If you are the proud owner of a classic car, there is no doubt that you’re interested in car insurance. Classic car insurance is, by far, the best way to protect a vehicle someone has poured time, attention, and financial resources into. To help owners of classic vehicles find the best option for collector car insurance, we’ve compiled a list of the five best classic car insurers for 2022.
What is classic car insurance?
Classic car insurance is designed to cover “special” cars, worth more than Kelley Blue Book (KBB) might indicate. Imagine a 1966 Ford Mustang, restored to better-than-new condition and driven only on Sundays. Classic auto insurance companies provide coverage for cars like this Mustang. They also protect:
- Antique cars
- Hot rods
- Exotic and luxury vehicles
- Old trucks
- Military vehicles
In other words, classic car insurance is designed to cover vehicles that cannot be assigned a value based on traditional Blue Book value.
What’s the difference between classic or collector auto insurance and standard auto insurance?
There are at least four major differences between classic car insurance and traditional (standard) car insurance.
- Classic car insurance covers the car up to the amount agreed upon between the owner and insurer when the policy was written. Traditional auto insurance covers up to what the car is currently worth at the time of an incident — unless the driver has gap insurance that makes up the difference.
- To be covered by classic car insurance, a vehicle must meet certain criteria. A traditional insurance is easier to qualify for.
- Classic car insurance is typically cheaper than traditional insurance because the owner is not driving the car like they would a “regular” vehicle.
- Before deciding how much coverage is needed, a car owner will be expected to have their vehicle appraised by a third-party appraiser.
Types of collectible cars
In a nutshell, if a driver doesn’t use a vehicle for their everyday transportation, a vehicle may be considered collectible. Here are some examples of the types of vehicles drivers cover with a classic car insurance policy:
Antique cars
Antique cars are sometimes referred to as “veteran cars” or “Brass Era cars.” They were the first cars made, at the dawn of the horseless carriage. There’s considerable debate regarding just how old a car must be to be considered an “antique.” Some say anything built before 1914 is an antique, while others claim that any vehicle older than 45 years can be classified as antique. The exact description varies by insurance carrier, but the 1903 Cadillac Model A is the perfect example of a car any insurance company would agree is worthy of antique car insurance.
Vintage cars
Antique cars were about as basic as they come, with next to no features. Vintage cars — typically manufactured between 1919 and 1930 — offer a few more driver-friendly features. The 1925 Flint Model E-55 and 1930 Cadillac V-16 are examples of vintage cars.
Classic cars
To be a true classic car, it must be older than 25 years old. Cars of this age are in varying states of condition. The Volkswagen Beetle and Bugatti Type 57 are great examples of classic cars.
Hot rods
Some say that hot rods were the brainchild of bootleggers who customized their vehicles to outrun the law in the 1920s prohibition era. Since that time, car lovers have continued to enhance their vehicles, managing to make them drive fast and look cool at the same time. A hot rod is not a specific “type” of car, but the National Street Rod Association describes a hot rod as an automobile manufactured in 1948 or earlier that has undergone modernization to the engine.
Exotic vehicles
To be termed “exotic” a vehicle must be truly unique, one-of-a-kind, or one of a handful of models that were manufactured. Examples are one of Enzo’s original Scuderia Ferrari cars.
Luxury vehicles
A luxury vehicle is practically a work of art. Think 1933 Silver Arrow or 1954 Bentley R Type.
Vintage trucks
A vintage truck is one that was manufactured between 1919 and 1930. A good example is the 1927 Ford Model T 1 Ton Pickup.
Muscle cars
A muscle car is a vehicle with a little extra horsepower under the hood. Mustangs, GTOs, and Camaros are all examples of classic muscle cars.
Military vehicles
The military routinely sells unused and outdated equipment, including airplanes, jeeps, trucks, cars, and tanks. To be considered a collector vehicle (and eligible for classic car insurance), the vehicle in question must be from 1974 or earlier.
Source: https://www.fool.com/the-ascent/insurance/auto/best-classic-car-insurance/
