Classic Car Insurance vs. Regular Auto Insurance: What’s the Difference?

Classic cars are more than just vehicles; they are rolling pieces of history, meticulously preserved or lovingly restored to their former glory.  To protect it adequately, you need insurance coverage that understands the unique nature of classic cars. In this blog post, we’ll explore the key differences between classic car insurance and regular auto insurance, helping you make an informed decision to safeguard your automotive treasure.

Classic Car Insurance

Classic car insurance is tailored specifically to the needs of vintage and collectible car owners. Here are the distinctive features that set it apart:

1. Agreed Value Coverage: One of the most significant differences is the way classic car insurance values your vehicle. With classic car insurance, you and your insurer agree on the car’s value upfront. This agreed value is based on factors like the car’s condition, rarity, and market demand. In the event of a total loss, you’ll receive the agreed-upon amount, ensuring your investment is protected.
2. Limited Usage: Classic cars are typically not driven daily or used for commuting. Classic car insurance policies often reflect this by imposing mileage restrictions. These restrictions can help keep premiums lower since the risk of accidents is reduced.
3. Spare Parts Coverage: Classic cars often require specialized or rare parts for repairs and maintenance. Classic car insurance can include coverage for spare parts and accessories.

Regular Auto Insurance

On the other hand, regular auto insurance is designed for everyday vehicles. Here’s how it differs from classic car insurance:

1. Actual Cash Value: Regular auto insurance typically covers the actual cash value (ACV) of your vehicle. ACV considers factors such as depreciation, wear and tear, and market value. This means that in the event of a total loss, you may not receive enough to replace your classic car with a similar one.
2. No Mileage Restrictions: Regular auto insurance policies do not impose mileage restrictions. You can use your vehicle for daily commuting without concern.
3. Standard Parts Coverage: Regular auto insurance policies do not typically provide specialized coverage for spare parts and accessories.

In summary, the key difference between classic car insurance and regular auto insurance lies in how they value and protect your vehicle. Classic car insurance offers tailored coverage, agreed-upon values, and specialized benefits to safeguard your cherished classic. Regular auto insurance, on the other hand, provides standard coverage based on actual cash value and is suitable for daily-driven vehicles.

If you’re the proud owner of a classic car, it’s essential to choose the right insurance coverage that understands and respects the value of your automotive gem. Contact our experienced agents today to discuss your options and ensure your classic car is protected the way it deserves to be.