Do I Need a Different Type of Auto Insurance for a Classic Car?

Once the weather gets nice, you'll notice people bringing out their classic cars and showing them off at cruise nights around town. If you've been bitten by the classic car bug and are thinking of buying one, you'll want to make sure you have the right insurance for your investment.
front of a red classic car

By definition, a classic car is one which is between 19 to 24 years old, and is in its original condition. Anything over 25 years old is considered an antique. While these may just be semantics, insurance companies use them for determining insurance rates.

Most cars depreciate over the course of their lifespan, but a classic or collectible car may increase in value. A specialty insurance policy may be needed when it comes to a classic car, because the book value of a car over 20 years old would be close to nothing. However, if that car has been restored, then it would certainly be worth more. In most cases, classic car owners can have a policy with an "Agreed-On Value" so if anything were to happen and the car became a total loss, you would receive that amount as opposed to the book value.

The other thing to consider when insuring a classic car is the amount of miles you drive. Some policies will restrict miles, allowing the owner to only participate in local cruise nights and parades. If you plan on enjoying your classic car and taking it longer distances, you'll want to communicate that to your insurance agent.

Is there any way to lower insurance rates for a classic car? As with all insurances, you can raise your deductible to lower your premium. That plan makes sense, especially if you don't drive your classic car very much. You can also add an alarm system to the car for an additional discount.

If you're putting your hard-earned money, time and energy into restoring a classic car, you'll want to make sure it is insured for a reasonable value. To find out more about specialty insurance that covers collectible cars, contact your independent agent.

Do you have enough coverage? Call Diamond Insurance Group at 903-891-4646 for more information on Sherman antique auto insurance.

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