There are a few very important differences between regular car insurance policies and those for classics and other collector cars. We often talk about all things related to classic cars on Dave’s Corner Garage. For those vehicles, what you buy is known as a specialty insurance policy – one that both you and your car has to qualify for. How do you know if you both qualify? Simply check out the following requirements:
What qualifies a driver for classic car insurance?
“Most drivers who already have auto insurance will qualify for classic and collector car insurance if they have a good driving record”, says Geoff Coy, Vice President, Business Development at Lant Insurance. “Usually, you will have to be a licensed driver for a specified number of years, typically ten years. If you have a clean driving record going back at least 6 years, you should have no problem qualifying. You will need to show proof of insurance on another vehicle – your daily driver – to guarantee that your classic car will not have to handle those duties.”
What qualifies a vehicle for classic car insurance?
Insurance companies have varying qualifications for your vehicle to meet as a classic or collector car. For classics, some insist your car must be 25 years old, while others accept 15 as the required minimum age limit. Collector cars, on the other hand, could be modern collectibles that are rare and/or limited in number. There may be other limitations as well, such as, certain modifications being unacceptable, and in the case of collector cars, depending on their desirability and production numbers. But generally, vehicle age is the primary qualifier.
If both you and your car qualify for a classic car or collector car insurance policy, moving forward, there are some significant advantages as well as limitation requirements you should be aware of. And keep in mind, the guarantees you agree to, when setting up your policy, will dictate the rates your insurance will cost based on how you wish to use your classic or collector car.
Vehicle Usage Limitations
Almost all classic and collector car insurance policies have specific limitations on what you can do with your car. For example, your policy may restrict certain kinds of events and activities you can participate in. Any competitions that involve performance, such as racing or timed events, will be off limits for almost all policies. Your car also cannot be used for daily transportation, driving to/from work and running errands. However, your car is still meant to be driven around and enjoyed. Hobby use, such as car shows and cruise nights, are permitted.
There may, of course, be specified limitations on who, besides you, can drive your car.
Policy costs are based on risk
Most things associated with classic cars are more expensive than usual, but insurance is an exception. There are good reasons for that. Collector cars are valued possessions that owners take special care of. They’re not to be used as daily drivers, and since accident risks are reduced because of that, the cost of insurance is also less.
Any other guarantees you specify in your policy also emphasize the fact that this is a highly protected vehicle, not subject to normal traffic, parking, or weather-born risks.