News for July 2009
Where can I get low cost, affordable classic car insurance?
Classic, vintage and antique vehicle owners who have their vehicles insured through standard insurance providers often complain about high premiums and undervaluation of their vehicles. This usually comes about because standard insurance plans assume that you’ll be using a vehicle for regular use – commuting or driving to work, errands, travel, leisure – and this entails a lot of mileage and time on the road, and thus a corresponding quantity of risk. Furthermore, under a standard auto insurance policy, your vehicle is subject to standard valuation practices. This means that, like any regular-use car, the value of even your classic vehicle is assumed to depreciate over time, and therefore, should you experience a total loss, you’ll only get a fraction of the real value of your vehicle back, even though you may be paying a pretty high premium.
The best way to get a much lower premium, and better, more appropriate coverage, is to go with a specialty auto insurance policy, intended specifically for a classic vehicle, through a provider with expertise in this area. The most important thing about this type of policy is that the insurer will recognize that your classic car isn’t going to be on the road that much; in fact, they generally require that you have proof of insurance for another, regular-use vehicle before they’ll insure your classic car. Once this has been established, you can get a much lower premium. After all, if a vehicle isn’t meant to be on the road that often, you shouldn’t have to pay as much to insure it. Also, under a specialty classic auto insurance policy, the value of your vehicle will actually appreciate over time – as it should.
There are a number of insurers that specialize in providing policies geared specifically toward classic, vintage, and antique automobiles. Additionally, each provider offers its own advantages, so it’s worthwhile to take the time necessary to figure out which one has the best policy for your particular vehicle and situation. Among these are: American Collectors Insurance, which offers flexible mileage plans tailored to meet your needs; CHROME Specialty Vehicle Insurance, which offers a volume discount for owners of multiple classic vehicles; Grundy Worldwide, which has no limitations on the model or year of vehicles it will cover; Hagerty Insurance, known for a wide variety of private client services and community-type features; Leland-West Insurance Brokers, who offer new purchase coverage of up to $100,000; and Sneed Insurance, covering a wide variety of exotics at affordable premiums.
Compared to the sort of coverage you can get with a conventional auto insurance policy, these and other specialty classic car insurance providers will cover your classic car at a much lower cost. Perhaps even more importantly, these policies will cover your vehicle at a proper, accurate valuation, and in situations which aren’t normally covered under standard insurance policies, such as car shows, foreign tours, shipping, and restoration. Who knows – with the savings from a true classic car insurance plan, you might just be able to get even more enjoyment out of the hobby.
Edited: July 29th, 2009
What types of auto insurance are there for a classic car?
Standard auto insurance generally covers only “regular” use. This essentially means that you’re only covered when you’re on the road, and even then possibly not. Insurance companies, after all, are infamous for refusing their customers’ coverage on the most obscure of technicalities. If you have a classic, vintage, or antique automobile covered under a standard auto insurance policy, you probably aren’t covered for the variety of situations which are only part of the territory when it comes to classic vehicles.
Fortunately, there are a number of providers who offer insurance geared specifically toward classic cars, and with many of these policies you’ll be covered under a much wider range of situations and circumstances compared to the coverage you’re currently getting from a regular auto insurer.
Each policy incorporates its own set of coverages, but here’s a brief introduction to some of the types of insurance that exist for classic cars.
Most commonly, and most appropriately, many specialty classic vehicle insurance policies cover both damages and liabilities from auto shows. This can even include medical costs incurred at shows. Since shows are an integral part of the classic car hobby, this area of coverage is considered a must-have by many owners. There are quite a few policies that even extend liability and damage coverage to shipping and overseas tours, including foreign liability and insurance, and some offer coverage for expenses that occur as a result of accidents or breakdowns while on tour, including roadside assistance and even lodging.
Another type of coverage available to classic car owners is new purchase coverage, under which any classic vehicle newly purchased during the policy term is automatically covered for a certain period and up to a value determined by the provider. This means that collectors are free to add to their collections without worrying about insurance coverage, even in the period immediately following their purchase.
