Before You Insure A Classic Car, Check These 10 Things

You can write a check for a classic car in an afternoon. Protecting it takes a little more thought.

A classic teal sedan parked beside a brown brick building in daylight.

Old Cars Weekly, the longtime hobby paper, has published several practical guides on collector car insurance, including “Getting Peace of Mind: The Path to Proper Insurance Coverage” by Gerald Perschbacher in 2007. It also ran a 2009 Q&A with a collector car insurance executive and a 2009 piece with six tips to insuring your collector car.

Put together, they give us 10 things to sort out before you insure. Policies and rules differ by insurer and by state, so treat these as questions to ask, not promises.

1. Shop Around For Insurance Before You Buy The Car

Old Cars Weekly says to plan ahead and get answers about insurance costs before you buy a car, not after. You can compare insurers’ rates and options online, through web searches or by phone.

A surprise premium is a lousy way to start owning a dream car.

The guide also reminds readers that storage, upkeep and insurance all add up when you build a collection, and that multi-car policies may reduce premiums.

2. Remember That The Model Year Does Not Equal Value

Perschbacher writes, “The year does not equal value.” Each model has its own collector following and demand, so one car can be worth far more or less than another from the same year.

The article’s example is that a low-priced convertible may be valued above an expensive limousine because of demand and storage needs.

3. Check More Than One Value Guide

The 2007 guide advises consulting more than one value guide for each car. That helps you avoid buying too much or too little coverage.

It is a simple step, and it can keep you from paying for protection you will never collect.

4. Gather The Details Before You Ask For A Quote

Old Cars Weekly lists what to know: the body type, special features or options, mileage, whether the car is restored or original, production numbers and how many survivors exist.

Have all of that in front of you and the agent can quote you faster and more accurately.

5. Tell The Agent About Famous Owners Or Special History

The article says to disclose a notable first owner or famous connection, since value guides do not track that kind of history.

Rarity matters too. A car with very few survivors may be valued differently than one with many, and replacing it can be hard if it is damaged.

6. Learn The Difference Between Agreed Value And Stated Value

In a 2009 Old Cars Weekly Q&A, Chuck Wasoski of Grundy Worldwide explained that with agreed value, the insurer and owner settle on the car’s value in advance. “In case of a total loss, you will receive that amount,” the article says.

Stated amount policies can work differently. The payout there is the lowest of the stated amount, the repair cost or the actual cash value.

7. Ask About Mileage Limits And How You Plan To Use The Car

The Q&A says the policy it describes has no mileage cap, provided the car is not used for daily transportation. Leisure drives, dinners, shows, parades and club events are the covered uses.

Daily commuting falls outside what the policy covers, so be honest about how you will drive.

The same Q&A lists extras the insurer offers, including towing reimbursement of up to $250, full glass coverage with no deductible, and coverage while the car sits in a repair shop. Features like these vary by state and company, so ask which ones come with yours.

8. Consider An Insurer That Specializes In Collector Cars

The 2007 article says companies that focus on collector cars often offer competitive rates. It suggests asking friends about their experiences, especially with claims.

The Wasoski Q&A explains that rates tend to be low because collector cars are driven limited amounts, garaged and well maintained.

9. Keep Records That Prove What The Car Is Worth

The six-tips piece says that without an agreed-value policy, you may need to prove the car’s worth. Useful records include mileage and maintenance logs, pre-accident photos, receipts for work done and show awards.

Start a folder now. You will be glad you did if you ever need it.

The Wasoski Q&A also mentions Inflation Guard, an option that protects the car’s value, since collector vehicles are said to gain value over time rather than depreciate.

10. Know What To Do If You Have An Accident

Old Cars Weekly says to stay calm and check for injuries, then photograph the damage, the road and any skid marks with a camera or your phone. Know your policy’s requirements, such as taking reasonable steps to prevent further damage.

The same piece notes that authentic parts for collector cars can take longer to find, and that you should choose parts, whether original, new old stock or aftermarket, that best preserve the car’s value.

The 2007 guide also reminds owners to ask about annual mileage limits, trailering, reduced premiums for cars in cold storage and mid-term additions. Ask every question on your list, because an hour on the phone beats a surprise after a claim.

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