Classic Car Insurance: What You Need to Know

by | Dec 28, 2021 | Auto

Buying insurance for your classic car, or collectible, is not the same as buying insurance for the car you drive every day to work. Classic car insurance protects your vehicle through collision, comprehensive, liability, and other specialized coverages.

In most cases, a car is often considered a classic when it is at least twenty years old but not more than forty years old. It must be kept to its original design and specifications if you are planning to register and insure it as a classic. Different states have different guidelines and regulations as to what qualifies as a classic car, but insurers still have their own rules for accepting it into their insurance program.

Classic Car Insurance Agency Coverage Options

Liability coverage

This coverage pays for property damage and/or injuries to another person involved in a car accident where you are at fault.

Uninsured and underinsured motorist coverage

If you are injured in a car accident by an uninsured driver, then uninsured motorist coverage will help to pay for your expenses. Underinsured motorist coverage will help to pay for your vehicle’s damage or your injuries if you are in a car accident with a driver whose insurance policy limits coverage.

Personal injury protection

Also known as PIP, this coverage helps to pay for medical expenses caused by a car accident whether you were at fault or not. It can also be extended to certain family members that may live in your home.

Medical payments coverage

Also known as med pay, this coverage helps to pay medical bills resulting from a car accident. This coverage can be used whether you are at fault or not.

When it comes to collision and comprehensive coverage, the car insurance agency steers in a different direction because the coverage is for the damage done to your own classic vehicle.

Since this is normally based on the vehicle’s agreed-upon value by you and the insurer, you will want to put a dollar amount value on the policy that you wish to be paid in full if the vehicle is a total loss, minus any deductibles.

Collision & Comprehensive Coverage

Collision coverage

This coverage pays for damages if your classic car hits an object such as a telephone pole or another car.

Comprehensive coverage

This coverage pays for damages due to weather, explosion, floods, fire, and other problems. In addition, it will cover theft of the car and/or damage from hitting a deer or other animals.

Since many classic cars grow in value over time, the standard policy which reflects the actual cash value of a vehicle, would not be the correct type of coverage.

Instead, you and your insurer will agree upon a specific value for your classic car coverage based on certain factors such as current market value, condition of the car, replacement cost, and cost of special parts.

Premiums for classic cars are often lower than that of regular car insurance because most people will drive their classic car less. But you will still need to qualify for classic car coverage.

Factors That Can Affect Classic Car Insurance Coverage

How much it is driven

A classic car insurance policy may limit the number of miles you can drive annually which means you cannot use your car to commute to work or run errands.

Where it is stored

It is likely that you will need to store your classic car in a locked enclosed private structure such as your home garage or a storage unit. Although, some insurers may let you park your classic car under a carport, driveway, or possibly in a parking garage.

Driving record

If you have multiple speeding tickets, a DUI conviction, or other serious driving offenses, it is likely that you will not be able to purchase classic car insurance.

Condition of the car

If your classic car is in bad shape, you may not get approved for classic car insurance.

If you own a classic car and are looking to acquire an insurance policy on your collector, contact Thomson Smith & Leach Insurance Group today at one of our three Louisiana-based locations: Lafayette, Franklin, or Abbeville. Our knowledgeable insurance agents can help you with all your classic car coverage needs.

TSL will do right by you which makes us the best top-notch car insurance agency in Louisiana to work with. Don’t delay and contact us today.