Many providers’ plans extend to other items which relate directly to your classic vehicle. These can include spare parts, classic auto-related memorabilia (things like decals, ornaments, external accessories and even various types of trailers), and utility accessories, so that these items, which are often kept in or around the vehicle, are also covered in the event of an accident, theft, or otherwise.
Perhaps the best thing of all is that specialty classic car insurance providers offer these wide-ranging services at significantly lower premiums in comparison to standard auto insurance. In other words, even though the coverage for your classic car is much broader and more appropriate, it’s also a lot cheaper. This means that there’s really no reason not to take a long look at switching to a policy from a specialist in classic, vintage, or antique automobile insurance. In virtually all cases, you’ve got almost nothing to lose, and a lot to gain.
Edited: July 28th, 2009
How can I get immediate car insurance for a classic car?
If you’re a classic, vintage or antique vehicle hobbyist, you know that buying opportunities sometimes come around that are just too good to pass up. Of course, these chances can come along anytime, anywhere. You might be at a show; you might come across something in the classified ads, or an auto-sales specific publication; you might be online, on a site like eBay Motors or Hemmings; you might even just happen to know someone who wants to sell their collectible vehicle.
In these cases, it would certainly be helpful if you could make the purchase without having to worry about insurance. Is it really possible, though, to have an insurance policy that will cover your new purchase, even if it’s a classic vehicle, beginning at the very moment that it enters into your possession? After all, anything can happen, and it would be great if you could be covered should anything happen as you transport the vehicle to your garage, right?
As it happens, immediate coverage is indeed possible. Some specialty classic car insurance providers, insurers who understand the issues facing classic car owners, include something called “new purchase coverage” or some variation thereof as part of their policies. Generally speaking, if you have an existing policy with one of these providers, any additional qualifying vehicle that you purchase during the policy term is automatically covered up to a certain value until the purchase is reviewed, at which time it becomes like any other vehicle you have covered. This means that, in the event that a new addition to your collection encounters a problem, it’s still covered, so you still get the agreed value back in compensation.
Here are some examples of new purchase coverage policy features provided by selected specialty classic car insurers. American Collectors Insurance offers new purchase coverage for a 30-day period at up to $25,000 in value. Grundy Worldwide will also cover new purchases for 30 days. Hagerty Insurance advertises coverage for new, unplanned purchases of up to $50,000 in value. Leland-West Insurance Brokers covers new purchases for up to $100,000. In Canada, Lant & Co. provide automatic new purchase coverage at up to $25,000. This type of coverage can come with restrictions, so it’s best to look at each company’s website, or call for more information, in order to find out whether the situation you’ve got in mind would qualify.
In addition to new purchase coverage, these insurance companies specializing in classic car policies offer a number of features which meet the specific needs of classic car owners, including but not limited to flexible mileage plans, agreed valuation, and coverage that extends to situations like auto shows, land, sea and air freight, and restoration. No matter what your vehicle, if it’s a classic, it’s worthwhile to look into the policies offered by the different specialty providers in order to gain access to these and other features as well as significantly less expensive premiums.
Edited: July 27th, 2009
How can I get classic car insurance in New Jersey?
Before purchasing an auto insurance policy of any kind in New Jersey, you need to be aware of a couple of fundamental things. In New Jersey, every auto insurance policy falls into one of two categories: basic and standard.
Basic auto insurance policies in New Jersey are those which meet the state-defined minimum coverage levels for various types of liabilities, while the “standard” category has its own minimums ($15,000 for injury or death to one person, $30,000 for injury or death to more than one person, $15,000 for personal injury protection, $15,000 for injury to uninsured or underinsured drivers, and $5000 for property damage), which can be freely increased through your provider.
These basics hold true for classic car insurance as well. The vast majority of policies for classic cars will fall under the “standard” category, having greater liability coverages, which only makes sense considering the nature of some of the situations classic cars are meant to be in (shows and so on).
