After years of scouring the Internet, attending numerous car shows and hours of pleading with your wife, you finally got your classic dream car: a 1961 Ferrari GT California just like the one in the movie “Ferris Bueller’s Day Off.”
Cue the song “Oh Yeah” by Yello. “Beautiful … Oh yeah.”
However, before you let your child-like bliss get the best of you and you sit on those Italian leather seats and start making that throaty exhaust roar protect your new BFF with more than just a new sunshade.
So after all the trouble, research and money you spent finding the classic car of your dreams, don’t settle on daily driver car insurance policy when you should be buying classic car insurance.
Also known as collector or antique car insurance, classic car insurance protects your investment just like a standard car insurance policy but with some major differences:
- No NADA Here – Insurance companies typically use the National Automobile Dealers Association (NADA) guidelines to determine a car’s value in the unfortunate event it’s stolen or totaled but antique car insurance covers you for the Agreed or Guaranteed Value meaning your car is covered for the entire dollar amount it is worth.
- Say No to Depreciation – Some insurance companies, such as American Collectors, will automatically bump up a vehicle’s worth each quarter to protect your investment from losing value.
- Safety in Numbers – Discounts are usually offered to collector car clubs or car aficionados with large collections.
- Go low! – Classic car insurance premiums are typically lower than traditional ones and have better or full coverage policies for less.
- Low or Zero – Antique car insurance deductibles are much lower than those found with traditional car insurance policies and in some states there is no deductible.
- Familiar Surroundings – In the event of repairs, collector car insurance providers such as Hagerty allow car owners to use the auto shop of their choice.
There may be some stipulations to qualify such as the vehicle can’t be a daily driver, it can’t be raced or used off-road and it must be kept garaged. But collector car insurance isn’t just for cars. Trucks, tractors, scooters and even cars under restoration may be eligible for this special insurance.
The list below shows what else is typically covered or used to qualify:
- Cars or motorcycles considered antiques, classics or collectibles.
- Limited edition or anniversary edition cars.
- Exotic sports cars.
- Classic military vehicles such as World War II-era cars and trucks.
- Muscle cars and Hot Rods.
- High-quality replica cars.
What isn’t covered by collector car insurance varies by insurance provider but usually poor quality replicas, anything using Nitrous Oxide (Think Fast and the Furious) or vehicles with any other performance modification don’t qualify. Check with your insurance provider for more details on what can or can’t be covered.
And although this is a niche insurance industry there is more than one insurance provider that can satisfy your classic car insurance needs with companies like Hagerty Classic Insurance, American Collectors Insurance and Classic Collectors all vying for your business. So what are you waiting for? Give them a call and start protecting your classic with a classic car insurance policy!