Classic Car Financing & Loans

Specialty insurance from a classic car insurance company offers a number of benefits for those who own and drive antique or collector cars.  Companies that specialize in antique car insurance can offer better coverage with lower premiums than a standard auto insurance company can, but the better coverage and lower premiums come with some restrictions.  There are a lot of points to consider when choosing a classic auto insurance provider and policy, so it is important that you do your homework in order to find the antique auto insurance provider that is the best fit for you.

 
Grundy Worldwide is one insurance company that specializes in collector car insurance.  They have been in business since 1947 in Horsham, PA just north of Philadelphia.  Since their beginning, Grundy Classic Car Insurance has covered over 1.5 million collector vehicles, and they are one of the fastest growing classic car insurance companies.  The owner is a car collector and restorer himself, having won awards at several of the major collector car events in the US.  His involvement in the hobby helps him to understand the wants and needs of other car collectors.

Grundy Classic Car Insurance is the originator of the Agreed Value policy, in which the insurance company and the car owner set an agreed value on the vehicle before the policy is initiated.  If there is a total loss, the car owner receives the full value of the car, instead of what the insurance company decides the car was worth after the fact.  Grundy will insure any year vehicle, even late model cars as long as they are used for show, hobby and pleasure purposes only.  Many other collector auto insurance companies will only write policies for vehicles of a certain age or older.

Grundy only uses underwriters with an A.M. Best rating of A+ or higher, which means the companies are very stable financially.  They offer liability up to one million dollars, and have a single liability charge for collectors with more than one vehicle, which lowers the total premium.  Grundy’s antique auto insurance policies have a number of built-in coverage perks, which include towing and labor expenses, car show medical reimbursement, automatic 30-day coverage for new acquisitions, and coverage for the loss of spare parts.  They even have “Trip Interruption” coverage for costs incurred from a breakdown on the way to a show (such as transportation, lodging, and meal expenses).  One feature that Grundy provides that many others do not is their “Inflation Guard”, which automatically increases the amount your vehicle is inured for by 4% each year to help cover inflation.

Like any other vintage car insurance provider, Grundy has some restrictions.  Your car must be stored inside a locked garage when not in use; you must have a daily driver for each licensed driver in your household in addition to the classic vehicle; and the car must be in excellent condition.  The vehicle should only be used for collector activities, exhibits and parades, but one feature that sets Grundy apart from many other classic antique auto insurance providers is that they do not have a mileage limitation.  Many other antique classic car insurance companies have limits ranging from 1,000 miles up to 6,000 miles per year, but with Grundy Classic Car Insurance you can drive the car to as many distant car shows as you like without worrying about exceeding a yearly mileage limit.

Grundy also offers specialty insurance for restoration shops and professional car builders.  It provides Agreed Value coverage for the Garagekeepers portion of the policy, instead of the Actual Cash Value coverage that other insurance providers offer.  Since they don’t offer this policy to mainstream collision repair shops, the premiums are lower than they would be for the often inadequate protection a specialty shop gets from a standard insurance provider.

Grundy Classic Car insurance has a lot to offer for the car collector.  Whether you need muscle car insurance, antique car insurance, or collector car insurance for a late model specialty car, Grundy can provide an Agreed Value policy that will most likely suit your needs.  However, they are just one of many different classic auto insurance providers out there.  Do some research on several different specialty insurance providers to find the one that is right for you.

To learn more about classic car insurance, visit American Classic Car Insurance. For directory of the most popular specialty car insurance providers, go to Classic Car Insurance Companies.

People who own and drive collector cars have different needs for their collector car insurance than they have for their cars that are driven every day.  A collectible car is by definition “special”, and so it has special considerations to take into account when it comes to insurance.  Your everyday insurance provider that insures the vehicle you drive to work is accustomed to dealing with claims on modern cars that depreciate in value as they age, and the average owner doesn’t notice the difference between a $2000 paint job and a $10,000 paint job.  A company that specializes in collector auto insurance has several key benefits to offer the collectible car owner.