Of course, you’ll want a policy specifically for a classic car, because of the advantages these policies bring: flexible mileage, more extensive coverage, and most importantly (especially in New Jersey, with its notoriously high insurance costs), much lower premiums. Here are some of the insurers that provide this type of specialized classic car insurance in New Jersey.
There’s American Collectors Insurance, based in Cherry Hill, New Jersey, which covers: antique and classic cars, trucks, and motorcycles; antique tractors; custom cars and trucks; exotics and modern limited-production classics; hot rods and street rods; jeeps and military vehicles; kits and replica cars; vehicles undergoing active restoration; and more.
Hagerty Insurance, out of Traverse City, Michigan, covers: antique and classic cars; exotic and special interest cars; classic fire trucks and commercial vehicles; lowriders; vintage military vehicles; modern classics; motorcycles and scooters; muscle cars; high-quality replicas; street rods; classic tractors; trailers for street rods as well as trailers for transporting a classic vehicle; trucks; and vehicles under active restoration.
Leland-West Insurance Brokers, headquartered in Fresno, California, who deal with: exotic autos, muscle cars, antique autos, sports cars from all eras, and rare or collectible vehicles.
Grundy Worldwide, out of Horsham, PA, will cover any vehicle of any make, model or year, provided that it’s used on a limited basis.
These companies and more will provide specialty classic vehicle insurance to owners in New Jersey. Furthermore, most of them will allow you to get a basic quote via their website. This process takes just a few minutes, and that’s time well spent, as you’ll see just how much money you can save in comparison to a conventional auto insurance policy for your classic car. These policies, of course, will include that extended coverage which is so much more appropriate for the classic, vintage, or antique vehicle hobbyist.
Edited: July 26th, 2009
Which car insurance companies insure classic cars?
The basics of car insurance always remain more or less the same. All insurers look at, primarily, the value of the vehicle being covered, and the risk it faces, which in turn is comprised of factors such as the age of the vehicle, the age and record of all drivers being registered, and the environment and situations in which the vehicle will be placed.
This holds true even for insurance for classic, vintage or antique vehicles. As such, most providers that offer car insurance will insure – or at least consider insuring – your classic vehicle based on the usual criteria: the book value of the vehicle (which, of course, has already depreciated significantly and will continue to do so), the age of the vehicle, the cost of repairs in the event of an accident or breakdown, your age and driving record, and the likely toll of “normal” mileage on the vehicle. Even then, standard auto insurance probably won’t cover some of the special situations that apply to classic cars.
Therein lies the problem. Classic cars aren’t used the same way regular cars are. Classic, vintage and antique vehicle owners know the value of their vehicle better than the “book” does; they need their insurance coverage to extend to things like shipping, car shows and events (even overseas ones), and damage to spare parts and other classic memorabilia. Also, classic cars aren’t likely to be driven as much as regular-use vehicles are, so why should the insurance premiums be the same?
There are some insurance providers out there who specialize in classic car insurance, and as such they understand these issues and will generally provide you with a more extensive plan at a significantly lower premium for your classic vehicle than any standard insurer will. Furthermore, with most classic car insurance policies, you decide the value of your vehicle and, what’s more, that value won’t depreciate. In fact, in many cases, the value will go up – just like it should!
These companies include: Grundy Worldwide, out of Horsham, Pennsylvania, perhaps the inventor of specialty classic car insurance; Hagerty Insurance, with offices in the US, UK, and Canada, which offers a wide variety of extended services; American Collectors Insurance, based in Cherry Hill, New Jersey, known for their flexible mileage plans; CHROME, part of the ANPAC insurance group, headquartered in Springfield, Missouri, offering a significant volume discount on classic car insurance; and Leland-West Insurance Brokers, out of Fresno, California, featuring new purchase coverage for up to $100,000.
Getting a policy through one of these or any other classic car insurance specialist is the only way to get a fair premium. Standard insurers will treat your classic car the same way as any other vehicle. Thankfully, companies that provide car insurance specifically tailored to classic, vintage and antique vehicles understand the issues that pertain to your vehicle; they’ll value your car properly, cover you in any situation, and recognize that you use your car for pleasure, not for regular use.
