Switching car insurance for classic cars isn’t as straightforward as swapping policies for your daily driver. Classic cars come with unique considerations—specialized coverage, agreed-value policies, and even restrictions on mileage. With rising inflation, supply chain disruptions, and climate-related risks affecting insurance premiums, now is the perfect time to reevaluate your classic car insurance.
Standard auto insurance typically uses actual cash value (ACV), which factors in depreciation. For classic cars, agreed-value coverage is far more common. This means you and the insurer agree on the car’s worth upfront, ensuring you’re compensated fairly in case of a total loss.
Most classic car insurers impose annual mileage limits, often between 1,000 and 5,000 miles. If you’re planning a cross-country road trip in your vintage Mustang, you’ll need a policy that accommodates higher mileage.
Insurance providers may require secure, enclosed storage (like a garage) to minimize theft or weather damage. If you park your classic car outdoors, you might face higher premiums or even denial of coverage.
Before making a switch, scrutinize your existing coverage:
- Agreed-value amount – Is it still accurate after market fluctuations?
- Deductibles – Could you afford a higher deductible for lower premiums?
- Usage clauses – Are you complying with mileage and storage rules?
Not all insurers handle classic cars well. Look for companies specializing in collector vehicles, such as:
- Hagerty
- Grundy
- American Modern
- Chubb
Compare their coverage options, claims process, and customer reviews.
Request quotes from at least three insurers. Be prepared to provide:
- Photos of the car (interior, exterior, engine)
- Appraisal or valuation documents
- Driving history (some insurers check for violations)
Many classic car insurers offer discounts for:
- Multi-car policies (insuring multiple classics under one provider)
- Club memberships (e.g., Antique Automobile Club of America)
- Safety features (alarms, GPS trackers)
Watch out for exclusions, such as:
- Racing or track use (unless you add an endorsement)
- Unapproved modifications (some insurers require notification for major changes)
- International travel restrictions (if you plan to drive your classic abroad)
Once you’ve secured new coverage:
- Avoid a coverage gap – Schedule the new policy to start before canceling the old one.
- Get written confirmation – Ensure your previous insurer acknowledges the cancellation.
With inflation driving up labor and parts costs, insurers are adjusting premiums. If your classic car’s value has increased, update your agreed-value coverage accordingly.
More frequent hurricanes, floods, and wildfires mean higher risks for classic cars stored in vulnerable areas. Some insurers now offer climate-specific endorsements for added protection.
Vintage car parts are harder to source due to global supply chain disruptions. Policies with flexible repair options (like using aftermarket or custom parts) can prevent claim delays.
Some owners are converting classic cars to electric vehicles (EVs). Not all insurers cover these modifications, so check if your provider allows EV endorsements.
A standard auto policy won’t account for your car’s collector value. Always opt for specialized classic car insurance.
If your insurer requires a locked garage, failing to comply could void your coverage. Consider installing surveillance cameras or alarms for extra protection.
Classic car values fluctuate. If you’ve restored or upgraded your vehicle, get a new appraisal to ensure proper coverage.
Many classic car insurers offer specialized roadside assistance for vintage vehicles. Standard towing services might not handle classics properly.
Switching classic car insurance requires careful planning, but the effort can save you money and ensure better protection. Stay informed about market trends, policy changes, and new coverage options to keep your prized vehicle secure. Whether you’re dealing with inflation, climate risks, or new tech like EV conversions, the right insurance policy will adapt to your needs.
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Author: Health Insurance Kit
Link: https://healthinsurancekit.github.io/blog/how-to-switch-car-insurance-for-classic-cars-6543.htm
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