Classic cars are not only a hobby, but a lifestyle for many individuals. They capture the essence of an era - the vehicles that we have grown up with strike emotions and memories of old when we see them, hear them, and drive them. Many of these older vehicles have had restoration & refurbishment done to them to bring them back to their former glory. And along the way there have probably been some modifications and upgraded parts added to really give them character.
The problem is that most of your typical automobile policies might not cover the vehicle's true value. Most automobile insurance policies you purchase have actual cash valuation on them. Modern vehicles we drive regularly depreciate day after day. But your classic car might be a collector item and have substantial value. It might actually appreciate in cost! And it probably isn't used as a daily driver, either.
These issues can be addressed by purchasing a classic auto policy.
In many ways these policies have the same coverages you would find on a standard automobile policy. They cover you for liability if you cause property damage or bodily injury to somebody else. They also cover your vehicle if it is damaged.
Here are some of the key differences you will find on a classic auto policy versus a standard personal auto.
Agreed Value - Most cars you see on the road today are easy to price. Generally speaking, depending on the year, make, model, mileage, and general condition of a vehicle it is relatively easy to come up with a value for it. On a classic car, you need to come to an agreement on the value of the vehicle with the insurer. This can typically be done through appraisal. Also, over time your vehicle may actually appreciate based on the market changes. if similar vehicles are sold on the open market at a particular amount, it can help determine a value to insure the vehicle for.
Usage - there are typically more limitations to the usage of a classic / collector vehicle. They could limit you to driving to and from auto shows, car meets, cars & coffee, etc. Companies like Hagerty allow occasional pleasure use and weekend cruises. It is important to know the usage & mileage limitations on a particular insurer's policy.
Reduced Premiums - Classic car policy are generally very affordable. In a lot of cases these policies are half the cost of a standard automobile policy. Again, this has to do with understanding the vehicle is being used less frequently than a standard auto.
Vehicle Under Construction Coverage - If you have a restoration project going on, you can get an automatic increase in coverage based on how far you are into your project. This is typically done on a monthly interval. The company may request photos of the progress to keep on file.
Spare Parts Coverage - If you keep extra parts for your hot rod on the side for repairs and maintenance the policy can apply coverage for those parts.
Memorabilia - Adding something special to your vehicle like a vintage hood ornament or bringing antique signage to display with your car at a show may be something you want to protect.
At Summit we have multiple markets to cover your classic car with. Let us insure your passion!