This brings up the question of specialty vehicles such as antique cars. 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 car? Read on to learn some of the specifics and then use the free tool on this page for a free car insurance comparison!
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.Generally speaking, if a car is more than 25 years old it is considered an antique. Be careful, because in some circles the word “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.
Should you Get Coverage Through a Standard 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 the big difference is the terminology. 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.Stated Insurance is basically where 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, you 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.
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