A Classic auto is just a car so why does it get special attention? Well, for most people who have a classic auto, it is their "baby". Think of Tim Allen in the TV show Home Improvement - it was the most important material item in his life!! Insurance companies know how important your classic vehicle is to you and there are special auto policies designed just for classics (and exotics). There are, however, requirements to insure these vehicles but if your vehicles qualifies, your rate is substantially lower than if you insure it on a standard auto policy. The companies that specialize in classics require that most or all of the following be met in order to qualify your vehicle as a classic:
- A Classic Auto is typically defined as a stock vehicle built from the turn of the last century through the 1960's. Some 70s and 80s vehicles can be considered if the vehicle shows a trend of increasing market value and if it is being treated like a collectible by the owner.
- Exotic vehicles are considered collectible cars typically if they are 1987 or newer and less than 3,000 were produced per year. The value of these cars should be over $40,000.
- You must have at least one "regular use" vehicle for each licensed operator in your household (and this includes roommates). For example, if there are 3 licensed operators in your household, you must have 3 vehicles on your automobile policy and the classic auto would be your 4th vehicle. Most companies do not consider motorcycles or company vehicles as a regular use vehicles.
- The classic vehicle must be secured in a locked facility - no exceptions.
- Some companies limit annual mileage on this vehicle to less than 2500/year. Many collectors drive these vehicles less than 500 miles/year.
- The usage of these vehicles must be "limited" - that means that it can NEVER be used for normal or backup transportation such as driving to work, school, or running errands. Typically it is used for car shows, parades, club events and the "Sunday afternoon drive."
- The company requires a copy of your personal auto policy showing the regular use vehicles in the household. The coverage on the classic auto cannot be higher than on your regular use autos.
- The premium is determined by the value of your car as a classic or exotic vehicle. It helps to have an appraisal or at least comparable values from a collectible car magazine.