How Much Insurance Should I Carry on an Antique Car?
An antique car in driveable condition is a treasure. Protect your car by evaluating insurance policies. A basic auto policy may not be the right choice for your needs. Explore policy and provider options for the best rates. Select a policy based upon the services you need. Basic auto insurance assumes regular use of your car. Antique car owners may choose to drive only occasionally on sunny days.
Other People Are Reading
-
Specialty Insurance Vs. Standard Auto Coverage
-
Specialty car insurance may offer better terms for an antique car owner. Standard auto insurers seldom provide benefits offered by collector auto policies. Standard auto insurance may cost more. The insurer is likely to require additional liability insurance because of the car's age and value. Specialty insurers acknowledge that most antique car owners drive their cars only on occasion. For that reason, liability costs are usually much lower than a standard auto policy. Owners of collector cars have special needs, according to Michael Barry of the Insurance Information Institute.
Mileage
-
Most collector car owners choose to insure their cars through a standard insurer. Adding a policy or an attachment to an existing policy may be easier and more costly in the long run. Driving an antique car only on Sundays during the month of June usually adds less than 1,000 miles to the car. Collector policies are almost always less expensive than daily-use car insurance policies, according to "Insurance For Dummies," by Jack Hungelman.
-
Considerations
-
Classic car insurers, such as OneBeacon Insurance, do not require higher coverage than the minimums established in the owner's state. Most classic car insurer programs can't offer coverage limits that are higher than those on cars used every day. The premium for a classic car insurance program is calculated based on the vehicle's market value, as calculated by recent invoice or market comparison. The car's original stock condition or any modifications made through the years also affect its value. Original stock condition is preferred in an antique vehicle.
Insuring an antique car usually requires the owner to have a daily-use vehicle. The daily-use vehicle is usually insured by another insurance company.
In general, antique car policies cost less than insurance coverage on a new car. Antique car owners should obtain several insurance quotes from specialty programs before making a decision.
Types
-
Choose from several types of antique car insurance policies. Actual cash value underwriting assumes depreciation from the car's book value when a claim is presented to the insurance company. Antique cars in driveable condition may appreciate over time. Agreed-upon value policies provide a guarantee of your car's value if it's totalled, destroyed or stolen. Depreciation doesn't factor into this policy type. The agreed-upon value doesn't automatically adjust upwards when the car appreciates in market value. Make any adjustments to the car's value when renewing the policy.
Restrictions
-
All antique auto policies provide restrictions. In exchange for lower insurance premiums, antique car owners may agree to drive their cars 5,000 miles or less per year. Most specialty insurers prohibit the use of the car for commerce or transporting passengers.
-
References
Resources
- Photo Credit antique car image by Goran Bogicevic from Fotolia.com
