If you have a valuable collection, like coins or artwork, most insurance companies will require you to purchase additional coverage to protect your valuables. Auto insurance is the same way, and owners of collectible cars require additional insurance to cover their unique needs.
Most insurance companies require vehicles to meet certain criteria for them to be considered collectible, including some or all of the following, according to the Insurance Information Institute:
- The car must be a certain age.
- The car must be stored in a locked, enclosed structure like a garage or rental storage unit when not in use.
- In most cases, the car must be in excellent condition. Some insurers will deny coverage for cars that have too many miles, damage or extensive wear.
- The car must not be used on a regular basis and be driven only for special occasions, car club events and limited pleasure driving. Most policies will cover only collectible cars that are driven less than 5,000 miles a year. For example, specialty auto insurance company Hagerty requires a driver to show proof of an additional vehicle for daily driving.
An insurer also will want to make sure you have a clean driving record. Because collectible cars typically are more expensive to repair or replace, a driving record free of major violations is a must for most insurance companies. Hagerty, for example, will waive minor traffic violations — but drivers with serious infractions, like drunken driving, speeding and reckless driving, in the past five years generally won’t qualify for its coverage.
Collectible cars have unique needs when it comes to insurance. When looking for collectible car insurance, consider the following coverage options:
- Agreed value coverage. This type of coverage ensures you will be paid the full amount of the car’s collector value listed in the policy, according to American Collectors Insurance, which covers collectible items, such as cars and dolls.
- Inflation guard protection. Unlike regular cars, which depreciate rapidly, collector cars often increase in value over time. Offered by American Collectors Insurance, this part of the policy automatically increases the coverage amount collectible cars up to 8 percent annually.
You also should purchase collision coverage and comprehensive coverage, which protects cars against non-collision-related incidents like vandalism, hail damage or fire.
Collectible cars are a considerable investment of time and money. As a collectible car owner, be sure to get auto insurance coverage that protects your investment so that it can be enjoyed by the next generation.