Benefit # 1:  Lower Premiums – A collector car is normally only driven on a limited basis, stored indoors, not driven in bad weather, and generally leads a “babied” life.  Most classic car insurance companies are also somewhat selective in who they will insure.  These two factors allow the classic car insurance company to charge much lower premiums than conventional insurance companies, because they know that the collector’s car is less likely to be in an accident.

Benefit # 2:  Agreed Value Coverage – Most classic car insurance companies offer an Agreed Value policy, which means that you come to an agreement with the insurance company on what your vehicle is worth before the policy is written.  If you have a total loss accident or theft, an Agreed Value policy will reimburse the total amount that was agreed upon when the policy was initiated.  Very few conventional insurance companies offer a true “Agreed Value” policy.  They offer a “Stated Value” or “Stated Amount” policy has a clause that allows them to only pay what they “think” the car was worth, and it makes the assumption that your collector car is depreciating like a typical used car!

Benefit # 3:  They Understand Your Needs – Specialty collector car insurance companies understand your needs better than a typical insurance provider does because in many cases the insurance agents and possibly even the owners of the company are car enthusiasts or collectors themselves.  They realize how much your collector car means to you, and they understand the importance of the car being repaired correctly so that it retains its value.  When presented with a claim they will give you much less argument and more leeway to get your car repaired the right way the first time.

Benefit # 4:  Repair Shop Of Choice – Many everyday insurance companies will only pay a set rate for collision repair at a high-volume body shop that does average-quality work on modern cars.  If you take your car to a shop that specializes in restoration work, you may be left footing the bill for the difference in cost.  Many antique car insurance companies will allow you to take your car to a specialty repair shop, and they will pay what it costs to have the car repaired the right way by a craftsman that is skilled in restoration work.

Benefit # 5:  OE Parts – On a similar note, many everyday insurance companies will only pay for less expensive aftermarket repair parts.  Using non-original parts can reduce the value of your vintage car considerably, as they may not fit as well as original equipment parts and an all-original car is always worth more.  Many specialty insurance providers allow for the higher cost of using original equipment parts.

Benefit # 6:  Perks and Special Situations – Some collector car insurance companies offer many other types of benefits, such as coverage for spare parts, memorabilia, tools, car trailers, coverage for overseas transport, etc.  Some even offer medical coverage for personal injuries that occur at car shows, and “event disruption” insurance that reimburse car show entry fees and non-refundable hotel deposits if you miss an event due to a mechanical breakdown on the way there!

All in all, specialty collector car insurance companies have a lot of advantages for the classic car owner.  If you own and drive a collector vehicle, you will find that an everyday insurance policy from an everyday insurance company is severely lacking in comparison.

Classic car insurance from a specialty insurance company has a lot of advantages for those of us who own and drive a muscle car, antique car, or other collectible or special interest vehicle.  These policies offer much better coverage for less money than a standard auto insurance policy.  There is a lot to consider, though, when comparing classic car insurance companies.  Each company has its own advantages and disadvantages, and it is important that you find the insurance company that offers the best fit for your situation.

Hagerty Classic Car Insurance has been offering specialty collector car insurance since 1991, and is one of the largest and most well-known classic car insurance companies.  They are car collectors themselves, so they understand the insurance needs of other classic car owners.  Their policies offer:

- Agreed Value coverage – you receive the full insured amount in the event of a total loss
- A wide range of deductibles, from $0 and up
- Single liability charge, which saves you money on the premium if you have more than one classic vehicle insured
- In-house claims management – most claims are handled at Hagerty by a collector car insurance expert, seven days a week from April through October
- Repair shop of your choice – you get to choose the shop you want to handle any repairs
- Instant new purchase coverage – a new addition to your collection is automatically covered up to $50,000
- Car show medical reimbursement – clients and their family members get pre-determined medical coverage if they are injured at a car show

Hagerty Classic Car Insurance also offers special policies for coverage during an active restoration, for business-use endorsement, coverage during overseas shipping, and foreign liability and property damage if you take your car to an event overseas.  You can get additional coverage for your automotive tools and memorabilia, spare parts, and even motorcycle safety equipment coverage.  Hagerty also has a car club liability program.

