Classic Car Insurance Is Less Expensive Than Standared Auto Insurance, If You And Your Car Qualify!

So what's the deal? What are in in's and out of classic car insurance. What do I need to know?

Classic car insurance insures your investment that car buffs have made in their jazzy vehicles. The owners of collector vehicles often assume - incorrectly - that the only insurance option for their classic auto is to put it on their family auto policy. Wrong.

Standard auto insurance is usually more expensive than the classic car insurance, but those companies have some criteria that must be met in order to qualify for their programs in order to get those good rates. So lets look at a few of the main restrictions that face the classic car owner.

Classic car insurance companies will want to know before you can get that good rate for your auto insurance coverage the following: the age of the driver - many companies have a driver's age restriction, the mileage on your car may not qualify for the mileage limitations, the housing or the garaging requirements and then there are your vehicle age qualifications.

Classic car insurance policy can vary greatly in coverage from the standard auto insurance policy. Most standard auto insurance policies insure the vehicle for its current value, minus depreciation. In other words this means that as the age and usage of the car increases, the value decreases. Not with the classic vintage auto. In contrast, collector vehicles, if well-maintained, will increase in value over time. This is because they are not driven as often, they are not used for the same reasons as a car that is driven for everyday use, and their owners truly baby them.

In order to provide appropriate coverage for this situation, classic car insurance providers typically offer "Agreed Value Coverage", which essentially means that the you the insured and the classic car insurance insurer will agree upon the value of the vehicle up front. This vehicle valuation will offer the full market value for the classic car as stated on the policy and factor in appreciation to the value at the time of a loss.

There are some carriers that will also offer low or no deductibles for comprehensive and collision coverage. Often times they will provide coverage for spare parts or accessories that are not on or in the your vintage vehicle. You won't find that kind of coverage on your family auto insurance policy.