What is Collector Car Insurance?
Also known as Classic Car Insurance, this type of insurance policy covers vehicles that are considered fun-to-drive classics, such as older models of the Ford Mustang, Chevy Corvette, or Volkswagen Beetle. A classic is considered a vehicle that maintains or appreciates in value due to collector demand or as pleasure vehicles. A more specific definition is a vehicle that is 10 to 24 years old and has historic interest, or an antique, which is a vehicle 25 years or older also with historic interest.
Who is This Insurance For?
Anyone who owns a classic vehicle but doesn’t use it as his or her primary vehicle should look into this kind of insurance. This insurance typically requires that the car be parked in a garage and kept in good working order. These restrictions allow for lower premiums and lower policy costs.
How Does This Insurance Work?
Classic car insurance policies can cost up to forty percent less than standard auto coverage. Because this insurance is meant for pleasure vehicles that aren’t driven everyday, you get similar coverage at a much lower cost. Classic car policies also are different than most standard auto policies in that you have an agreed-upon amount for a full payout in a total covered loss. That way, you protect your investment in your classic car in case of a major accident.
What Are the Different Types of Collector Car Insurance Coverage?
Beyond the agreed-upon policy amount, classic car insurance policies can also include coverages that you see in standard auto policies. These include liability, collision, medical payments, and comprehensive coverage.
What Are the Major Benefits of This Insurance Coverage?
The major difference of a classic car or antique car insurance policy is the agreed-upon payout amount. These classic and antique car insurance policies help to preserve the historical value of your classic vehicle in a way that ordinary vehicles are not. Despite the garaging, restoration, and preservation restrictions needed for these types of policies, they are well worth the savings and peace of mind for protecting the value of your vehicle.