Classic Car Insurance: Protecting Your Cherished Collection

​For car enthusiasts with a passion for classic and antique automobiles, the importance of adequate insurance cannot be overstated. Standard auto insurance policies often fall short when it comes to providing comprehensive coverage for these cherished vehicles. This article explores the world of classic car insurance, highlighting the key distinctions and advantages it offers over traditional auto insurance.

What Is Classic Car Insurance All About?
Classic car insurance is tailor-made for collectors who have a deep appreciation for vintage and rare vehicles. Unlike regular auto insurance, it offers specialized coverage that is better suited to the unique needs of classic car owners.

Cost Savings: One of the primary benefits of classic car insurance is cost savings. Premiums for traditional auto insurance policies can be considerably higher due to the increased frequency of driving, which inherently carries a higher risk of accidents. Classic car owners, on the other hand, typically drive their vehicles less frequently, resulting in lower premiums. Additionally, the reduced risk of accidents and claims means that classic car insurance can be as much as 40 percent less expensive than standard auto insurance policies.

Classic or Traditional Car Insurance?
Classic car insurance and regular auto insurance differ in several critical aspects, making classic car insurance the preferred choice for vintage car collectors:

1. Eligible Vehicles: Classic car insurance is specifically designed for vehicles that are at least 25 years old and are considered collectibles. This is in stark contrast to standard auto insurance, which primarily covers newer vehicles that typically depreciate over time and older daily drivers.
   
   
2. Agreed-upon Value: In classic car insurance, the policyholder and the insurer agree upon a value for the vehicle at the start of the policy period. This value reflects the worth of the collectible car and is agreed upon before any claim is filed. In contrast, standard auto insurance determines the value of a total loss payment only after an accident, which can often lead to disputes.
   
   
3. Car Value Limit: Classic car insurance allows for the agreed-upon vehicle value to be significantly higher than the original purchase price. This is especially valuable for collectible cars that may have undergone restorations or upgrades, increasing their worth. Additionally, the agreed-upon value may be reassessed over time to account for appreciation. On the other hand, standard auto insurance calculates value based on the current prices of similar cars, taking into account factors such as mileage, condition, and improvements.
   
   
4. Driving Frequency: Classic car insurance policies typically require policyholders to provide evidence of another vehicle insured under a personal auto insurance policy. While classic cars can be driven on special occasions, there is often a mileage limit to discourage daily commuting. In contrast, standard auto insurance policies may cover automobiles older than 25 years, even if they are used for daily driving.

The Bottom Line
In essence, classic car insurance is designed to cater to the unique needs of collectors and enthusiasts who own vintage and collector automobiles. While standard auto insurance is geared towards "daily drivers" that are used more frequently, classic car insurance acknowledges the reduced driving frequency of collector vehicles, resulting in lower premiums. Additionally, the specialized coverage and agreed-upon values offered by classic car insurance make it the ideal choice for those who want to protect and preserve their prized automotive possessions.

​At Appletree Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (603) 881-9900 or CLICK HERE ​to request a free quote. 

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.