Case Study: Compare Classic Car Insurance vs. Regular Auto Insurance

If you are a classic car owner, regular auto insurance will not suffice in meeting your needs.  Compare classic car insurance to regular car insurance and you will find that regular car insurance rates will be higher.  Classic car insurance rates are significantly lower.  This really has to do with the fact that they are driven much less therefore the risk is less.

One of the big differences when comparing classic car insurance and regular auto insurance is the way in which they determine the value of a vehicle.  Since typically, vehicles depreciate in value over time, traditional auto insurance companies use a downward scale when determining value.  This is not the case for classic cars however. 

Well-kept classic cars tend to appreciate in value so this must be taken into consideration.  Because of this, most classic car insurance policies have an agreed upon value.  This value is agreed upon by both the owner and insurer.  This can also be called a guaranteed value by some insurance policies.  If an accident happens and there is a total loss, a regular auto insurance company would not award the actual value of the vehicle.

Next, certain qualifications must be met by both the driver and vehicle in order to qualify for classic car insurance.  The car and driver must both meet certain age requirements.  For the car, it must fall into the guidelines the individual insurance company has set.  This is usually at least 15 years for some collector cars and at least 25 years for classics.  Normally the driver has to be a minimum of 25 years of age with a clean driving history in order to be insured. 

A classic vehicle cannot be your everyday mode of transportation.  Millage restrictions will be put into place that typically only allow for trips to and from a car show or parade and a few leisurely drives each year.  You will also find this stipulation on cars that obtain historic license plates that are available in many states. 

The classic car will also have to be kept in a secure storage location such as a garage. The vehicle must be protected from the elements and street, driveway and car port parking just doesn’t allow for this.   If the car is considered valuable, often requirements will be put in place for extra security and fire protection such as sprinklers.  As you might already have realized, these are not requirements that a regular auto insurance company requires.

Another area to look at when you compare classic car insurance verses regular auto insurance is the way in which classic car insurance claims are handled.   When filing a claim would you rather speak directly to a company representative or insurance adjustor or is this a task that they have outsourced possibly to someone with less than stellar customer service skills and an inadequate knowledge base when it comes to classic cars. 

If a repair needs to be made, a regular car insurance company is not going to take the time to make sure and find a mechanic shop that specializes in classic cars. 

They will typically want to get the car fixed for the least amount of money in the quickest amount of time. 

Hagerty Classic Car Insurance is one company that has specialists on hand to help locate car parts and the right mechanic to complete the repairs.  Since the company specializes and only deals with classic and collector vehicles, they are able to offer more services specifically geared towards a classic car enthusiast taste.  Hagerty also offers online valuation tools which can be especially helpful in determing the amount to insure a classic car for.  There are not any other well know companies in the USA that provide the services along with the knowledge base that Hagerty gives its classic car customers.