Classic Car Insurance: How It Differs From Regular Auto Coverage

Classic car insurance is a specialized type of coverage designed for vintage and collectible vehicles. This coverage addresses the unique needs and risks of owning and maintaining a classic car.

One of the primary differences between classic car insurance and regular auto coverage is the valuation method. Classic car insurance typically uses an agreed-value policy, where the insurer and the policyholder agree on the car’s value when the policy is written. This value is based on the car’s condition, rarity and market value. In a total loss, the policyholder may receive the full agreed-value without depreciation.

Standard auto insurance usually relies on actual cash value, which factors in depreciation. This means that the payout for a total loss would be based on the car’s market value at the time of the claim, considering its age and condition. This valuation difference can be significant for classic car owners, as classic cars often appreciate over time.

Coverage and Usage Restrictions

Another key distinction between classic car insurance and regular auto coverage lies in the usage restrictions. Classic car insurance policies often have specific limitations on how the vehicle can be used. These restrictions are in place to protect the car’s value and ensure it is preserved for future generations.

For example, classic car insurance may limit the miles the car can be driven annually. This is because classic cars are typically not used for daily commuting or regular transportation. Instead, they are often driven to car shows, parades and other special events. Some policies may also require storing the car in a secure garage when not in use.

Specialized Coverage Options

Classic car insurance also offers specialized coverage options that cater to the unique needs of classic car owners. These options can include spare parts, restoration work and even coverage for attending car shows.

Learn More

Contact California Liberty Insurance to review your classic car insurance options and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.