The optional Hagerty Plus program offers even more benefits for its members, including emergency roadside assistance and flatbed towing coverage, a subscription to the Hagerty magazine, and access to the “Ask Hagerty” concierge service.  They are active in advocacy on legislative issues related to the collector car hobby, and a portion of the membership fees go to support The Collectors Foundation, which provides scholarships and grants to organizations working to preserve the hobby through education and other avenues.

Hagerty Classic Car Insurance does have some restrictions, though, on who and what qualifies for their insurance.  Drivers with more than one or two minor traffic violations or accidents in the past 3-6 years may not qualify.  The vehicle must be used on a limited basis, going to automotive-related events or an occasional pleasure drive.  If you drive your classic car very often or very far, you might be better off considering a different classic car company that doesn’t place limits on how much you drive your car.  Like most other classic car insurance companies, your vehicle must be stored in a fully enclosed and locked garage when not in use.  And like most other companies, you must have a “daily driver” that is insured in your name in addition to your classic car.

Insurance policies are available for most antique and classic cars, street rods, muscle cars, military vehicles, antique fire trucks, tractors, motorcycles, and some replica cars.  However, Hagerty does not offer insurance for Cobra replicas, off-road vehicles, many Pro-Street cars, any vehicle equipped with nitrous, dune buggies, commercial vehicles, or motorcycles that are modified for performance.  They do offer policies for some of the “late model classics”, exotic, special interest, or limited production vehicles, as long as they are being treated as a collectible and are driven on a limited basis.

Hagerty Classic Car Insurance is a great option as long as you and your vehicle meet their qualifications and you don’t drive your car extended distances each year.  I will soon be adding articles on other classic car insurance companies, with different qualifications and restrictions.  Take a look at my other articles, and make sure that you choose the classic car insurance company that fits your needs the best.

For more detailed information on what to look for in a classic car insurance policy, visit American Classic Car Insurance. For a directory of the top classic car insurance companies, go to Classic Car Insurance Companies.

Prior to the 1980s, most domestic cars and light trucks had transmissions with a 1:1 ratio in high gear, which means that the car’s driveshaft will turn the same speed as the engine.  This 1:1 ratio served us well for fifty years or more.  As oil prices rose and the country as a whole became increasingly concerned about the amount of air pollution coming from our vehicles, automakers began to look towards overdrive transmissions as part of the solution.

With an overdrive transmission, the top gear is less than a 1:1 ratio, which means that the driveshaft will turn at a faster speed than the engine.  For example, if you have a car without overdrive and a 1:1 top gear ratio, a 3.08 axle ratio, and a 26″ tall tire, your engine speed at 70 MPH is about 2750 RPM.  The typical overdrive in a domestic car is about a 0.70:1 ratio, which means that in top gear the driveshaft will turn 42.9% faster than engine speed (1 divided by 0.70 = 1.42).  In the same car with an overdrive transmission and a 0.70:1 top gear ratio, engine speed at 70 MPH is reduced to 1925 RPM!

This reduction in engine speed has several benefits:

1.)  Lower fuel consumption – on the highway, your engine will use roughly one-third less fuel.

2.)  Lower emissions – on the highway, your engine will emit roughly one-third less pollution.

3.)  Longer engine life – all other things being equal, your engine theoretically has a life that consists of a certain number of revolutions.  You are going the same distance as before, but using fewer of those revolutions to get there.

4.)  Longer accessory life – your water pump, alternator, power steering pump, A/C compressor, and smog pump (if equipped) are all turning at a lower RPM and should last longer.

5)  Less cabin noise – an engine turning at a lower RPM will be quieter, making the trip less stressful.  It is easier to have a conversation, and you can actually hear the radio!

