American Classic Car Insurance

For people who own and drive a classic or collector car of any sort, American classic car insurance is something that really needs to be considered.  The insurance company that carries the policy on your “everyday drivers” may not be the best choice for your classic or collector car.



Most “normal” insurance companies will insure a collector vehicle just like a commuter vehicle, and charge the same rates.  The majority of collector vehicles are not used as “everyday drivers”, and don’t acquire nearly as many miles on them as everyday drivers do.  A normal policy that is designed for a commuter vehicle may not adequately cover the cost of repairs or replacement of an antique or collector vehicle, and the insurance company may be very hard to deal with in the event of a claim on an antique or collector vehicle.

An American classic car insurance company could save you hundreds of dollars each year, because they understand the limited use your collector vehicle gets and they adjust their rates for it.  Antique vehicle owners are generally very careful with their vehicles, don’t drive them in bad weather, and usually are older and more experienced behind the wheel.  They are much less likely to have an accident with their collector vehicle.  Collector car insurance companies recognize this and design their policies and set their rates with all those points in mind.  That being said, there are many factors that you need to be aware of when you are looking for collector car insurance.

The first thing to check on when you are looking at classic car insurance companies is their underwriter’s A.M. Best rating.  It needs to be an “A-” or higher.  If not, then keep looking!  You will find that the company you are talking to will not come up in the search, because they are the agency, not the underwriter.  Find out who their underwriter is, and that is the company you will look up.  Also, before you go too far with a particular collector car insurance company, make sure they are licensed to offer insurance in your state of residence.

The next thing that needs to be considered is whether the policy you are looking at is for Actual Cash Value, Stated Amount or Stated Value, or Agreed Value.

An Actual Cash Value policy will only pay the amount that the insurance adjuster and/or the insurance company thinks your vehicle is worth in the event of a loss, and will not pay extra for a specialty repair shop or for original repair parts.  This policy also assumes that your vehicle is depreciating as it ages.

A Stated Amount or Stated Value policy will pay either the amount specified in the policy OR the Actual Cash Value described above, WHICHEVER IS LESS!!!  In the event of repairable damage, the maximum repair cost is the Stated Value.  The Stated Value is only used in determining what your rate will be, and does NOT guarantee that the insurance company will pay that much in the event of a loss.

Agreed Value is the type you want to get for your American classic car insurance policy.  With Agreed Value, you and the insurance company agree on a value for your vehicle when the policy is written.  In the event of a total loss, the Agreed Value is the amount you will be paid.



Once you have made sure that the policy you are inquiring about is an Agreed Value policy, the next point to consider is how much to write the policy for.  Your collector vehicle should be insured for at least either a recent purchase price or current market value.  This amount should be reviewed every year at renewal time, and increased if necessary.

Some classic car insurance companies have an automatic adjustment built into their policies to account for inflation and appreciation.  This adjustment may be quarterly or yearly, and the amount will vary between insurance companies.  While this is definitely a desirable feature, it is still a good idea to review the policy amount every year to see if the automatic adjustment is enough to cover any increase in your classic car’s value.

How many miles do you put on your collector vehicle each year?  Many collector car insurance companies place limits on how many miles you can drive each year and still be eligible for their coverage.  Some just have one limit for all policies, while others will offer different policies for different levels of mileage, such as 1000, 3000, or 6000 miles per year.  If you drive your car a lot, there are some companies that have no limits on mileage at all.  Just make sure that the limit, if any, suits your usage of your collector vehicle.

Those are the biggest points to consider when looking for American classic car insurance.  I encourage you to shop around!  There are a number of companies that offer classic car insurance online.  Do some research using the points above, and find the one that suits your needs best.  Check with several different classic car insurance companies, get classic car insurance quotes from each and compare to what your regular insurance company would charge.  You likely will find that you can save money by using an American classic car insurance provider, and the coverage will be much better suited to your classic car’s usage.

Want to find out more?  For more detailed information on what to look for in a classic car insurance policy, go to classic car insurance quotes.  Then take a look at our directory of classic car insurance companies where you will find a number of different providers that specialize in American classic car insurance.


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