Classic Car Insurance
These legends were born in a different time. Classic cars are memory keepers and exquisite storytellers and deserve the best care and protection.
Classic Car Insurance
What is Classic Car insurance?
What is Classic Car Insurance? Classic Car insurance is specifically created to insure classic, antique, or collectible vehicles.
Just by looking at the Declaration Pages, you may notice that the coverage options and limits of the Classic Car insurance are very similar to your regular Auto policy. There are definitely some major differences between the two, and we will get to them in a moment, but first, let’s go over the coverage options and their use.
Bodily Injury Coverage
Bodily Injury coverage is usually displayed as follows 15/30 or 50/100, or 250/500, for example. This coverage is used if an accident was determined to be your fault and is paid to the injured party. Let’s take 250/500 as an example here. The first number shows the maximum amount that would be paid for bodily injuries to one person. In this case, it is $250,000.
The second number shows the maximum amount that would be paid for the bodily injuries per accident if more than one person is involved. And in this case, it is $500,000.
Bodily Injury coverage is mandatory and included in every Auto insurance.
Property Damage Coverage
Property Damage coverage may be shown as the third number: 250/500/250 or just a separate amount as $250,000. This coverage is paid to the other party in case the accident was your fault and is meant to cover the damages you have caused. Property Damage coverage is truly what it is – for the property. It includes cars, buildings, fences, poles, etc. This coverage is not just to pay for the repairs or a replacement of the vehicle, for example, but also the rental car charges, towing, storage, debris removal, damaged laptop in the car crash, and so on.
Property Damage coverage is just like Bodily Injury coverage, mandatory, and is included in every Auto insurance.
Medical Payments Coverage
Medical Payments coverage is for you and your passengers and can be used regardless of who was at fault. The limit you would see is meant per person. The minimum amount usually offered is $1000, and depending on the insurance company you have or are planning to have, this limit can go as high as $100k.
The benefit of Medical Payments coverage is that you can use it like health insurance for your medical and emergency expenses. Still, there are no deductibles, no coinsurance, no copay, and again, you can take care of the medical expenses of the injured passengers of your car as well.
Medical Payments is optional coverage and is not automatically included in the policy.
Uninsured Motorist Bodily Injury Coverage
Uninsured/Underinsured Motorist Bodily Injury coverage or UMBI is often matched with the limits of Bodily Injury coverage and is also displayed as two values, for example, 15/30 or 25/50 or 300/300, etc.
UMBI is for any bodily injuries you or your passengers have sustained due to an accident that was not your fault. However, the at-fault person does not have enough insurance, hence the “Underinsured” or does not have any insurance.
Your own insurance company will take care of your and your passenger’s medical expenses, and then they will work on getting money from the at-fault person. But this will not be your worry.
Just like in the previously discussed Bodily Injury coverage section, UMBI’s first limit is the maximum amount the insurance company will pay per person, and the second limit is the total amount that will be applied per accident if more than one person is involved.
UMBI is an optional coverage and is not automatically included in the policy.
Comprehensive Coverage is displayed as a Deductible on the policy. This is the amount you would need to meet first before the insurance kicks in. For example, your deductible listed is $500. It was determined that to repair the covered damage of your car will be $700. You will pay the $500, and the insurance company will cover the $200.
If the car is stolen, and it is determined that the total value of the vehicle on the day of a loss (or agreed value – on that later) is $50,000, for example. The insurance company will give you $49,500 (less the $500 deductible).
Comprehensive Coverage covers the damages to your car caused by something other than collision. That would include damages caused by fire, theft, vandalism, falling objects, windstorm, or flood.
Collision Coverage is another coverage that is displayed as a Deductible. It is used to replace your car or repair the damages of your car caused by colliding with another vehicle or an object, for example, a deer, rock, tree, guardrail, building, or a person.
Comprehensive and Collision coverages are optional, so if you want any coverage for your car, make sure these are added to the policy. Now, if you are financing or leasing the vehicle, your Finance or Leasing company will require both Collision and Comprehensive coverage to be added.
Collision Deductible Waiver
Collision Deductible Waiver or CDW is not usually displayed as any number but rather as a checkmark. CDW lets you use your insurance company to fix damages to your car or replace it altogether due to an accident caused by a person without insurance or who did not have enough insurance. CDW will waive your Collision Deductibles in this case.
Uninsured Motorist Property Damage Coverage
Uninsured Motorist Property Damage coverage or UMPD is selected if you did not choose to have the Collision and Comprehensive coverage. The maximum limit you will see on your policy is $3,500. UMPD is used in case you’re involved in an accident, and the person at fault has no insurance.
Both CDW and UMPD are optional.
Rental Reimbursement Coverage
Rental Reimbursement coverage is used to reimburse you for the charges by the Car Rental place. This coverage is not for your weekend road trip rental but for the car you had to rent after a covered accident/incident.
Rental Reimbursement is often displayed as 30/30 or 45/30, etc., but sometimes you may see it listed as $900, for example. In the case of the 30/30 – the first number is the maximum amount ($30) the insurance company will reimburse you for the rental per day. The second number is the maximum number of days they will reimburse you for; in this case, it is 30 days. If the number is listed as $900 – it often means that this is simply the maximum amount they will reimburse you for, but please read your policy jacket or consult with your agent to confirm.
Rental Reimbursement is an optional coverage, and you must select it with the limits that suit your lifestyle.
Roadside Assistance Coverage
Roadside Assistance coverage is your go-to for any towing, locked keys inside, change of tires, gas delivery, etc. Every insurance company has its own list of services they offer under this coverage, the maximum towing mileage, the number of times you can use this coverage during the policy term, and even if they reimburse you or would offer their own services – these will be listed on the Declaration pages. And, of course, consult your agent or broker with any questions.
Roadside is also an optional coverage.
Other Coverage Options
There are a lot of other coverage options that widely differ from company to company. Consult with your agent to see what else should or can be added to your policy. Or what is already included and you were not even aware of, like pet coverage, replacement of the keys, or worldwide coverage, for example.
Classic Car Valuation
Now, let’s finally go over the specifics of Classic Car insurance.
One of the differentiators of Classic Car insurance is the car’s valuation. Regular Auto insurance usually determines the value of the vehicle based on its Actual Cash Value (ACV) – how much it is worth today. The car’s age, wear, tear, make, and model are some factors in this determination.
Now, if you take a classic car and use the same attributes, your 1965 Ford Mustang may turn out to be worth $500, for example. However, this car may be worth $70,000 in fully restored condition.
You would want to make sure you choose the Guaranteed or Agreed Value. So, in case of a total loss, that would be the value paid to you. That’s the amount your Comprehensive and Collision coverage will be based on.
Classic Car Use
Another difference is the use of the car. When you have personal and business use options in regular Auto insurance, Classic Car insurance would look at factors such as regular use or show/restricted use. Regular use means driving regularly, even if the mileage is not high. The show or restricted use means the car is driven to car shows, in road rallies, for general pleasure, and occasionally to work, for example, and usually lower than 5,000 miles per year.
Classics are not just cars; this is an investment. It’s very personal. It’s pride and love. You know how much work went into restoring and modifying your classic, how much money and effort it took to make sure every single part and detail is just right. Having proper insurance is just as important in protecting this asset of yours. Contact our office today – we will be happy to be a part of your wonderful adventure.