If you are the proud owner of a classic car, there is no doubt that you're interested in car insurance. Classic car insurance is, by far, the best way to protect a vehicle someone has poured time, attention, and financial resources into. To help owners of classic vehicles find the best option for collector car insurance, we've compiled a list of the five best classic car insurers for 2021.
Classic car insurance is designed to cover "special" cars, worth more than Kelley Blue Book (KBB) might indicate. Imagine a 1966 Ford Mustang, restored to better-than-new condition and driven only on Sundays. Classic auto insurance companies provide coverage for cars like this Mustang. They also protect:
In other words, classic car insurance is designed to cover vehicles that cannot be assigned a value based on traditional Blue Book value.
There are at least four major differences between classic car insurance and traditional (standard) car insurance.
In a nutshell, if a driver doesn't use a vehicle for their everyday transportation, a vehicle may be considered collectible. Here are some examples of the types of vehicles drivers cover with a classic car insurance policy:
Antique cars are sometimes referred to as "veteran cars" or "Brass Era cars." They were the first cars made, at the dawn of the horseless carriage. There's considerable debate regarding just how old a car must be to be considered an "antique." Some say anything built before 1914 is an antique, while others claim that any vehicle older than 45 years can be classified as antique. The exact description varies by insurance carrier, but the 1903 Cadillac Model A is the perfect example of a car any insurance company would agree is worthy of antique car insurance.
Antique cars were about as basic as they come, with next to no features. Vintage cars -- typically manufactured between 1919 and 1930 -- offer a few more driver-friendly features. The 1925 Flint Model E-55 and 1930 Cadillac V-16 are examples of vintage cars.
To be a true classic car, it must be older than 25 years old. Cars of this age are in varying states of condition. The Volkswagen Beetle and Bugatti Type 57 are great examples of classic cars.
Some say that hot rods were the brainchild of bootleggers who customized their vehicles to outrun the law in the 1920s prohibition era. Since that time, car lovers have continued to enhance their vehicles, managing to make them drive fast and look cool at the same time. A hot rod is not a specific "type" of car, but the National Street Rod Association describes a hot rod as an automobile manufactured in 1948 or earlier that has undergone modernization to the engine.
To be termed "exotic" a vehicle must be truly unique, one-of-a-kind, or one of a handful of models that were manufactured. Examples are one of Enzo's original Scuderia Ferrari cars.
A luxury vehicle is practically a work of art. Think 1933 Silver Arrow or 1954 Bentley R Type.
A vintage truck is one that was manufactured between 1919 and 1930. A good example is the 1927 Ford Model T 1 Ton Pickup.
A muscle car is a vehicle with a little extra horsepower under the hood. Mustangs, GTOs, and Camaros are all examples of classic muscle cars.
The military routinely sells unused and outdated equipment, including airplanes, jeeps, trucks, cars, and tanks. To be considered a collector vehicle (and eligible for classic car insurance), the vehicle in question must be from 1974 or earlier.
Bottom line: State Farm has played a role in protecting American families since 1922. Because they offer all types of coverage, they are one of the best classic car insurance companies to work with when a driver wants to bundle coverage and score discounts.
One attractive feature of working with State Farm is that they've been in the classic and collector car insurance business for many years. In fact, their employees even created a 1968 Camaro to use as a teaching tool. The "split" car demonstrates the differences between a car in its original state and one that has been modified or fully restored. It's a great way to help State Farm employees understand the added value of a classic car and why it must be insured in a different way.
Learn More: State Farm auto insurance review
Bottom line: Geico has the edge when it comes to mobile and online apps. As another company with a familiar name, Geico offers some of the best technology in the business, making everything -- from getting a quote to making a claim -- faster and easier. Geico's classic car insurance coverage is based on how much the vehicle owner and Geico agree the vehicle is worth. That way, if the customer is involved in an accident, their classic car can be made good as new. In addition, Geico offers up to $500 coverage for spare parts, a nice bonus for classic car owners.
