Understanding Insurance Options for Classic Vehicles

Understanding Insurance Options for Classic Vehicles

Posted by Anderson Restoration Parts on 16th Dec 2022

Car insurance is often very important for any vehicle owner, and those who own classic or vintage cars are no exception here. This is especially true due to the fact that classic cars often appreciate in value, compared to standard vehicles that typically depreciate with time - ensuring your vehicle is covered in case anything happens is therefore very important.

At Andersen Restoration Parts, we're happy to assist clients with a wide range of classic car needs, including every restoration part you might have a desire for - from ball joint sets and control arm sets to polyurethane kits and much more. We're also here to advise you on important areas like car insurance, including how certain restoration upgrades might impact your coverage in varying situations. Here's a general guide to obtaining the right insurance for your classic car: How insurance companies tend to define these vehicles, cars that won't be covered, and the specific kinds of coverage available to you depending on your needs.

How Insurance Companies Define "Classic" Cars

While this will vary slightly between specific insurance companies, there tend to be a few standard definitions applied to the realm of "classic" cars - with some specific sub-categories to consider:

  • Classic car: A classic automobile is generally considered to be one that's between 10-25 years old, and is rare or of historic interest. In addition, the car must have been restored, maintained or preserved in its original condition.
  • Antique car: An antique automobile is usually defined as being at least 25 years of age and having historic value - although some older cars may not meet the criteria if they haven't been restored.
  • Replica: Alternatively, replicas are cars that are modern reproductions of antique or classic cars, and they may be covered by different insurance policies.

Now, some insurance companies may have even more detailed criteria on what qualifies as a classic car - and some might also apply different terms to their policies, such as "collectible" instead of "classic."

Cars That Won't Be Covered

A wide variety of vehicles may fall under the above categories, including various car types - muscle cars, race cars, trucks, and so on. In most cases, even replicas will be covered in some way.

However, there are a few specific car types that will generally be off-limits for classic car insurance coverage. These typically speak to how the vehicle is used - classic car coverage requires "limited use" in most cases, so cars used for commercial tasks like taxi services or delivery work won't qualify. Additional exclusions may also apply if the car has been heavily modified from its original form, as this could affect its value and/or risk level for insurers.

For instance, most insurance companies won't insure a classic car if it's used for daily commuting or if it's used for racing. They also usually won't cover off-road or recreational vehicles, no matter how old they are, and commercial use vehicles tend to be excluded as well.

Available Types of Insurance Coverage

Finally, it's important to know what types of insurance are available for classic cars, and how they might differ from standard policies for modern vehicles. From a broad perspective, the basic types of insurance are similar or even identical to traditional vehicles:

  • Liability insurance: This covers damage that your car may cause to another vehicle or property, including medical expenses for the other driver. It also covers legal defenses and damages if you should be sued in the event of an accident.
  • Collision insurance: This type of policy covers damage to your own car, but only for accidents - it doesn't cover "acts of God" like hail or floods, and won't apply for theft or vandalism either.
  • Comprehensive coverage: This may also be referred to as "other than collision" coverage, and it covers all of the other risks not mentioned above - like theft, vandalism, fire, floods, and so on.
  • Uninsured motorist coverage: This is coverage that protects you and pays for your medical bills if you're in an accident caused by a driver without car insurance.

No matter what type of classic car (or replica) you own, it's important to understand the specifics of your policy and how it applies - this will help ensure that you get the coverage you need for any possible incidents or accidents on the road!

On top of standard coverage types, classic car insurance will often come with additional options that you can add depending on your needs. These will naturally add to your costs, but they are often vital for protecting your vehicle. Some examples:

  • Spare parts and tools coverage: If you're in the process of restoring one or more classic cars, this can help cover the costs of any necessary tools or parts needed to complete the task. It will cover in case of theft or damage, as well.
  • Cherished salvage coverage: In cases where the classic car is totaled by an issue that's covered by your insurance, this helps cover the costs associated with recovering any parts or salvageable items from the car.
  • Vehicle under construction coverage: Another option for car enthusiasts who are in the middle of restoring a vehicle, this covers any parts or tools that might be damaged while working on the restoration.
  • Disabled vehicle coverage: Finally, this helps cover the costs associated with transporting a broken-down classic car to be repaired. It's especially important if you're traveling long distances, as it can help prevent any major setbacks in your plans.

As you can see, there are a number of different types of protection available when it comes to classic car insurance. It's important to understand the specifics of your policy and how it applies - this will help ensure that you get the coverage you need for any possible incidents or accidents on the road!

For more here, or to learn about any of our classic car restoration parts or services, speak to our team at Andersen Restoration Parts today.