Insurance Qualifications for Classic and Antique Cars

Collecting Antique or Vintage Cars is a passion for some car enthusiasts. Further, these cars command a premium when sold on International markets.

Classic Cars must be insured for protection against damage. However, typical automobile insurance policies are not suitable for reasons mentioned below, and you must subscribe to a specialized Collectible Auto Insurance Policy (‘Collectible Policy’).

• Rare and unique parts: When rare and unique parts must be replaced, typical auto policies do not pay for the exact match, while a Collectible Policy does.
• Accidents: When the car is involved in an accident, typical auto policies pay for claims as per their own estimates, while a Collectible Policy settles claims as per the ‘Agreed Value’.
• Car Shows: When the car is displayed at car shows, either at home or abroad, typical auto policies do not cover accidental damage or theft, whereas collectible policies do.

Typical auto policies are straightforward and simple to comprehend. In contrast, a specialized Collectible Auto Insurance Policy is complex and involves several parameters.

Eligible Types

• Antiques: 25 years or older; car parts and accessories that closely match equipment available,from the manufacturer;includes Muscle Cars which are 2-door, high performance cars that run on V-8 engines.
• Modern Classics: 15 to 24 years old; car parts and accessories that closely match equipment available from the manufacturer, typically 2-door vehicles.
• Exotics: Less than 15 years old, car parts and accessories are rare or limited in production, typically 2-seat cars.
• Street Rods &Modifieds: 20 years or older, car parts and accessories have been altered to a large extent.
• Special Interest: Trucks, jeeps, military vehicles and special purpose vehicles that are 25 years or older.

Vehicle Valuation

More than USD 5000 for vehicles that are not modified, and over USD 10000 for exotic and modified vehicles.

Usage Restrictions

The insured vehicle cannot be used for regular driving; commercial or business use, and participation in track events. The vehicle must be used occasionally, for leisure or display at car shows, and must not exceed 5000 miles in a year.

Age Restrictions

In spite of the above definitions for eligible types, some states have their own age restrictions for a car to be eligible for Classic or Collectible Policies. For example, Massachusetts specifies a minimum age of 25 years to qualify a car as Classic or Vintage, while in most states, it is 15 years.

Driver Restrictions

Insurance companies insist that the declared driver for the insured vehicle has an impeccable driving record, and experience in driving these classics.

Storage Restrictions

The car must be stored in a covered, designated and secure car park. Some insurance companies expect the car to be parked in specialized storage facilities designed for such cars.

Agreed Value

The Insurance Company will evaluate your Classic car in line with its current market value, and present condition. In case of damages or theft, the entire amount of the ‘Agreed Value’, is paid to you barring the deductible. Your Policy will also factor the possibility that the classic car may have appreciated over time. You can engage an independent evaluator to evaluate your ‘Classic Car’, at regular intervals of time.

The Classic and Vintage Car show events take place throughout the year, but with the onset of summer, many states in the United States of America, will be hosting antique car events. It is time to check the insurance on your prized possession. 

Your classic car is more than a collector’s item. You have invested significant amount of time, energy and expense on it. Ensure adequate protection for your investment by subscribing to a specialized Collectible Auto Insurance Policy.

Seek the assistance of an Insurance Company who will guide you through various terms, conditions, or qualification parameters, and help choose the right Collectible Auto Insurance Policy for you.