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Classic Car Insurance Requirements

Learning about classic car insurance requirements will allow you to accurately quote your classic car insurance requirements through our partner network of top tier companies.  We provide classic car insurance for authentic classic cars, modified reproductions and kit cars.

Classic Car Insurance Requirements-The Difference

Learning about the differences between a standard auto insurance policy, and the classic car insurance requirements when insuring a classic car, will be helpful to you, so that you are aware of the limitations associated with insuring classic vehicles. First, you need to be sure that your vehicle can be truly categorized as “classic.”

Not every insurer will agree on the definition of a classic car, so it is important for you to understand classic car insurance requirements and to talk to your insurer after receiving your online quotes to be sure that the company will consider your vehicle a classic car. Most insurers will actually accept classic cars on their standard car insurance policies, but you may face high premiums if you choose to do this. The agreed value clause, which pertains to the minimum amount that you will receive in the event that your vehicle is in an accident or stolen, and is the primary benefit of purchasing specialty insurance, will not apply when classic cars are placed on standard auto policies.

The “agreed value” will be the present prices being offered in the market, that will determine what the average insurance company will pay you in the event that you make a claim. For classic cars, this often presents a problem as working out their market value is not easy. In many cases, the insurer will end up undervaluing your vehicle and if they do this, you will be forced to take that amount, even if you feel that it is unfair.  It’s important when understanding classic car insurance requirements that you and your insurer agree upon a value that is representative of the car in today’s marketplace.

Classic Car Insurance Requirements-A Price Sensitive Market

The classic car market is very price sensitive and market values for the same model of a car can easily vary between 50% to 500%. With the absence of an agreed value clause, a classic car that is a limited edition, is in mint condition, or has providence, will never bring an amount equal to what it is truly worth. Remember that most insurance companies, especially mainstream ones, will look to pay you as little as they possibly can.

You need to realize that there will be stringent rules attached to a classic car insurance policy that incorporates an agreed value clause.  Classic car insurance requirements such as a yearly mileage maximum is one such rule, as it is expected that a classic car will be driven less, and the classic car insurance policy will reflect this guideline. Other guidelines that you may have to adhere to are adding security measures to your vehicle, and putting a limit to the number of classic car shows that you can participate in.

Classic Car Insurance Requirements-The Bottom Line

The bottom line is that you are going to have to pay more if your car is especially rare and desirable; however, given all the restrictions that are placed on classic car insurance policies, the coverage is often not that expensive and thanks to classic car insurance requirements, it is often less expensive than regular auto insurance. The most important feature is the agreed value clause, and if you want to get the insurance policy that you think is best, you may need to pay higher premiums.


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Posted in: Auto Insurance, Insurance