Edited: July 26th, 2009
What’s the difference between auto insurance for classic and regular cars?
There are a number of ways in which auto insurance for classic vehicles is different from standard car insurance. Of course, both cover the basics of insurance: the valuation of the vehicle, the age and driving record of anyone who’s going to be driving the vehicle, and considerations of any other sort of risk the vehicle might face. However, the differences between the two types of insurance can be very significant and have implications in terms of coverage and premiums.
One of the most important areas in which standard auto insurance and classic auto insurance differ from one another is that of the valuation of the vehicle in question. Standard car insurance policies usually use either “actual value” or “stated value” methods to determine this. Actual value is the so-called “book” value of the vehicle. These values, in almost every case, will depreciate rapidly with time, so vehicles more than even a few years old are considered to be worth a fraction of their original cost, meaning that, in the event of a total loss, the policy holder can receive a virtual pittance. Stated value policies allow the owner to state the value of his or her vehicle, but this figure too will depreciate with time. On the other hand, classic car insurance policies usually use the “agreed value” system. With agreed value, the owner decides the valuation of the vehicle (usually to be confirmed by the insurer). This value then appreciates, instead of depreciating, over time, ensuring that the value of the classic car is properly recognized should it ever need to be replaced.
Standard and classic auto insurance also differ with regard to how they handle considerations of mileage. Under standard auto insurance, mileage isn’t that much of an issue; insurers assume that your vehicle is going to be used for “regular” purposes, meaning commuting, pleasure, travel and more; this, of course, can add up to a lot of mileage, and insurance companies take this into consideration when figuring out things like depreciation and so on. Specialty auto insurance policies, though, generally assume that 1) you have another regular-use vehicle under a standard policy and 2) your classic car is being used for pleasure purposes only, and thus sees limited mileage. Some providers of insurance for classic and antique vehicles even offer flexible mileage plans, so you can get an even lower premium if your vehicle sees relatively little use.
Insurance for regular-use cars, appropriately enough, tends to cover regular use only. Insurance companies are notorious for finding ways to invalidate your coverage, so any sort of usage that falls outside the norm is not going to be covered. Classic cars, of course, often need to go into restoration, or be shipped over land or through the air, and, of course, appear at shows. A good insurance policy for a classic car will cover your vehicle in all these situations and then some. Furthermore, classic car insurance policies can offer liability coverage for these sorts of situations as well, so that, even in the variety of situations in which classic vehicles can find themselves, their owners have the piece of mind of knowing that, should anything happen, they’ll be covered.
Edited: July 26th, 2009
What defines a classic or vintage car?
Among hobbyists, the issue of how to define “classic,” “vintage” and “antique” automobiles can get pretty specific. Of course, for people who are so passionate about something, with such a great eye for detail, that’s only natural. Although it can differ depending on where you are or who you ask, generally speaking, there are a few categories into which classic cars can be placed.
Vehicles manufactured prior to 1904 – the first “horseless carriages” and just beyond – come from what’s known as the “Veteran” era. The period between 1905 and 1918 is known as the “Edwardian” period; this term is especially common in the UK, and this is the era in which the British motor industry really began to distinguish itself. Vehicles produced from 1919 to 1930 belong to the “Vintage” era, while cars manufactured after that, and generally up to as recently as 25 years ago, are widely considered to fall into the “classic” category. Additionally, beyond that, limited-production, special edition, or otherwise rare, special or particularly collectible vehicles are often thought of as “modern classics.”
That being said, when it comes to getting specialty classic vehicle insurance, it really depends on what the insurer defines as a classic. Each insurance provider has its own guidelines as to what it will or won’t cover. There are some basic guidelines that apply to the majority of providers: in order to get an insurance policy for a classic car, the car needs to be used on a limited basis only (with proof provided of a regular-use vehicle currently under appropriate insurance), and there’s usually a prohibition on cars used in racing or other timed events.