There are a few minor trade-offs, though.  The engine will have less power for passing and going up hills when the transmission is in high gear, so downshifting will be necessary at times.  Most overdrive transmissions are slightly heavier than their non-overdrive counterparts, too, but this difference is negligible in most cases.

All in all, overdrive transmissions have been one of the biggest improvements to be made to domestic cars in the last thirty years.  They have made a larger difference in highway fuel economy than fuel injection and computerized engine controls.  There are a number of companies such as Keisler Engineering that have made a good business out of providing overdrives to retrofit into classic musclecars and street rods!  Given the benefits of overdrive transmissions, my biggest question is why the automakers didn’t offer them sooner!

Most conventional lenders are reluctant to make an antique car loan, even though buying an antique or collector car is a smarter financial decision than buying a new car.  The biggest reason many lenders do not offer collector car financing is that a collector car is very difficult to place an accurate and reliable value on.  With a new car or one that is less than 20 years old, it is much easier to nail down an accurate market value.  With an antique or collector car, there are way too many variables for many lenders to deal with.

For instance, is the car all original or has it been restored?  If it has been restored, what is the quality of the restoration like?  Is it unique or rare in any way?  Is it a popular car with a wide fan base such as a first generation Camaro, early Mustang, or Mopar E-Body, or is it a more obscure (but rare) model that would only be worth a considerable amount of money to a relatively small group of collectors?  Has it been modified, and if so, how do the modifications affect the value of the car?  Is it really a Chevelle Super Sport, or a mundane Malibu that someone has swapped engines in and added emblems to?  Did the car once belong to a celebrity, or is it a vintage race car that won some famous races?  These kinds of questions will make a normal loan officer’s head spin, but all of these factors will come into play when you are applying for classic auto financing.

The bottom line for the classic car finance provider is, “If the borrower defaults on the loan, how easy will it be for us to sell the vehicle and get our money back for it?”  With a new (or late model used) car, there are enough “data points’ for a lender to get a relatively accurate and reliable picture of what they are up against if the borrower defaults on the loan.  With a 1957 Desoto Adventurer coupe, there aren’t a lot of data points to compare to.  Even for a more common classic car, such as the ubiquitous 1969 Camaro, the values vary so greatly due to the options, condition, and modifications that a typical lender just isn’t well-enough informed to make a good decision.  So they bump up the interest rates to cover their losses in case they overestimate the value of the car, or they just don’t offer collector car financing at all.

When looking for collector car financing or classic auto financing, it is best to seek out lenders that specialize in classic car finance, or at least have an antique car loan program.  These lenders will most likely be able to give you a better interest rate and/or a longer loan term than you will get with lenders who concentrate on newer car loans.  These lenders are familiar with the classic car market, and will understand why a 50 year old car could be worth $50,000 or even much more.

To learn more about collector car financing, go to Classic Car Financing. To get more information on the “nuts and bolts” of getting an antique car loan, take a look at Classic Car Loans.

There is no doubt about it, if you own and drive a classic muscle car, there are many advantages to getting your insurance from a specialty insurance provider.  They can offer you much more appropriate coverage for less money than a standard insurance policy from the company that insures your everyday driver.  However, the way that the muscle car insurance companies are able to offer better coverage for less money is that they place a number of limitations or restrictions on the policyholder and how the car is used.  Some of these limitations may disqualify you from being able to get specialty insurance, or may be too restrictive for how your car is driven.

The first restrictions to consider are your age, driving experience, and driving record.  Most vintage car insurance companies require that you be of a certain age or have a certain number of years behind the wheel.  All of them that I have researched require a good driving record, and have a limit on the number of accidents or moving violations that you have had within a specified time frame.

The second restriction to consider is that most if not all specialty insurers require that you have a currently-insured daily driver vehicle in addition to your classic car.  Some companies require that you have a daily driver vehicle for each licensed driver in your household.  They will not offer a specialty insurance policy if your muscle car is your main mode of transportation.

