Classic car collection is a hobby pursued by many. Classic car collectors and aficionados spend years to find out rare cars and spend significant amount of money to buy them and maintain them.
General car insurance policies are not valid for classic cars because of several reasons such as – it is tough to find market value, maintenance schedules can be unpredictable, the costs of the cars are significantly high, etc. Therefore, insurance companies have come out with specific classic car insurance plans by understanding the preciousness of the vintage car.
Classic car insurance is distinct from general car insurance because it protects expensive cars which are supposed to be driven as a hobby but not as regular mode of transportation. This insurance is also known as collector car insurance because these cars are owned for the purpose of collection. There is a common misconception in car owners that it is cheaper to get car insurance if their cars are driven less. They need to know that less driven cars are far more expansive to insure than cars driven daily.
Benefits of Classic Car Insurance
Classic car insurance benefits are dependent upon the insurance company’s policy guidelines and type of car to be insured. Most of the classic cars can be segmented as prestige motor vehicles, luxury cars, sports cars and modified cars. For these cars, owners can avail following covers:-
Comprehensive Coverage : This type of coverage is the wide-ranging insurance option but at the same time, it is the costliest also. For classic cars, owners’ major consideration is the quality plus extent of coverage instead of insurance price. Car owners can compare the insurance costs with the forecasted replacement or repair costs of the car for having a better understanding about the cost estimates. Sometimes, replacement is never an option for rare vintage cars. If car owner has a modified car, then one needs to know that common car insurance companies would deny providing insurance coverage as the vehicle falls under the category of non-standard motors.
Third Party Only Liability Coverage : This insurance coverage is most fundamental and cheapest of all types of insurance covers for classic cars. This is often not recommended for classic cars because it does not provide protection to the car’s replacement value. This coverage is required to carry out the lawful obligations under the regulations of Road Traffic Act. These obligations include the injuries to the insured vehicle’s other passengers and injuries to the third parties by the insurance holder and/or other passengers of car in an accident. However, there will be no coverage against injury to the car driver and damage to the car but a claim can be made against the policy of the other drivers if they are responsible for the accident. Unlike comprehensive insurance coverage, this is difficult to find online alternative for third party only insurance.
Third Party, Theft and Fire Coverage : This is extended version of third party only insurance where along with third party liability coverage, car owners can get paid for the car replacement or repair if it is damaged by fire or is stolen. However, this is impossible to find a classic car with low replacement value but still, car owners should make sure if repair and replacement costs are higher or not.
Other Related Covers : Both, comprehensive coverage and third party, theft and fire coverage are similar in cover aspects but former one has an upper hand in terms of claims acceptance if car owners cause damage to their own classic cars. There is supplementary coverage for personal effects, windscreens, car musical equipment, car stereo, personal accident injury, death, extensive foreign travel coverage and a free green card.
Types of Classic Car Insurance
Classic cars are insured on the basis of their value and their insurance plans can be divided into following two types:-
Stated Value Insurance
Under this insurance, insurance holders are entitled to state the value of the car which can permit them to look at the car’s depreciated value. The real problem may persist during the actual depreciation of the car with incomplete insurance against the stated value of the insurance holder. Therefore, it is always advisable to go through the fine print.
Agreed Value Insurance
Agreed value insurance is where classic cars are insured completely to their agreed value confirmed by both the parties. There are no deductibles for this kind of insurance and there will be no depreciation of the car value making it a risk-free and optimum choice for the classic car owners.
Various Classic Car Insurance Companies
There are many classic car insurance companies which are specifically providing this insurance. These insurance companies are as follows:-
American Collectors Insurance
American Collectors Insurance provides agreed value insurance for collector cars and collectibles. They have an experience of 30 years and their policy features following inclusions:-
- Zero deductible
- High value vehicle program
- Collectors labor and towing plan
- Agreed value coverage
- Inflation guard
- Freedom tier along with the flexible usage
- Mileage plans
- Vehicle restoration plans
- Repair and spare parts coverage
- Regular coverage for lately obtained cars
- More deductible alternatives and higher liability limits
J C Taylor Insurance
J C Taylor Insurance provides coverage for antique and modified vehicles. They provide similar coverage to first-time owners as well as museum collections. They cover following classic cars which are 19 years or older in age:-
- Muscle cars
Leland West Insurance
Licensed in 48 states , Leland West Insurance is known for providing guaranteed agreed value along with complete commuting. They have more than 25 years of experience in this field and their policy highlights following features:-
- Agreed value coverage
- Multi-car discounts
- Low premiums
- Classic car repair at the user-desired place
- A+ rating by AM Best company
- Lifestyle tailored guidelines
- Complete glass safety coverage
- Accessory coverage
- Trip interruption coverage
- Spare parts coverage
- Car shows medical payments
- Countrywide roadside assistance
- Supplementary coverage for newly acquired cars
- Personal electronic accessories coverage
All these features make Leland West a perfect host to guarantee the safety of your classic vintage car.