When it comes to the sedan or SUV that you drive to work every day or the minivan you use for family trips, the need for cheap insurance is a no-brainer. After all, almost every state in the U.S. requires at least minimal liability insurance, and responsible drivers know that the money paid in premiums helps offset the cost of any repairs, medical bills, or attorney’s fees that may come up after an accident.
With antique and collectible cars, however, the need for insurance is less about car accidents and more about finances. Yes, it’s still necessary to have some insurance if you ever want to take your vintage ride for a Sunday cruise, but more importantly, you must protect your investment. For this reason, not only do you need to insure your antique car, you should do so with a specialty policy.
It covers the real value of the car.
We all know that if you drive a brand new car off the lot and get in an accident five minutes later, your insurance will have already depreciated the value, and you won’t be reimbursed for the entire price of the car.
With specialty policies, however, the insurance coverage is based on “agreed value” a monetary amount that you and the insurer agree upon, and that includes things like the car itself, modifications made to it. The time and effort put into the restoration.
While an appraisal may be required if you want coverage for more than the apparent value of the car, in many cases, photographs, and an itemized list of mods and replaced, parts are enough to determine the value used. Remember also that specialty insurance companies understand that, unlike regular cars, antiques appreciate.
Less expensive than standard insurance.
It may seem odd, but when it comes to antique cars, cheap car insurance comes from the specialty companies, not from your regular agent.
Partly, this is because specialty policies come with specific restrictions about the age of drivers (25 in most cases, 21 in some), the amount of use (limited street driving, shows and club outings okay), and the method of storage (cars must be garaged when not in use), and therefore there is less risk of an accident or theft. In many cases, a car valued at $10,000 can be insured for less than $100 a year.
More benefits than standard policies.
Along with the cheaper premiums, many antique auto policies come with deductibles ranging from $250 down to nothing. Again, this is related to risk – limited use, and greater protection when stored means less risk of theft or accident.
These policies are also written with antiques and collectibles in mind – rather than charging more money for engine size, they look at age – is it an antique (over 25 years old), or is it a modern collectible or exotic performance car? Collector car policies are not new. They’ve been offered in some form or another for at least fifty years.
Even so, statistics suggest that less than 50% of the registered antique and collectible vehicles in the United States are insured under specialty policies. For the best protection of your antique auto and your investment, look into a specialty policy today. If you’re not sure where to find a collectible insurer, ask your regular insurance agent for a recommendation. Here’s how to assess car insurance online.