The third restriction to be aware of is that many classic car insurance policies have limits on how many miles the car can be driven each year.  This may be a concern if you drive to a number of distant car shows or take it on vacation.  Most will not allow you to use your muscle car for your daily commute or for running errands, even if you meet the previous criteria of owning a daily driver.  If you drive your car quite a bit, there are muscle car insurance companies that offer unlimited mileage policies, but the number of providers you have to choose from will be limited.

Fourth, you will likely be required to store your muscle car in a fully enclosed, locked garage when not in use.  Some classic car insurance companies even require that you send them photos of the garage where the car is stored!  If your car is kept outside or even under a carport, you may have trouble getting a specialty insurance policy.

The fifth restriction you may run in to is that some collector auto insurance companies will only insure vehicles that are valued above a certain amount.  If your classic muscle car happens to be a rusty four door sedan, your number of choices for specialty insurance providers will be somewhat limited.

Each insurance company is somewhat unique in their limitations and restrictions, but the above points are common to most muscle car insurance companies.  As long as you can meet the qualifications above and can live with the mileage limits, a specialty muscle car insurance policy is most likely your best choice.  It will save you money and provide you better coverage than using a conventional auto insurance policy and provider.

Driveline vibrations can be tricky to diagnose, because you can’t get under the car and see what is going on while it is driving down the road at 60 MPH.  If you have read my Part One article, you have a pretty good way of narrowing down the list of possibilities based on if the vibration is engine speed related, vehicle speed related, or engine load related.  Here are some other considerations to keep in mind when diagnosing a classic car vibration.

The first thing to consider is the overall current situation.  If this is a new build that has never been run before, then everything is suspect.  You may have total faith in your engine builder, but could one of his tools be out of calibration?  Is the engine supposed to be externally balanced, and you ordered the correct flywheel but actually received one for an internally balanced engine?  Are your driveshaft angles out of spec?  Could you possibly have a defective pinion or axle bearing, a bent axle, a warped wheel, or a tire out of balance?  Is your exhaust touching the body or another component at any point?  Are all the suspension bolts, body to frame bolts, and steering linkage nuts/bolts tight?

If this is a modified car, there are so many more things to think about.  If you have 1968 Camaro (my favorite year!) with a Total Cost Involved front end, a late model LS3 engine with home-made engine mount towers, a Keisler transmission, a Currie 9″ rear end, and a Detroit Speed rear spring and shock package, there are a number of different opportunities for incompatibility, not to mention the fact that the car is almost 40 years old and the production tolerances back then were considerably “looser” than they are now.  Aftermarket companies usually design their parts to fit a completely stock car, and their parts will usually fit an otherwise unmodified car very well.  When you start to combine aftermarket parts from different manufacturers, you sometimes run into problems.  The aftermarket front end may be designed to improve cornering ability which changes some geometry that the aftermarket transmission system also changes due to tunnel interference with the transmission, and then the rear end company also takes a few liberties with their design to make the rear end fit several different cars, and the rear suspension company modifies the geometry for maximum traction when drag racing.  Each part by itself works perfectly with an otherwise stock car, but when all are combined you can end up with a car where the transmission touches the car body and the driveshaft angles are unacceptable.  This of course isn’t always the case, but if you run into a vibration problem on a heavily modified car you need to take this possibility into account.

If it is a recent restoration that was vibration-free before, then first look at anything that was changed, and the relationship all those components have with other systems on the car.  If you just swapped a Ford 9″ rearend into your Chevy, the rearend itself may be fine, but you could have altered the driveshaft angles.  An angle that was barely acceptable before might be slightly beyond the limit now, creating a vibration.

