Classic Car Insurance

These legends were born in a different time. Classic cars are the memory keepers and exquisite story tellers 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 collectable 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 the 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 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 like this: 250/500/250 or just a separate amount as $250,000. This coverage is also paid to the other party in case the accident was your fault, and it is meant to cover the damages you have caused. Property Damage coverage is truly what it is – for property. It includes cars, buildings, fences, poles, etc. This coverage is not just to pay for the repairs or a replacement of the car, for example, but also for 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 very minimum amount usually offered is $1000 and, depending on the insurance company you have or planning to have, this limit can go as high as $100k.

The benefit of Medical Payments coverage is that you can use it kind of like health insurance, meaning for your medical and emergency expenses, but 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 an 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 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 at the moment.

Your own insurance company will take care of your and your passengers’ 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 previously discussed Bodily Injury coverage section, UMBI’s first limit is the maximum amount 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 on the policy.

Comprehensive Coverage

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 take care of the $200.

If the car is stolen, and it is determined that the total value of the car 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, for example.

Collision Coverage

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, deer, rock, tree, guardrail, building, or a person.

Both Comprehensive and Collision coverages are optional, so if you want any coverage for your own 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 for 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 own insurance company to fix damages to your car or replace it altogether due to accident that was caused by the person without the 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, who is 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 rather for the car that 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 case of the 30/30 – the first number is the maximum amount ($30) insurance company will reimburse you for the rental per day. The second number is the maximum days they will be reimbursing you for and 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 will have to specifically 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 and so on. 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, with any questions – consult your agent or broker.

Roadside is also an optional coverage.

Other Coverage Options

There are a lot of other coverage options that are 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.

Classic Car Valuation

Now, let’s finally go over the specifics of the Classic Car insurance.

One of the differentiators of the Classic Car insurance is the valuation of the car itself. Regular Auto insurance usually determines the value of the vehicle based on its Actual Cash Value (ACV) – how much it is worth today. The age, wear and tear, make and model are some of the 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, in fully restored condition this car may be worth $70,000.

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 in regular Auto insurance you have personal and business use options, 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, 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 a 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.

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