The major difference between classic car insurance and a regular policy ultimately comes down to how you’ll be compensated in the event of a total loss. With regular car insurance, you’re usually only covered against the actual cash value of the car – which roughly works out to its replacement cost, minus any depreciation that has taken place since you’ve owned it. Since a regular car begins to depreciate the moment you drive it off the lot for the first time, the value of your automobile is essentially always going down.
With classic cars, on the other hand, the situation is inverted as they essentially always go up in value. This is especially true when you take good care of them or invest a lot of your own money in restoring them. A classic car insurance policy will take this into consideration, whereas a traditional auto insurance policy wouldn’t.
Classic Car Insurance vs. Regular Policies: Breaking Things Down
Most classic car insurance policies will also include certain provisions that you wouldn’t find with a traditional policy, like roadside assistance or auto show medical reimbursement. To speak to the former, your policy would have built-in protection in the event that you were ever driving your vehicle and it broke down. This would include towing with ONLY a flatbed truck to prevent excess wear and tear.
Auto show medical reimbursement takes into consideration the unique way that you actually use your classic car. Your provider understands that you’re probably not driving around in your antique vehicle to take the kids to school or to go to the grocery store. You are, however, likely going to be showing off your prized possession at an automobile show or a similar type of event in your area. Therefore, this type of protection would offer coverage in the event of an accident that causes “unexpected, unintended bodily injury.”
Other examples include coverage for spare parts (which themselves are usually unique and costly), traveling coverage, coverage while you are away from your car while it is being displayed and more.
Classic Car Insurance Requirements
It’s equally important to understand that every “old car” doesn’t automatically equal a classic car. Requirements usually vary from state to state, but it all usually breaks down as follows:
- A classic car is one that is between 19 and 24-years-old that is in good working condition and that is worth more than other cars of the same make, model and year. To meet this qualification, a car will typically need to have been restored.
- Cars that are 25-years-old or older are usually deemed antique cars.
- Cars that have been significantly modified in terms of their engine, their body or other major factors are deemed as “modified cars.”
- Kit cars are still classic vehicles, but they are “representation” or “replica” vehicles.
At Marine Agency, we offer classic car insurance policies designed to cover all of these unique types of situations and more. We also cover antique trucks and other large-sized vehicles that most other providers will not. If you have a vehicle with value to protect, we’ll be by your side every step of the way.
Key Takeaways:
- If you own a classic car, never assume that your regular car insurance will be enough to protect you in the event of an accident.
- You need to partner with a classic car insurance company that has experience with these particular types of vehicles.
- This will give you a more precise level of protection in terms of the age of the vehicle, the amount of money you’ve put into restoring it (if applicable), the amount you drive it and more.
If you’d like to find out more information about the ins and outs of classic car insurance, or if you’d just like to speak to an expert about car insurance quotes in your area, please don’t delay – contact Marine Agency today.
