You may believe that buying car insurance for an older vehicle is less expensive, but this is not always the case. There are no discounts available simply because you drive an older vehicle. When looking for the best way to insure an older car, think about it the same way you would when choosing a standard insurance policy, taking into account both your own needs and the laws of your state. We'll go over the various factors at play and why your car's age isn't one of them.
Important Points to Remember
- While older cars may require specialized insurance, it does not always cost more than insuring a newer vehicle. In many cases, it may be less expensive.
- Don't think your car needs classic car insurance just because it's old. There are certain features that determine whether a car is "classic."
- Parts and repairs for classic cars can be expensive, but they may not be in line with the premiums you pay.
- Extra coverages may be worth the higher monthly cost, but you should weigh all of the risks before enrolling when it comes to a classic car.
Is Your Automobile a "Classic"?
The insurance industry has a high standard for what qualifies as a classic car, so your beloved 1980s hot rod that you've driven into the ground might not make the cut. When one thinks of a "classic" car, one imagines a vehicle that gets a lot of attention (possibly the envy of collectors), is kept in a garage (or another secure location), is driven infrequently (even then only by very careful drivers), and is not used as your primary mode of transportation. To put it another way, it's a car you own more for show than for practical use.Owning a Classic Car Comes with Risks
Is it risky to drive your classic car despite its high value and high replacement cost? To put it another way, how does it compare in terms of risk to other cars on the road? Because it isn't driven very often and is kept locked up the majority of the time, it spends very little time on the road, which is to your advantage. What about the possibility of theft? If your car is kept in a garage at home, there's a chance, but it's small. You can see why your car's age and value are only two pieces of the puzzle now. These other factors, which limit exposure to the risk of damage, balance the risk of insuring the value of a classic car.How Much Does an Older Car Cost to Insure?
When most people consider how much it would cost to insure an older car, the first thing that comes to mind is the monthly payment they would make to an insurance company. While this is by no means the only factor to consider, it is at the forefront of most people's minds and is worth investigating. The simple answer is that car insurance premiums do not go down or up just because a car is older. There isn't much of a link between the car's age and how much it costs to insure it on a monthly basis. If you want to lower your monthly payment, you can always adjust your coverage levels. Simply put, premiums are higher when your car is at a higher risk of being stolen. For example, suppose you own a car that thieves adore. Perhaps you're a risky driver, or perhaps your vehicle lacks the best and most up-to-date safety and anti-theft features. Because older cars are more likely to fall into some of these categories, your premiums may be higher for any of these reasons, not just because your car is older. The rest of the factors that go into determining the cost of your insurance, such as your age, location, and driving history, will have an impact on rates for both old and new cars. Tip: If you're willing to put in the extra effort, there may be hidden ways to reduce your auto insurance premium that aren't always obvious, such as paying in bulk or qualifying for good driver discounts.Repair Costs and Parts Availability
If you have owned a car for a long time, there's a good chance you'll have to repair it at some point. If you own an older vehicle, your chances are even better. If you need to make a repair on your car and it's an older model, you'll probably have a harder time finding the right parts than if it's a newer model. They may even cease to be produced on a regular basis. When parts are found, they may need to be special ordered, shipped from a distant retail store (or private owner), or discovered in a salvage scrap yard. For all of these reasons, older parts can be quite expensive if you can find them. Repair costs are an important part of any prudent car budget, particularly for an older vehicle.Coverage for Comprehensive and Collision
In many cases, purchasing comprehensive collision coverage is a good idea for most drivers. It's debatable whether they'll meet the needs of your older vehicle. To begin, it's critical to understand how they differ and what each cover. Comprehensive insurance covers repairs to your car caused by a variety of events beyond your control but no collisions. Consider the following scenarios: theft, inclement weather, a cracked windshield, or a deer darting across the road. Collision insurance pays for any damage to your car that occurs as a result of a collision. There are numerous nuances to each, but this is a general outline.Is the Additional Coverage Really Necessary?
Dropping coverages from your policy can help you save money on your premiums quickly. Collision coverage only applies if you cause a collision with another vehicle, a pole, a tree, or a railing. If you crash and damage your car, the less money you will likely get back, the older it is. Dropping this coverage is almost always a good idea if you're a safe driver and have enough money set aside to replace (not repair) your car, but if you're prone to accidents or short on cash, it might be better not to. Dropping this coverage is not an option if you're still paying off your car loan. Comprehensive coverage is more of a bonus, but if you don't have it, you won't be able to protect yourself against a wide range of different types of damage that come with a wide range of costs. Warning: Some states require drivers to have both comprehensive and collision coverage (or one of the two), so check your state's laws before making any drastic decisions.What to Look for When Choosing a Policy
You might expect to pay a lot if your car is truly an antique, but that isn't always the case with antique auto insurance. Because policies must be tailored to your car's specific needs, according to Progressive data, classic cars cost about 36% less to insure than a typical modern car.Pay no more than is necessary
Prepare the groundwork to ensure you have coverage that meets your car's needs while not costing you a fortune. Get the most comprehensive coverage you can afford and consult with a reputable advisor. When it comes to classic cars, you're not dealing with something that can be easily (or inexpensively) replaced, so finding the best policy is crucial. Grundy Worldwide, Hagerty Insurance Agency, and Heacock Classic are just a few of the classic car insurance companies. Traditional insurers such as Hartford, Farmers, Allstate, Geico, and their partners offer classic car insurance.