If you have a classic or collector car, you know its value. Whether you drive on public roads or mostly shine and preen for shows, your collector vehicle needs insurance benefits that go beyond a simple personal auto policy. Collector car insurance can be tailored to meet your needs and protect your investment.
Property insurance for collector cars
Property damage insurance for classic and collector vehicles goes beyond simple collision insurance and comprehensive coverage, which responds in cases of theft, storm damage, vandalism, or other non-collision events. Collector auto insurance can provide coverage for spare parts, vehicles under construction or restoration, and safety equipment and tools. You may even be able to work out an agreement on keeping a totaled vehicle while still receiving your full claims payment.
Policies can insure your vehicle while in use, garaged, hauled, and shown at special events. Some policies even offer no-attendance coverage, meaning you don’t have to be physically at the location where your vehicle is being displayed when damage happens. That’s a big plus for anyone who lends their vehicle to community events and can’t be there for the entire affair.
Most classic car insurers require a minimum value for the vehicle to qualify for this specialty coverage. The vehicle must be of a certain age (often 20 years or older) and used as a hobby or for pleasure cruising, not as commuter transportation. That said, if you collect newer high-value or exotic vehicles, you may want to look at a luxury car insurance policy. Luxury auto insurance is designed for regular users, not just hobbyist driving. There may also be requirements on garaging the vehicle, and insurers are pretty strict about your driving record, often requiring no alcohol-related infractions and setting a maximum on collision claims.
Both collector and luxury car insurance allow you to opt for original equipment manufacturer (OEM) parts and to determine the amount of the payout at the time you purchase the policy if the car is deemed to be totaled after a claim. That is known as the “agreed value.” This formula is unique to collector cars, instead of paying after the claim based on the value less depreciation. Many insurers will also let you pick your preferred repair shop. Preferably, you will want the policy to guarantee flatbed towing in the event of a breakdown as regular tow trucks can damage the underside of the vehicle if it has low clearance.
It is important to note that collector car policies contain a mileage limit, which is generally no higher than 5,000 miles annually. And, the insurance company may require the car to be stored in a fully enclosed garage.
Classic Auto Insurance is for More Than Just Cars
A collectors auto insurance policy can cover many types of vehicles, including:
- Antique cars
- Restored vehicles
- Hot rods
- Modified vehicles
- Replicas
- Vintage motorcycles
- Classic pickup trucks
- Sports cars
- Retired commercial, government or military vehicles
If you have a muscle car or a hot rod, or simply have made modifications to a vintage vehicle, you may wish to cover the cost of specialty paint, trim, wheels, or interior treatments. All these can be worked into a collector car policy.
If you plan to rent the car out for a special event like a wedding, be aware that can be considered as commercial use and excluded for coverage. Use of your vehicle as a rental or limo will significantly change your insurance needs, so talk to your insurance agent about any income-generating operations that include your classic car.
Living in an area that is prone to windstorms, flooding, or wildfire may complicate protecting your classic car or truck. The good news is some collector auto insurers offer disaster relocation coverage, which provides financial help to move your vehicle out of harm’s way.
It’s also a good idea to get uninsured motorist coverage for your vintage vehicle. If you are hit by someone without insurance and they don’t have the personal assets to pay for the damage out of pocket, you would be left with uncovered repair costs or even a total loss. Uninsured motorist coverage is an economical way to gain financial protection for these circumstances.
Liability insurance for collector cars
A collectible car might not be driven as much as a regular vehicle, but you still face liability risks. In fact, some of your liability risks may be higher with a collector car than a regular one. For example, your vehicle likely lacks some of the safety devices (such as anti-lock brakes) of newer models. And if you have modified or restored your vehicle, you could have accidentally impaired its structural strength, allowing parts to come loose or fly off while driving, injuring others or damaging their property.
Liability insurance can help in these circumstances as long as the vehicle was roadworthy when you took it out and you followed statutory rules on modifications. A liability policy will help with payments you owe for injuries and property damage to others as well as your legal defense if you should be sued over the use of your classic car. Most states require some form of liability insurance for collector vehicles. Your insurance agent will help you understand and comply with those laws.
If you will be driving passengers, you might also wish to purchase medical payments coverage, which helps cover treatment for those in your vehicle who are harmed in an accident.
Get guidance from a collector car insurance agent
Every classic car and luxury auto insurance policy is different, based on the type and use of the vehicle. For example, you may wish to include coverage for roadside assistance and related collectibles, such as signs, posters, or other paraphernalia. An independent insurance agent can help you find and sort through options and negotiate coverage that works with your needs and budget. Locate a classic or luxury car auto insurance agent near you today.