Insuring your classic car poses a few extra challenges than buying car insurance for any old beater. The differences in coverage can be dramatic, and depending on exactly how you plan to use your classic, your options will vary.
You'll want a different type of policy, for example, if you plan to drive that classic every day than if you're just taking it on a Sunday drive through the Texas countryside once a month or to local auto shows. Here's what you need to know when choosing your policy.
What's the difference? Classic vs. Standard Policies
Classic policies recognize that your vehicle is worth more than the sum of its parts. An agreed value policy, popular for classic car owners, allows you to agree with your agent on the value of the car if totaled; this can result in higher premiums but also covers your investment beyond the basic repairs if something terrible happens.
However, classic car policies are not generally intended for everyday vehicle use. Some may limit the amount of mileage you can put on the vehicle. You'll likely be asked if you have another car you intend to use for everyday purposes; if so, your classic car insurance rates will be significantly lower.
Maintaining Adequate Coverage
If you can't commit to driving 5,000 miles or less each year (or whatever that classic car policy stipulates), you might end up buying a standard car insurance policy with enough coverage to keep your classic protected. A standard policy can cost a bit more, but it also depends on the make and model; a high-performance classic Porsche will require a bit more coverage than a 1960 VW Beetle.
Whenever you complete a restoration project, make sure you notify your agent. The more you increase your car's value, the more coverage you (might) need to purchase to make sure it's covered. Talking to our independent agents is a great first step to compare quotes on both classic and standard auto insurance policies, so it's easier for you to tell what exactly your options are.
