What You Need to Know About Insuring Classic Cars - NYCM Insurance Blog

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May 18, 2020

What You Need to Know About Insuring Classic Cars



Whether you’re already the proud owner of a classic car, in line to inherit one, or thinking of purchasing one, then you may be wondering how to best insure your investment and enjoy your vehicle for many years to come. Aside from keeping your vehicle well maintained and clean, another important aspect of protecting your “fun car” is making sure it’s properly insured.

While at the heart of it, your classic car is in fact an automobile, traditional car insurance is not built to protect classic cars. There are a lot of factors that differentiate classic cars from their more common brethren, including but not limited to - it’s value and the driving behavior of those who own them. That’s why it’s so important to have an insurance policy designed for collector cars!

What makes a car “classic?”

Most insurance companies have slightly different definitions as to what makes cars “classic.” That being said, classic cars are vehicles that are typically categorized as “fun to drive” and either maintain or appreciate in value over time. Age also plays a factor. Most companies will define a classic car as one that is at least 25 years of age.

How is classic car insurance different from regular car insurance?

Great question. Carriers understand that classic cars are not driven the same as regular, everyday cars. Here are a couple of things that make classic car insurance different:

       Lower Premiums. There is an understanding that classic cars are driven less frequently than your everyday car. After all, this is your fun car! Not your daily commute car. Because these cars are being driven less, insurance companies feel comfortable offering a lower premium.
       Designed for careful drivers. Another component that influences that lower premium is the understanding that when you do drive your classic car, you will do so carefully. These are collector items! It’s understood that you’re going to be extremely careful when taking your prized possession out on the road.

What qualifies a vehicle for classic car insurance?

Calling a car “classic” or “collectible” doesn’t necessarily make it so in the eyes of insurance companies! Instead, there are a few different qualifying factors that make your vehicle eligible for classic car insurance:
       Age: To qualify for classic car insurance, your vehicle must be on the older side. That’s what makes them classic, after all! While most carriers have their own specifications, it’s common for classic cars to be categorized as those manufactured in 1979 or older.
       Specialty: Is your car categorized as being “exotic,” “custom” or “collectible?” Then it will probably qualify for classic or collector car insurance.

When applying for a policy, your insurance company will also look into several factors. Here are some things that may be required:

       A covered storage facility or garage where the vehicle will be kept when not in use.
       Proof that you own another vehicle, showing that your classic car is not your main mode of transportation.
       Ten or more years of driving experience, with a clean record, free of major accidents.

It’s also important that you do not have teen drivers or inexperienced drivers with a not-so-clean driving record on your policy. Doing so will probably be a red flag to most insurance companies.

How do I get a quote for my classic car? 

NYCM Insurance Agency, Inc. is proud to partner with Hagerty to offer insurance for classic vehicles. If you have a classic or collector car that you would like to quote for an insurance policy, click on the button below to find an agent near you.




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