However, apart from that, there are a variety of possibilities as to what sort of vehicles companies will consider for their specialty classic car insurance coverages. Grundy Worldwide has no model or year limitations, so any vehicle used on a limited basis is potentially eligible. CHROME stands for “Classic/Antique – Hot Rod/Street Rod – Replica/Kit Car – Original – Modified/Custom – Exotic,” which should give you some idea as to what they cover. American Collectors Insurance and Leland-West cover vehicles in a variety of categories as well, mostly ranging from generally accepted “classics” to many exotics and modern classics up to the present day under their specialty policies, while Hagerty covers similar ranges as well as select classic fire trucks and commercial vehicles, among others. Sneed Insurance covers vehicles over $5000 in value, including a wide range of exotics such as Miatas.
Thus, there are perhaps surprisingly many vehicles that can be considered classic or vintage, especially when it comes to insurance coverage. Specialty classic auto insurance, in turn, is a must for hobbyists, as it can often result in significantly reduced premiums compared to standard auto insurance. Furthermore, specialty insurance will cover your classic vehicle even in the variety of situations which are unique to classics, such as shows, shipping, and even overseas tours.
Edited: July 25th, 2009
Insurance information for New Jersey classic car drivers
Every state has its own legislation and regulations as per insurance, and car insurance is one of the areas in which these rules can vary the most. New Jersey is no different in this respect. In fact, New Jersey is known for having some fairly complex auto insurance regulations, which apply to both regular and classic vehicle drivers.
In New Jersey, there are two categories into which auto insurance liability coverage falls: basic, and standard. Basic coverage provides dollar amounts for liabilities which only meet the state-defined minimum requirements: $10,000 for injury or death to more than one person, and $5000 for property damage. Under basic coverage, there is no provision for liabilities incurred by bodily injuries to one person.
Standard coverage, which makes up the majority of policies used in New Jersey, has the following liability minimums: $15,000 for injury or death to one person; $30,000 for injury or death to more than one person; $15,000 for personal injury protection (a no-fault coverage for personal injuries); $15,000 for injury to uninsured or underinsured motorists; and $5000 for property damage. Additionally, with plans which fall into the standard coverage category, you have the option of purchasing higher protections through your insurance provider.
Also, in New Jersey you are able to self-insure if you have over 25 vehicles registered in your name. This may be an appropriate option for some types of business owners.
As in most states, New Jersey law requires that you have proof of insurance available when driving at all times. The accepted forms to prove coverage are: an insurance ID card issued by a registered provider; or a certificate of self-insurance. The penalties for driving without proof of insurance are: for a first offense, a $300 fine, community service, and a one-year licence suspension; for a second offense, a $500 fine, 14 days in prison, 30 days of community service, and a two-year suspension.
When it comes to classic car insurance, the parameters for “standard” plans generally apply in terms of liability minimums. Classic car insurance is essentially no different under law in New Jersey. However, it can differ with regard to the services and coverage available from insurers as well as the average amount for premiums. By obtaining a specialized classic vehicle insurance policy, you can get liability coverages that extend far beyond everyday driving situations, reflecting the reality of classic car ownership. These coverages can include: coverage for liabilities incurred at auto shows, including both damage and medical expenses; liability coverage for foreign tours; coverage for vehicles under restoration; and more.
Many of the well-known providers of specialty classic vehicle insurance offer policies that are available in New Jersey, as well as most other states. While the state-legislated minimums do apply to classic car insurance, a good policy will provide coverage much more appropriately and broadly for your classic vehicle, and most likely at a significantly lower price point.
Edited: July 24th, 2009
How do I get a classic car insurance quote online?
Nowadays, many insurance companies offer a non-binding online quote service, which can generally be completed in a matter of minutes. Insurance quotes for classic car insurance, although they can be somewhat more involved than regular car insurance quotes, taking into account a number of additional factors, aren’t all that different in this respect. The following is a walkthrough for a couple of select online quote services for classic car insurance, which should give you some idea as to how simple it is.
