a classic car, how much car insurance coverage should you carry? No matter what type of car you drive, you need to have the proper insurance coverage.
If you have an antique car as a hobby or as a dream come true, you still need to cover it with insurance.Even if you only drive the vehicle once in awhile, it is important to have the proper insurance to cover it.
An antique car is an investment and the best way to protect it is with insurance. This brings up the question, how much insurance should you carry on an antique?
Read on to learn some of the specifics and then use the FREE tool on this page for a free car insurance comparison!
Read More: How Much Car Insurance Coverage Do You Need
Table of Contents
What is considered an antique car?
Before the question of coverage is answered, it should be understood what an antique car is. There are many different categories of cars including exotic, collectible, and antique cars.
- Antique – Generally speaking, if a car is more than twenty-five years old, it is considered an antique.
- Classic –Be careful, because in some circles the words “antique” and “classic” are interchangeable whereas in other circles the word “classic” means a car that is 50 years old or more.
When speaking with an insurance company, be sure to ask their definition of these words.
There is also a difference between an antique and a car that is just really old. The condition of the car is also what qualifies it as an antique. A car that is an antique has usually been restored, is well taken care of, and has some resale value.
Its value increases with time instead of depreciating. Just because a car is old doesn’t mean it should be considered a classic or an antique. Insuring an old car is not the same as insuring an antique car.
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Should you get coverage through a regular car insurance company?
Some people think that going with their family insurance company is a good idea because insurance companies typically offer a discount for multiple cars and policies, but that’s not always the best choice.
A typical car insurance company will not take into consideration the restored value of the vehicle. They only take into consideration what you paid for the vehicle or the actual cash value.
For example, if you paid $8,000 for a car that needed a lot of work and you put an equal amount of money into restoring the car, you would have spent $16,000. But now that the vehicle is in mint condition, it could sell for $50,000.
If you go with a typical policy, you would only receive $8,000 should something happen to your vehicle.
If you are thinking about skimping on insurance because you only drive your vehicle to and from car cruise events, think again. Car cruise events are often crowded with a lot of vehicles in the mix.
It is one of the most likely places to receive a fender bender or worse. Don’t jeopardize the value of your car just to save a few bucks. If you are going to spend the money to make a vehicle into a true antique or classic car, spend the money to protect your investment.
Other Antique Car Insurance Options
To make sure your antique car is properly insured, you can go through a standard company that accepts Stated Value Insurance or Agreed Value Coverage. Some insurance companies offer these types of coverage while others do not.
In Stated Value Insurance, you state the value of your car and that is the amount it is insured for. Of course, you need to provide proof of the number you come up with.
Some Stated Insurance requires that you carry a deductible, so make sure you discuss this with the company.
Agreed Value Coverage is similar to Stated Value except that both you and the insurance company present a value based on research, negotiate, and come up with a number you both agree upon. This final number is what the car is insured for, period.
Remember, you want to insure your vehicle for its replacement value, not what you paid for it or what you put into it.
Antique Car Insurance Quotes Online
Choosing which company to get coverage through for your antique car is important. Using an online comparison tool can show you different companies and what type of coverage they offer.
You can see the rates you would pay and decide which company would best cover your antique car. Protect your investment and enjoy your antique car with no worries. Use our online auto comparison tool now to find the proper antique car coverage!
- https://www.autobytel.com/sports-cars/car-buying-guides/top-10-2015-exotic-cars-126019
- https://www.carsdirect.com/classic-cars/classic-car-classifications-antique-vintage-and-classic
- https://www.cbsnews.com/news/are-you-missing-out-on-car-insurance-discounts/
- https://carcruiseguide.com/events/
- https://hhrvresource.com/sites/default/files/dfiles/Stated_vs_Agreed_Value.pdf
- https://www.autoblog.com/2011/02/19/insurance-standard-vs-agreed-value/
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Case Studies: Determining Car Insurance Coverage for an Antique Car
Case Study 1: Liability Coverage for Basic Protection
John owns an antique car that he occasionally drives for pleasure. He decides to carry liability coverage to meet the legal requirements and protect himself against potential claims if he causes an accident. John opts for liability coverage with limits that comply with the state minimum requirements.
Case Study 2: Agreed Value Coverage for Complete Protection
Sarah owns a valuable antique car that she displays at car shows and events. To ensure comprehensive protection, Sarah opts for agreed value coverage. This type of coverage allows her to establish an agreed-upon value for her antique car with the insurance company. In the event of a covered loss, Sarah would be compensated based on the agreed value, rather than the car’s depreciated market value.
Case Study 3: Classic Car Insurance for Specialized Coverage
Mike owns a classic antique car that he restores and showcases at vintage car exhibitions. He understands the unique needs of his antique car and chooses to obtain classic car insurance. This specialized coverage is designed specifically for antique and classic cars and offers benefits such as agreed value coverage, flexible usage options, and coverage for spare parts.
Case Study 4: Additional Coverage Options for Enhanced Protection
Samantha owns a rare and highly valuable antique car. She wants to ensure maximum protection for her prized possession. Samantha chooses to enhance her coverage by adding options such as comprehensive coverage, collision coverage, and umbrella insurance. These additional coverages provide an extra layer of protection against various risks and potential losses
Frequently Asked Questions
How much car insurance should I carry on an antique car?
The amount of car insurance you should carry on an antique car depends on several factors, including the value of the car, its usage, and your individual needs. It is generally recommended to carry adequate coverage to protect the value of your antique car in case of damage or loss.
What types of insurance coverage are available for antique cars?
The most common types of insurance coverage available for antique cars include:
- Liability coverage: Provides protection if you cause an accident that injures someone or damages their property.
- Comprehensive coverage: Protects your antique car against non-collision events like theft, vandalism, fire, or natural disasters.
- Collision coverage: Covers damages to your antique car resulting from a collision with another vehicle or object.
- Agreed Value coverage: Offers coverage based on a pre-agreed value for your antique car, ensuring you receive the full agreed amount in case of a covered total loss.
How can I determine the value of my antique car for insurance purposes?
Determining the value of an antique car can be challenging. It is recommended to consult with a professional appraiser who specializes in antique cars. They can provide an accurate appraisal report that will help you determine the appropriate value for insurance purposes.
Are there any special requirements or restrictions for insuring antique cars?
Yes, insurance companies may have certain requirements or restrictions for insuring antique cars. These can vary, but commonly include:
- Age restrictions: The car must typically be at least 25-30 years old.
- Limited usage: The car may have restrictions on how often it can be driven, such as for show or exhibition purposes only.
- Secure storage: Insurance companies may require you to store the antique car in a locked garage or storage facility when not in use.
Can I add my antique car to my regular auto insurance policy?
While it is possible to add an antique car to your regular auto insurance policy, it may not provide adequate coverage for the unique needs of an antique car. Regular policies often have limitations on the value, usage, and coverage options for antique cars. It is recommended to consider specialized antique car insurance policies that offer tailored coverage for these vehicles.
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Written by:
Laura Berry
Former Licensed Insurance Producer
Laura Berry has experience as a licensed producer selling life, health, and property insurance coverage for both Allstate and State Farm. She has dedicated many hours to helping her clients understand the insurance marketplace so they could find the best car, home, and life insurance products for their circ*mstances.While she currently helps businesses take advantage of the federal R&D tax...
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Written by Laura Berry
Former Licensed Insurance Producer
Reviewed by:
Joel Ohman
Certified Financial Planner
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida.Joel...
Full Bio →
Reviewed by Joel Ohman
Certified Financial Planner
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