Taking out insurance for your classic car is not the same as taking out insurance for the car you drive every day. When it comes to car collectibles, there are many variables, including how old your classic car is, how it will be used and how it will be registered. There is also no clear answer. Different states have different rules and guidelines for what actually qualifies as a classic car. Although the terms are often used interchangeably, there is a difference between antique, vintage and classic cars. Here you will find a general overview of how old an antique car must be to qualify for classic car insurance. There is more than one definition of 'classic car' and they can vary greatly. For example, the Classic Car Club of America defines a classic as a "beautiful" or "characteristic" car built between 1915 and 1948. However, for registration purposes, many states consider cars of that age to be antique or vintage cars. (Consult your state's specific laws to review guidelines.)
From what age is a classic?
For insurance and registration purposes, the age of a classic car is in most cases at least 20 years old, but not older than 40 years. If you are going to register (and insure) it as a classic, it should have remained in its original design and specifications. This means that any restoration must remain consistent with the way the car was originally built, including the types of materials used in the interior and the types of parts used in the engine. It also means that no modern details can be added; For example, an MP3 player or a built-in GPS navigator in a 1988 Mustang is a no-go.
Counting the costs
You may be surprised to learn that in some cases it can actually be cheaper to insure a classic car than it is to insure a regular car, even though the insurance process works in much the same way as a standard policy.
Your insurance terms are for one year and include collision, liability, and comprehensive and uninsured or underinsured motorist coverage. Your country's mandatory liability coverage applies to your classic car. In most states, classic car insurance is required even if it is not driven. However, some states allow you to drop coverage on a vehicle that is not being driven, provided you surrender the tag and registration.
Why the prices of classic cars can be lower
The reason prices are often lower is because of the restrictions on classics. When a car is registered as a classic with the state, that state may have certain restrictions, such as when it can be driven, where it can be driven (events such as car club meetings, car shows, parades, etc.), or how far it can be driven . can be driven. If a car is registered as a classic, this designation may prohibit its use for regular daily transportation.
When a car spends more time in the garage than on the road, the chance of accidents or other damage decreases – which can also lower rates.
Cars can become more valuable with age
However, you should not assume that you will always pay less for an older car. In fact, owning a classic car can be a worthwhile investment, and your coverage will reflect that. Insurance companies recognize that a well-maintained classic car will eventually increase in value rather than decrease in value. Their parts are harder to find, and if properly restored and cared for, classics will often be more valuable than new cars.
Much of the cost and sometimes counterintuitive variables are knowninsurance for your classic cardepends on factors such as where you live, your driver's license, how your car is registered and how it will be used. Guidance with yourinsurance agentis the best way to explore your options and make the choice that's right for you.