Bottom line: Not only does American Collectors offer perks like Spare Parts Coverage and Inflation Guard, the company also has a stellar reputation for coming to the aid of classic car drivers when they're stuck on the side of the road. American Collectors reimburses drivers for emergency expenses like towing and lock out. What's more, the company offers an impressive amount of features, including:
Bottom line: Grundy guarantees 100% of the vehicle's value if the car is totaled. And because they've been insuring classic cars since 1947, Grundy knows what drivers want. For example, unlike most classic car insurance companies, Grundy allows unlimited driving miles. While they don't want drivers using it as their daily car -- and still require drivers to have another car for everyday use -- they do not ask anyone to track their mileage or prove how little they're driving their classic car.
Bottom line: Safeco's classic vehicle coverage allows drivers to put up to 10,000 miles per year on their cars, 2,500 mile more than most carriers. This is perfect for snowbirds who want to bring the vehicle along as they escape the winter chill or couples who need an extra set of wheels on a semi-regular basis.
To be eligible for classic car insurance, the insured vehicle must meet minimum qualifications, which include:
It depends on the type of classic vehicle. While a classic car is at least 25 years old (depending on the insurer), antique cars are those that are at least 45 years old, and vintage cars were built between 1919 and 1930.
Driver criteria varies by insurer. Here are two requirements seen most often among classic car insurance companies:
Another way classic car insurance is different from standard car insurance is that the price depends on so many factors that it can be difficult to pin down an average rate. Generally, a driver will pay from $200 to $600 annually for classic car insurance coverage, unless their vehicle has an extremely high value. Here's a partial list of factors that go into determining cost:
In short, the answer to the question, "How much is classic car insurance?" depends on a number of factors. The cost of classic car insurance varies, depending on how much coverage a person requires and how valuable the vehicle in question is to repair.
The fact that the cost of classic car insurance varies so wildly can work in favor of the driver looking to save money. Here are some of the ways they can make that happen:
Important note: Drivers should not make the mistake of choosing a company solely because they offer the cheapest classic car insurance. Instead, they should work with an insurer with a strong reputation that will be there when needed. Classic car insurance cost should be just one of the factors considered when choosing the right insurer.
Chances are, you're already familiar with the terms associated with classic car insurance. That's because classic car insurance offers the same types of basic coverage as traditional car insurance. They include:
If you are at fault for an accident that causes damage or injury, liability will help cover the injured party's losses.
If you're in an accident with another party and there is damage to your vehicle, collision coverage will help make repairs.
If something happens, like a tree falls on your car or the vehicle is burned in a fire, comprehensive insurance provides coverage.
Medical coverage works in conjunction with your current health insurance to pay medical bills if you are injured in an accident.
Say you're in an accident and the other party is found at fault. If they don't have insurance coverage (or have too little to cover your damages) uninsured and underinsured motorist coverage kicks in.
As much as a driver pampers their classic car, it can break down like any vehicle. If it does, most insurers offer some kind of roadside assistance to get the driver (and their treasured vehicle) back on the road.
As much as you already enjoy your classic car, the experience can only be enhanced by knowing that you've done everything within your power to protect both the classic vehicle and yourself.
This will depend on the driver and the features that matter most to them. State Farm is best for bundling coverage, Geico for mobile and online management, American Collectors is great for roadside assistance, and Grundy Insurance protects rapidly appreciating vehicles. Finally, for drivers who can't stick to the 7,500 mile per year rule, Safeco allows for more miles.
You must be at least 25 years old, drive 7,500 miles or less per year in the classic vehicle, have access to another "everyday" car, store the vehicle inside, agree not to race, and keep up with maintenance.
Yes, because you don't drive as many miles.
Yes, full coverage is available and is a good idea if you can afford it.
Typically, no. Almost all classic car insurers require drivers to stay under 7,500 miles per year and want assurance that the vehicle will only be driven on "special occasions" like car shows and parades.
Car insurers typically limit miles to 7,500, although the number varies by insurer.
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