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Classic Car Insurance

It’s finally parked in your garage and you can’t believe it. Now comes the fun of 
owning and driving it. 

Depending on usage, there are several options for classic car insurance. 
Although getting the right insurance is not complicated, there are some things 
that are not obvious. 

Many owners make the mistake of calling their current insurance agent and just 
writing another policy. Seems reasonable enough and hassle free; just roll it 
under your other auto insurance. It’s estimated that the majority of vintage classic 
cars are in fact insured this way. Owners are paying higher premiums and getting 
less coverage. 

The danger is that the policy your agent gave you is probably the same as your 
current vehicle? Even you’re your current vehicle is a “high dollar” car, is it 
appreciating in value? If you own your current car for 3-4 years and need to 
collect insurance in a total loss, the payout will be based on the depreciating car 
value. 

On the other hand, if you have a beautiful 1967 GTO staring at you from your 
driveway, do you think it will be worth more or less three years from now? Hint – 
probably a lot more! 

Standard insurance plans do not work 

Classic car insurance has been available for years. You need to check with your 
provider, but usually there are some minimal driving restrictions relative to 
mileage, say less than 5000 miles per year. Many will require that you have a 
“day-to-day” car already registered so the classic will not be used for routine 
transportation. 

Know the various policies. 

There are three types of policies for classic cars 

1. Stated Value – This type of policy lets you declare the value of the car that 
is greater than its depreciated book value. This is better than a standard 
policy, but will only pay up to the stated amount and does not factor in 
appreciation. 

2. Actual Cash Value – This is more like a standard policy where the value is 
determined on some kind of depreciated value. With this policy, the 
insurance adjuster decides what your car is worth. Hopefully they are 
having a nice day!

3. Agreed Value – This is where you and the insurance company agree on 
the value of the car. There is no depreciation. In addition, the agreed upon 
value can be modified during the life of the policy to reflect increases in 
value. This way, you are 100% protected that you will receive the full value 
for your car. 

Other considerations 

• Many classic car insurance policies have minimum age restrictions, 25 to 
sometimes 30 years old. Younger drivers are not permitted. 
• Not all classic car agents are created equally. Make sure you check out 
their customer service and feel confident that they know replacing a 
windshield on a 1967 GTO will probably be more expensive than your 
everyday car. 
• Make sure your carrier is licensed in your state. 

We hope you enjoyed this article! 

Cheers 
Tim Leary 
Elon Block 
www.yourdreamcarfinder.com 
www.classiccarbuzz.blogspot.com