Old Car Insurance Vs Classic Car Insurance

Insurance coverage can be confusing, and understanding the various kinds of policies is important.  For example, if you need insurance for an older vehicle, understanding the distinctions between Old Car Insurance and classic car insurance is critical. While classic car insurance coverage policies are specific and designed to cover vehicles at least 30 year old, not all thirty year old vehicles are eligible for classic insurance. To know which cars need more coverage, it is necessary to understand the definitions of classic cars and old cars and what they mean when it comes to insurance.  Antique cars and other classic automobiles are defined as being American-built or internationally built vehicles that are worth more than other cars of that age. This generally means that these vehicles have been reconditioned or restored. While a car may actually be in very good condition for its age, it has to have significant value other than sentimental to qualify for a classic car insurance policy.

Standard car insurance policies, however, are designed to insure private passenger vehicles of any age. The only requirement for this coverage is that the automobiles be driven regularly for commuting or for recreational purposes. This is distinctly different from classic auto insurance policies that have an annual restriction on the number of miles driven each year. Classic cars are usually driven only to car shows or on weekends. Thus, a true classic is unlikely to be used on a regular basis.

While uninsured motorist coverage, liability coverage, personal injury protection, and medical payments are all consistent on different kinds of policies, coverage for physical damage falls into an entirely separate category.  If a 30 year old vehicle is not a classic, no comprehensive and collision are usually necessary because the cost of the insurance is greater than the replacement cost of the vehicle Old Car Insurance.

On the contrary, classic car insurance pays for physical damage based on a predetermined value. Unlike a standard policy, a classic one does not consider the depreciation of the automobile when paying a claim. Instead, premiums based upon the agreed upon value are charged, and that is the amount of coverage for classic car. Therefore, it is important to retain records of all updates and repairs made to a vehicle in order to document potential claims in the future.

For these reasons, insurance coverage policies on old cars are vastly different from the coverage on classic cars. There are far greater considerations than just the age, and it is imperative that collectors of classic cars understand both the fine print of the insurance policies and the values of their treasures in order to fully protect them. For old vehicles without monetary value, the rules of standard insurance coverage apply.