Classic Car Insurance

A buyer’s guide

By Liane Laskoske

Whether you bought your car off the showroom floor this year or 25 years ago, one thing doesn’t change: you still need to carry insurance on it. How much and the type of insurance you need varies from state to state, but you still need to find a company that will cover your investment.

Special Considerations

Every company sells insurance for everyday cars. But what if your prize is a 1963 Ford? Or a Studebaker? Or a Pinto? If your car is 25 years or older, or the model has been retired, you may have a classic on your hands and you may need special insurance to cover your treasure. Remember, though, there will be restrictions on the use of the vehicle if you have it categorized as a classic – you’re trading some freedom for a lower registration and insurance cost.

Most older cars aren't eligible for full insurance, due to depreciation of the vehicle. The insurance companies use a chart to figure the insurance on your vehicle by year, and they don't care if it's a 2008 Chevy or a 1953 DeSoto. You will not be able to get comprehensive or collision on any car over a certain age, no matter the market value of the car. So, if you know you have a classic on your hands, you should not settle for basic insurance.

Shop Around

With a little searching, you can find several companies on the Internet who handle insurance for classic vehicles. Recently, even major insurance companies have developed programs for antique, classic and collector vehicles. Both Progressive and www.autoinsur.org have antique and classic vehicle insurance in addition to their regular offerings.

Most insurance for classic and antique cars will not allow for daily use of the vehicle. If the vehicle is registered as such, there are use limits put on by the state as far as how often or even when you can drive the vehicle. PA insurance used to have a constraint that you could not drive an antique vehicle any day but Sunday and never after dark, but that changed due to pressure from car shows and collector groups.

Other insurance companies followed suit in the change – for example, www.americancollectors.com does not restrict owners to using their cars for "parade use" only and allows driving up to 5,000 miles per year. Another, www.classicins.com, offers insurance programs with no limit as far as age of driver or car, or miles driven per year.

If you’re a car nut, you know what your classic is worth. You probably treat your baby with care and respect by storing it in a safe place and driving it only on special occasions. On top of that, a classic vehicle insurance policy is the best investment you can make to care for your vehicle.

It used to be we could depend on the reputation and reliability of North American cars to meet our standards - but could it be the times are changing? Here in the U.S., overseas models are continuing to rise in popularity. Find out why!

If you love your car, you’ve got treat it right – stock will never do for your hot wheels! Whether it’s for performance or just for the look, aftermarket parts can turn that car you just brought home into your own pimp ride.