The difference between a car you use for your everyday commute and an antique, classic or novelty car is important.

How do I insure an antique car?

June 14th, 2016 by

The difference between a car you use for your everyday commute and an antique, classic or novelty car is important.

The difference between a car you use for your everyday commute and an antique, classic or novelty car is important – and luckily something that many car insurance companies have experience dealing with. To protect your investment in a prized set of wheels, you need an insurance policy that matches the type of vehicle you own. When researching the right insurance, consider the following:

Traditional, antique or classic
First, you need to establish what category your car falls under. A "traditional" car is one that is bought either new or used and operated primarily as a mode of transportation. Essentially any car, regardless of age or mileage, can be considered a traditional car and these are insured under your standard car insurance policy.

A "classic" car is one that is at least 10 years old but holds a certain high value. This can be due to it being rare, customized or handcrafted, or having been owned by a famous or historical figure.

An "antique" car is distinguished by age and is usually 25 or more years old. 

Establishing value for an antique or classic car can be tricky. Unlike a traditional car insurance policy that uses Kelly Blue Book values, each unique antique or classic car must be appraised, and research must be conducted to definitively establish a unique and agreed upon value. Since these cars are often one of a kind or irreplaceable, this can lead to extremely high valuations – so long as the value is supported by documentation and research. 

Mileage can come into play with classic or antique cars – but not in the way you might think. While the number of miles already on the car may be of relatively minor consequence, the owner of a classic car may have to contend with a mileage cap. This is to ensure that the car is kept off the road as much as possible, and thus is kept safe. Extended mileage is always a possibility for those looking to drive their classic cars around, but this would be an extra cost added to your policy.

Roadside assistance and repairs
Specialty cars may require extra features added to policies, particularly when it comes to roadside assistance. Unlike traditional cars – where the goal is it to get the vehicle back on the road as soon as possible – classic and antique cars may need guaranteed flatbed trucks for hauling to avoid harming the exterior. Likewise, repairs on antique vehicles may need to go to a specialist who is familiar with the design and operational features. 

Storage and home policies
If your car is largely kept off the road or in storage, your policy may require verification that it is kept in a secure facility, safe from natural disasters and theft. If you primarily keep a car in your home, it may in fact fall under the umbrella of your home insurance policy – or at least require you to raise the total insured value of your home. 

Most policies for antique and classic cars require some level of customization based on how you intend on using the car, and thus may have specific restrictions that you should discuss with your broker. Ask:

  • Do you take your car to car shows often?
  • Have you made any modifications, like increased the horsepower of installed modern safety features?
  • How many passengers are you allowed to drive with and what kind of bodily injury coverage is required?

Fundy Mutual is always happy to work with car owners to help protect what they care about. Call us today to learn more.