For the purposes of this experiment, I’ll be using an imaginary non-modified 1929 Ford Model A pick-up, garaged in Sacramento, California, with a value of $10,000 and annual mileage of 1000.
First, I’ll get a quote through Grundy Worldwide. The link to the quote service is displayed prominently on the front page of their website. Initially, you’ll have to enter some personal information: name, location, phone number, email address, and so on. On the next page is the information about the vehicle itself. You enter the year, make, model, Vehicle Identification Number (this is an optional field), agreed value, and whether the vehicle has been modified or not. You can then select your liability coverage: $100,000, $300,000, or $500,000. I’ll select $100,000. You also appear to have a choice as to whether or not you want “comp and collision” coverage, but in this case it’s the only option available. You can then add more cars to your quote, but I’ll stop with just this one.
After clicking “continue,” I receive my quote: a liability rate of $30, comp and collision rate of $55, and $1 of tax, for a total of $86. Grundy notes that their online quotes do not include the driver’s age or record or some other factors which may lead to slightly more expensive premiums.
Also, I am now going to use American Collectors Insurance’s website to get a quote for the same vehicle. They first ask for your state, name, and email address, which you can later use to register with their site and save your quote for future use. Next, you are asked to input information about your vehicle, selecting a vehicle type (from a list of “Original, “Modified,” “Replica,” “Kit,” or “Exotic/Special Interest”), year, make (from a drop-down list), model, agreed value, annual mileage, garaging structure (from another drop-down list), and whether you are currently in custody of the vehicle. On the next page, you have a choice in terms of your comprehensive deductible ($0, $250, $500, $1000, or 5%, 10%, 15%, or 20% of the vehicle’s value), collision deductible (the same choices, as well as the option to reject this deductible), and whether or not you’d like liability coverage. I select the 5% options for both deductibles, and “yes” to liability coverage. Note that, when you’re going through American Collectors’ quote process, you’ll see detailed information about each field as you complete it, so everything is made quite clear.
After this, you’ll see your estimated premium. In this case, it’s $96.75, which includes American Collectors’ “TLC” plan and $500 of spare parts coverage. You can also click on a button reading “Detailed Estimate,” which will give you a comprehensive breakdown of how the total premium is derived.
Edited: July 24th, 2009
Insurance Quotes From Classic Car Insurance Specialists
No matter what kind of insurance you’re looking for, there are a number of ways in which you can get a quote: in person, by telephone or mail, or over the internet. Providers that specialize in vintage and/or antique car insurance, although they offer somewhat different services (which can include, for example, flexible rates based on mileage as well as numerous different kinds of coverage), are no different.
Nowadays, most insurers will provide you with a quote instantly via their websites. You’ll usually be asked to provide a range of information in order to receive an accurate quote. First, you’ll input basic information such as date of birth and location data, possibly including the location of the vehicle’s registration as well as the location where it’s garaged.
Then, you’ll probably be asked to enter information relating to the car itself. This almost always includes the make, model and year. The type of vehicle (car, truck, motorcycle, etc.) may also be required. Most classic car insurers use an agreed-value system, in which cases you will be required to enter your valuation of the vehicle, as well as whether it has been modified or not. You may also have some choice as to your deductible. Information concerning the garage in which the car is stored, mileage, and more may also be requested.
Your quote will be revealed after all information has been submitted. For example, a hypothetical non-modified 1962 Mercedes-Benz 190SL registered in Florida with a valuation of $60,000 was given these quotes from classic car insurers: Hagerty - $509; Grundy - $429.25; American Collectors - $427.18. Of course, these quotes contain much more detail than just the annual fees themselves and are based on numerous variables. They almost always list liability details, and most provide you with the opportunity to view a detailed breakdown of the things that help make up the final price. Finally, many companies will allow you to register and save your quote for comparison purposes so that you can come back later and officially apply for insurance.
It generally takes just a few minutes to obtain a quote online, regardless of the uniqueness of your car. For vintage vehicle owners, it’s definitely worth the effort to take this time to compare quotes and see where the best value can be found.
Edited: July 22nd, 2009