Differences Between Classic and Standard Car Insurance

Car enthusiasts like classic units for their gorgeous looks and universal appeal. Regardless of the model, Porsche 911, Ferrari 250 GTO, or Aston Martin DB4, it's a masterpiece that flutters your heart.

That said, you need special insurance to protect the vintage car and your passion. Although standard insurance can cover a classic unit, it can’t provide comprehensive coverage. Classic car insurance considers age, special use, total loss, and modifications.

Ultimately, classic car insurance is the perfect fit and protection for classic cars.

Below are the key differences between classic and standard car insurance.

Vehicle Usage

Classic car insurance is designed for vintage cars that are ‘collected’ and not driven regularly. To qualify for classic car insurance, a vintage owner must prove ownership of an alternative vehicle for their daily commute.

Classic cars are reserved for parade car shows, leisure drives, or exhibitions. Therefore, insurers require owners who use classic cars for regular use to buy standard car insurance. A regular car insurance policy is open to multiple purposes, whether private or business use.

Value of Total Loss

An insurer determines the total loss payable of a standard insurance policy at the start of the policy period. In a nutshell, regular insurance covers a fixed value during the policy period.

On the contrary, classic cars require a continuous assessment to determine the total value of the loss. For instance, a classic car insured before restoration shall have an enhanced value once the project is complete. Effectively, the improved value of the restored car increases the payable premiums.

Eligible Vehicles

Insurance companies designed classic car insurance to cover cars of a specific age limit (25 years and above). The eligible vehicles include classic, vintage, or exotic models that are collectible and grow in value.

Examples of classic cars include:

  • Classic motorbikes
  • Vintage cars manufactured between 1913 and 1930
  • Antique farm vehicles
  • Collector models made before 1980
  • Vintage Military Vehicles

More importantly, the vehicle owner should provide proof of safe storage, low mileage per year, and regular maintenance, among other conditions.

On the contrary, standard insurance is designed for newer and older vehicles applied for regular use.

The Maximum Value of the Car

Insurers determine the maximum value of classic cars in different ways. One widely used method is a consensus, which applies an agreed value. Remember, if you bought a classic car for $1,500 15 years ago, today it could be worth $20,000. To simplify the process, the insurer can reach a consensus with the client.

 The insurer also synchronizes the agreement with key documents like the purchase agreement or valuation report.

Standard insurance applies factors like the current selling price, purchase price, and comparison with other cars of similar make and model. Adjustments are made based on depreciation, mileage, and maintenance.

Talk to an Experienced Vintage Car Insurance Company

You deserve tailor-made insurance solutions if you’re passionate about classic and vintage cars. Mis-matched auto insurance can affect your preparations for the annual car show circuit. At FACE Insurance, we take pride in offering dedicated vintage car insurance. Contact us today to learn more.