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.

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.