The differences between traditional auto insurance and collector car insurance may seem subtle, but there are a few that are extremely important for those who invest a lot love, time, and money on their cars. For one, a collector car insurance policy is a specialty insurance policy – one that requires both you, the driver, and your collector vehicle, to qualify and meet a specific criteria.
How do you know if you both qualify? Simply check out the following requirements:
Qualifications for the Driver
For the most part, drivers who already have auto insurance for their daily driver will qualify for classic or collector car insurance, provided that they have all the following:
- Clean driving record for the past six years.
- Sufficient driving experience, typically 10 years or more.
- Proof of insurance on a vehicle that will serve as a daily driver. This guarantees that you will not use your collector vehicle to handle those day-to-day duties.
Qualifications for the Collector Car
Different insurance providers will have different requirements for vehicles to qualify for collector car insurance. Plus, it is also important to note that there are different types of collector vehicles with their own specific qualification criteria. For example, some insist that a classic and antique collector vehicles must be 25 years or older, while others accept 15 as the required minimum age.
Rarity is one of the other requirements for collector car coverage. Vehicles with limited production numbers might qualify due to their rarity and desirability alone. If you are unsure about your collector vehicle, refer to our list of ones that do not qualify for coverage. As long as your vehicle isn’t listed there, you good to go!
Limitations on Vehicle Usage
Assuming that both you and your collector vehicle have qualified for this specialty insurance coverage, let’s now talk about usage limitations. Almost all collector car insurance policies place specific limitations on what you can do with your car. While these limitations may vary from one policy to the next, they almost universally include the following requirements:
- Cars cannot be used in racing or timed events. (If you want to race your collector vehicle, consult our Finish Line Race Car Insurance page for more details).
- Cars cannot be used as daily drivers
- Cars cannot be used in performance competitions.
While this is a hobby car that is meant to be used and enjoyed, the events above expose the vehicle to unnecessary risk. You may use your car in cruise events, parades (in most cases), and car shows, however.
In terms of who can drive this collector car, in many instances, it is only the insured driver or those specifically listed on the policy. If you have kids who do not meet the driver qualifications from earlier, you may have to fill out a form and exclude them from your policy.
Storage and Transportation Requirements
Most policies require collector cars be stored in a dedicated garage space when at home and may have specific requirements related to transporting them. For instance, they may only allow for emergency roadside services that guarantee a flatbed, full-service dispatch, lock-outs, battery jumps, and more.
Understanding Collector Car Insurance Premiums
There are a number of factors that help determine collector car insurance premiums. For instance, the value of the vehicle, your driving history and experience, along with the general risk associated with these types of vehicles, they all add up to a certain premium.
So, it is still surprising to some people when they learn that the cost of their collector car insurance policy is a fraction of their regular home and auto policies. Why is that? Well, collector cars are “collector” items: they are valued possessions that owners take special care of. And as mentioned earlier, these vehicles are not to be driven as daily drivers or be driven by someone with a poor driving record. These factors alone significantly reduce the risk of potential accidents and they, in turn, help reduce the cost of insurance.
It makes sense, doesn’t it? The more steps owners and insurance companies take to protect collector cars, the greater the likelihood of affordable insurance rates.
In terms of valuation, collector cars don’t have an “actual cash value (ACV)” like regular daily drivers. The ACV formula factors in the initial purchase price of the vehicle, along with the depreciation based on its age. This doesn’t work for classic and collector cars as they tend to appreciate in value over time, so, instead, insurers often offer a “guaranteed value” coverage for these types of vehicles. Some drivers also require additional coverage for costly replacement parts and modifications.
Special Coverages Designed for Collector Cars
Collector cars present unique challenges for their owners. The following types of coverages have been specially created to address those unique needs:
- Guaranteed value (also referred to as agreed value) protection
- Coverage for spare parts
- Coverage for car covers
- Instant protection, up to 14 days on new vehicle purchases
- Waived deductible for auto glass repairs
These are the types of coverages included on all Wayfarer collector car policies. Optional add-on coverages are also available in the form of:
- Specifically designed roadside service for collector car driers
- “Cherished” salvage protection that lets you retain ownership of the vehicle, even in the event of a total loss
- Evacuation coverage to assist with expenses related to emergency evacuations for your classic car
- Special endorsement for vehicles under construction. This coverage consistently raises the value of your insurance protection to accommodate the work being done to the vehicle