Special Considerations for Antique and Classic Car Insurance

New Jersey car insurance agent (and classic car buff) Brian Kane recently attended the Barrett Jackson Auto Auction in Scottsdale, Arizona. He did an ad hoc interview with Anthony Kirlew, of AKA Internet Marketing (also a car guy) discussing insurance requirements for antique and classic cars.

To expand on the interview, Kane says that when individuals are looking for insurance for a classic vehicle there are three things to consider:
  1. The actual cash value of the vehicle
  2. The stated value of the vehicle
  3. The agreed upon value for the insurance policy
Insurers of antique and classic vehicles should insure the car based on “agreed value”. Unlike typical vehicle insurance policies in which the cost of the vehicle is not a clearly-stated value, for a classic car policy both the insurer and the car owner must agree on the value. An insurance contract will be signed that states the agreed upon price for which the vehicle will be insured. In the event of a total loss or theft of the classic car, the owner will be paid the agreed upon price. Period. You should not accept any other valuation method.
With classic cars it is crucial that you shop around and talk to various carriers, especially if you cannot come to terms on the agreed upon value of the car. Many classic car insurers also have restrictions on the type of vehicle can be considered classic or modified as well as placing certain restrictions on the driver himself. Underwriting for the driver is more stringent and may permit a minor violation or two, more than 6 years driving experience. Youthful operators must have their own vehicle i.e. 4 drivers in the household; 4 cars in addition to the classic car. The car will be required to be kept in a locked garage. If you’re planning to restore the vehicle let your insurance agent know this as it will likely mean you will need to work out a new agreed upon price once the restoration is complete.
Mileage limit restrictions may also be placed on the vehicle – as in the number of miles in which you can drive it on an annual basis.  You will need to let your insurance agent know how often you drive it and for what purpose. For example do you use it for daily errands? Travel to different cities and states to participate in car shows is permitted. Some companies will allow you to “buy up” to less restrictive terms of use for additional premium.
There is no better person to talk to about your insurance needs for your collector or classic car than Brian. Not only has he been serving insurance needs in New Jersey for over 20 years, but he loves cars! You can reach him at 201-493-9002.