Sometimes you have to “think outside the box”.  I once corrected a “vibration” in a two year old, 25,000 mile Buick Lesabre that had a vibration complaint since day one.  It had been to three different dealerships, where they had rebalanced and replaced the tires and wheels several times, had multiple wheel alignments, and even had the shocks and struts replaced.  I noticed on a test drive that the vibration was only in the steering wheel.  I could not feel it in the seats, the armrests or the dash, or see it in the mirrors.  I took it back to the shop and ran over some speed bumps at about 10 MPH to see what happened, and the steering wheel moved about three inches up and down!  I was a service writer at the time, and all of the technicians refused to believe that the steering column could be loose from the factory, so none of them would work on it.  I dug into the dash and found that two of the four bolts that secure the steering column to the dash were about three turns shy of being even finger tight!  It had come that way from the factory, and none of the previous technicians had taken the time to pay attention to what was actually happening with the car.  I tightened the loose bolts, and I had a customer for life!  Sometimes you have to open your mind a little, and throw all assumptions out the window.

The bottom line is to take your time and consider all the possibilities.  Assess the overall situation, drive the car, and think about what is happening.  Don’t make any assumptions, and realize that aftermarket parts from different reputable companies aren’t always designed to work with each other.  Have an open mind, and with patience any vibration problem can be diagnosed and corrected.

There are a number of different possible causes for a driveline vibration.  Your wheels, tires, axles, driveshaft, transmission, clutch or torque converter and engine components are all rotating at a high rate of speed, and any one or more of these components can create a vibration if they are worn or out of spec.  Worn or broken engine or transmission mounts can transmit normal vibrations that usually aren’t ever felt, and accidental body contact with the engine, transmission, or exhaust can also be misinterpreted as a driveline vibration.  The first step in diagnosing a classic car vibration is to determine exactly when and under what conditions the vibration occurs.

There are three basic types of vibrations:

1. Engine RPM related – If the vibration is related to engine RPM, it will occur in all gears (and possibly even sitting still) at a particular engine RPM or above.  This vibration usually can be attributed to the engine itself or anything else that turns at the same speed as the engine, such as the harmonic balancer, flywheel or flexplate, pilot bearing, pressure plate, torque converter, or transmission input shaft.  It is also possible for body contact with the engine, transmission, or exhaust to cause an engine RPM related vibration.  Worn or broken engine or transmission mounts can contribute to this problem.  When driving the vehicle with the vibration present, maintain vehicle speed and try shifting to a lower or higher gear.  If the vibration changes or goes away while maintaining the same vehicle speed, then the problem is not related to engine RPM.

2. Vehicle Speed related – If the vibration is related to vehicle speed, it will not be present until you reach a certain speed, and then it will usually start gradually and then become worse as speed increases.  In some cases, it will decrease at some point, and then come back again at a higher speed.  This type of vibration could be related to your wheels, tires, axles, differential, driveshaft runout, balance, or angles, universal joints, or transmission output shaft.  Try the same driving test as above.  If the vibration is present in third gear at 50 mph, but shifting to fourth gear at 50 MPH makes the vibration go away, then it is not going to be vehicle speed related and you can usually rule out any rotating component that is further back than the transmission output shaft.  At a given MPH, your output shaft, driveshaft, axles, wheels and tires are all turning at a constant speed, no matter what gear the transmission is in.

3. Accel/Decel/Cruise related -  A vibration that changes depending on whether you are accelerating, decelerating, or cruising at a steady speed could have quite a few different causes.  Generally, this will be related to driveshaft angles or a worn or broken part, instead of something being out of balance.  Think about what changes when the engine is under load.  The engine and isolator mount loads shift; the load on the pinion bearing changes; your driveshaft angles change, possibly more than they should due to a broken engine or transmission mount; your exhaust, shifter, transmission, etc. could be contacting the body only on accel or decel; if the car has been lowered (or raised), your suspension snubbers could be contacting the body prematurely.

A vehicle works as a system, and you have to understand the relationships between all the different parts when you are trying to diagnose a driveline vibration.  Determining if the vibration is related to engine speed, vehicle speed, or engine load will help you narrow down the list of possible culprits, and keep you from wasting your time looking in the wrong places.