There’s no feeling quite like owning a classic car. Whether you found a vehicle that’s miraculously still in mint condition, or you lovingly restored an old beater back to its previous luster, there’s a pride and excitement to driving one of those older beauties that cannot be recreated with some new, cookie cutter vehicle. But driving a classic car doesn’t come without its limitations. Parts are difficult to come by, and you’ll have to hunt for the right products to keep it running smoothly. It won’t stand up to the elements quite as well as newer vehicles, and you obviously won’t enjoy those fancy on board computers, anti-lock brakes and built-in MP3 players that drivers of new luxury vehicles always desire. Instead, the joys of a powerful engine rumbling down the road and the adoring looks of other drivers will make it all worth it. Just make sure you’ve planned for any additional expenses that can make your life complicated. For instance, are classic cars more expensive to insure?
The answer varies, but in general you will find that insurance to be a bit more expensive. The reason starts with how most insurance companies define a car as ‘classic’. What’s the qualification determination? In general, motor vehicle insurers look to the Classic Car Club of America. They’ve posted a definition of the classic car as anything that’s been manufactured more than thirty years ago. That still leaves a huge market, as many of those cars remain on the road today. But you can’t insure them the same way as new cars. In addition to the age, most owners have spent a ton of man hours returning that classic car to mint condition. That means you’ll need to insure the vehicle based on an agreed value, as opposed to the actual cash value that is ticketed to new vehicles. You’ll come to that agreed value together with the insurance company.
Yet not all insurers will go down this road with you. Most companies will consider this a specialty coverage plan. That’s a different product, and only some companies will offer it. If you pick up the specialty coverage plan, there will also be certain limitations on your use. You won’t be able to drive the car for business purposes, and you’ll have a serious mileage limitation. It’s usually something around 2,500 miles a year. Most classic car owners only take these vehicles out over the weekends, and only during nice weather. So that may not be a problem for you. But you’ll be surprised to find higher premium charges, even with this restrictive service.
You’ll have additional expenses if you want to take your car out and show it off. If you take part in auto shows, your liability policy will have to cover any damage that occurs in that environment. You might spend some amount of time shipping your vehicle on the back of a truck or in a cube, and you’ll need insurance to cover this as well. This isn’t only for classic cars, as the Mustang insurance you bought for the brand new vehicle you want to bring to shows will require the same thing. But it will all add up in a hurry, and leave you paying more for your policy. The good thing is that you are actually getting more protection, even if it means restricting your usage.