Classic Car Financing & Loans

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.