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What is Classic Car Insurance, and How Does it Work?

If you own a classic car, you should definitely look into a classic car insurance policy to ensure this one-of-a-kind vehicle has the coverage it needs! What exactly is classic car insurance, and why is it a must for classic car owners?

What is Classic Car Insurance

Classic car insurance is different from typical car insurance policies because you agree upon the vehicle’s value as part of the sign-up process. That way, if something were to happen to your vehicle, you’d already know the payout you are expected to receive. 

In traditional policies, the payout is simply based on the market value of similar cars for sale. However, crashing a rare vehicle at least 25 years old is a lot different from crashing a 2016 Toyota Corolla. It simply wouldn’t be fair to attempt to offer a reasonable payout with rare, older cars when there aren’t always great examples to go by.  

Can I Use Regular Insurance for My Classic Car?

You may be able to purchase regular insurance for your classic car, but you should be aware that it may not offer you complete coverage—standard car policies factor in mileage, age and depreciation. Thus, your payout may be much smaller than anticipated (even if you’ve put in time and money to restore your vehicle). 

Using regular insurance is particularly risky if you’re committed to keeping your car as authentic as possible. With a classic car insurance policy, you can ensure your damaged genuine parts are replaced with new genuine parts. The same isn’t always true for classic cars covered with standard insurance policies. 

Are There Any Disadvantages of Classic Car Insurance?

This isn’t so much a drawback as it is something to be aware of when choosing your classic car insurance policy. Most classic car policies aren’t designed to cover daily driver cars. Instead, the policies cover limited use cars for trips, parades or exhibitions. If you are looking for added protection when you take your prized classic car out on the open road, classic car insurance is sure to offer it!

Choose the Right Classic Car Insurance for You at Freedom Insurance

We offer comprehensive, customized coverage from numerous major insurance carriers and make it easier than ever to find affordable policies that are exactly what you need. We have been serving clients throughout the greater Howard County and Carroll County areas since 1979, and we look forward to helping you and your family thrive. Get in touch today by calling (410) 795-2000 or requesting a free quote.