If you’ve stumbled up on this post, you have probably fell in love with a classic car and are trying to figure out if you can afford it. Yeah sure you can afford the car itself, which sometimes can be a feat itself, but can you afford to insure this thing so you can actually drive it?
Well good news! Generally, classic car insurance is the best part of owning an older, “classic”, car. This is because classic car insurance is usually a lot less than regular car insurance. That’s right, you’ll be fine, but if you want to know the gritty details let’s dive in!
The requirements for classic car insurance
It’s important to understand what insurance companies deem as “classic” and whether or not you yourself are eligible to have a classic car insurance. For starters, depending on the insurance company and where you live, the definition of “classic car” can vary. The general rule of thumb is anything 15 years or older is a classic. With that said there are some insurance companies and states that will push this to 20-25 years or older. It is also important to note that some insurance companies will deem newer vehicles classics before they even hit 15 years of age as long as it can be prove they are “special” or limited in production. For example, I know people who have insurance a 2009 Ferrari 360 and another person who insured a 2015 Ford Mustang GT350R as a classic, and both cars were well before the 15 years of age. You’ll have to contact your local insurance companies and clarify the rules with them.
Now as far as you the drive, there are somethings to consider to see if you are eligible for classic insurance. Generally most companies will want you to have a minimum of 7-10 years of driving experience and another car you can say is used for daily use. However, don’t be surprised if insurance companies start getting into finer detail points such as:
- Your driving record (they will want it to be somewhat clean)
- The mileage you plan to put on your classic car
- Where you will store the vehicle (some insurance companies will deny you if you cannot store the vehicle indoors)
- Modifications on the vehicle (some insurance companies will deny you for modifications such as NOS for example)
- What the vehicle appraisal says (most insurance companies will deny you without a vehicle appraisal done on the car)
Once you sort out the details, classic car insurance can be a serious piece of mind! While a regular insurance policy might deem your “old” vehicle as worthless, a classic car insurance policy will value the vehicle based on the appraisal. This is important as it eliminates the factors insurance companies normally look at for values such as age and mileage to an extent. For example, that 1990 Chevrolet Camaro Z28 in mint condition with 95,000 miles might be worth $5,000 on a regular insurance policy but a classic car insurance policy will get you $15-18,000 for it.
Cover your bases and get the right coverage for your vehicle!