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.

Posted: July 28th, 2009 under Classic Car Insurance Explained.