Classic car insurance provides financial protection for the vehicle's owner and it generally includes coverage similar to liability, comprehensive, and collision, but tailored to a classic car’s needs. While regular car insurance allows you to pick your policy limits, classic car insurance sets your policy limits based on the "book value" of your vehicle, which is a value you and your insurer agree upon based on your car's year, make, and model.
Most insurers will have strict eligibility requirements for classic car policies. These restrictions often include:
Driving restrictions - Owners won't be able to use the vehicles for general transportation.
Driver restrictions - Younger drivers or drivers with recent at-fault accidents on their record might have a hard time finding an insurer to cover them.
Storage requirements - Vehicles must be stored in an enclosed and locked structure.
Classic car insurance can usually be used to cover exotic cars, hot-rods and super-performance vehicles. The requirements for a vehicle to be eligible for a classic car registration will vary greatly based on the state you live in, so make sure to check your state laws before you start shopping for classic car insurance.
A car has to be more than 10 years old to qualify for classic insurance, though exact requirements vary by insurer. In some cases, insurers offer classic car insurance to newer vehicles if they have some amount of collectable value.
Age Requirements for Classic Car Insurance by Company
It’s important to note that age is not the only factor that qualifies a car for classic coverage. For example, State Farm offers classic car insurance to vehicles as young as 10 years old, but the car must be of historic interest, which typically means that it is owned for the main purpose of exhibition and historic vehicle club activities. Additionally, it’s very common for insurers to place strict mileage caps on a classic vehicle, meaning that it can’t be used for everyday driving.
Older cars are less expensive to insure than newer cars, as older cars are cheaper to replace, but the exact cost of insuring an older car depends on a variety of factors, including the types of insurance and the coverage levels that a driver selects. The driver’s age, driving history and claims record are also more likely to have a significant influence on auto insurance rates than the age of the car. … read full answer
There are exceptions to the rule that older cars are more affordable to insure, however, including some foreign-made and classic cars, which may have expensive parts and be difficult to replace. Insurance companies don’t normally offer discounts for older cars, either.
You should pay special attention to the type of coverage you are paying for, if you are insuring an older vehicle. Allstate and the Insurance Informative Institute both say that if your annual premium is more than 10% of your car’s value, you might consider dropping the comprehensive and collision coverage on it.
You should avoid paying more for coverage than the vehicle is worth. However, you might not be able to drop coverage if your car is leased or financed. Insurance requirements vary by state, too, so it’s important to make sure you have at least the minimum amount of coverage needed for your situation, even if your car is older.
The best way to understand the cost of insuring an older car in your specific case is to get quotes from multiple insurance companies.
Older cars are cheaper to insure than newer cars, all else being equal. An older vehicle is cheaper to insure mainly because older cars are less valuable, so an insurer won’t have to pay out as much in the event of a total loss. Plus, once the car falls below a certain value, comprehensive and collision coverages to protect the car itself will actually cost more than they’re worth. You can drop these parts of your insurance altogether and save money.… read full answer
But a car’s age actually has less of an impact on insurance premiums than its make and model. If your older car is a popular model with thieves, has hard-to-find replacement parts, or is a luxury car or high-end sportscar, it could cost more to insure than a brand-new car of a different make and model.
When your car is at a higher risk of being stolen, your premiums are likely to be higher, too. You may think that thieves love flashy sportscars, but many older cars are stolen to be dismantled for parts. Popular targets are chosen because their parts haven’t changed much over the years or because so many of them are still on the road.
Top 5 Most Stolen Used Cars (More Expensive to Insure)
1998 Honda Civic (1998)
1997 Honda Accord (1997)
2006 Ford F-150 (2006)
2004 Chevrolet Silverado
2017 Toyota Camry
There are other reasons an older car could be more expensive to insure. For instance, parts can become hard to find for discontinued makers, like Saab, or less popular models. Trouble finding replacement parts drives up repair costs. That increases the price of insuring a vehicle.
So, in general, older cars are cheaper to insure. But if your older car is one of the special cases with higher insurance costs, shop around for the best price. Not all insurance companies treat all older cars the same.
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