Cooler temperatures are signaling a change in season from summer to winter. However, that doesn’t mean the end of driving your convertible across the Lake Austin 360 Pennybacker Bridge. In Texas, classic car enthusiasts do not go dormant and can be active year-round! Some folks might devote cooler months to making modifications on their primary collectible auto, or even searching for another vehicle to add to their collection, either way you should insure your investment.
Do I need to insure my classic car?
Yes. Traditional auto insurance may only cover your vehicle for depreciated or actual cash value (ACV). Depreciation represents the loss of value since you purchased the car. Several factors including mileage, wear and tear, and accident history are taken into consideration when estimating actual cash value. Because cars begin depreciating as soon as you drive your car off the lot the vehicle’s ACV may be only a few hundred dollars; even though your 1967 collector vehicle is in mint condition and worth $25,000 in today’s market.
What is the difference between auto insurance and classic car insurance?
Traditionally auto insurance is based on ACV or depreciation of a vehicle, thus the value is generally adjusted down based. With classic car insurance you can insure the vehicle stated amount or agreed value.
Agreed value is when you and your insurance company agree upon the value of your vehicle once you take out the policy. In the event of a covered loss, you will be reimbursed the lessor of the repair cost to fix the vehicle or the agreed value, regardless of any depreciation.
The stated amount of a classic car means there is a capped “stated” amount that will be paid based on the price of repairs at the time of loss. Stated amount option is a way to lower your premiums and give you some protection. In either scenario if the price of your classic vehicle goes up in value it is a good idea to let your insurance company know so they can increase your coverage.
Does it cost more to insure a classic car?
Since you use a classic car less than a commuting vehicle, the price of insuring a classic car is much lower. Generally classic car insurance policies have a limitation on annual mileage or provide a discount for low mile vehicles.
How many years do you need for classic car insurance?
The age of a classic car, in most cases is 25 years old but not more than 40 in age; at that point it is often classified as antique. The car being defined as a classic by the insurance company varies as there are now categories for hard-to-find cars labeled as “new classics” which may not have yet aged to traditional twenty-five years.
What Are Classic Car Insurance Requirements?
The criteria vary from one carrier to another that is why it is important to speak with your local independent insurance agent. For example, some insurance companies will need proof of a clean driving record for at least five years, where others allow for an occasionally oopsy in the driving history. Some have a minimum age limit for the main policyholder, require secure parking facility, or request confirmation the vehicle is well maintained. Your personal Britton and Britton Insurance agent will help you determine which company fits your unique needs and guide you through the underwriter’s conditions.
What is GAP insurance?
Gap insurance, also called loan/lease gap coverage, is an optional car insurance coverage that helps pay off your auto loan. This type of coverage is only available if you are the original loan or leaseholder on a brand new vehicle.
Get Classic Car Insurance today!
If you have a classic auto that you only use for pleasure drives, you can save money on your insurance! We are committed to helping our collectible and classic car clients get the coverage they want, no matter the season.
Request a no obligation free quote by completing the auto insurance form on our website. Please be sure to enter the value of your classic car and any special modifications in the remarks section.