If you recently bought your dream vintage car, you’re probably looking forward to taking it out for a spin or displaying it at a classic car exhibition. Alternatively, you may be eyeing several vintage options while saving up to buy one, or spending your free time lovingly restoring your car to its former glory.
If you need help buying a vintage car or affording repairs and ongoing maintenance, a classic car loan could provide you with the cash you need with fixed monthly payments. Knowing what you owe every month over the life of the loan could help you budget for the cost more easily.
No matter where you are in the process of owning a vintage car, one question on your mind might be how to protect your vehicle and estimate the cost of insurance. Keep reading to learn how to choose the right insurance policy for your car and your budget.
What makes a vehicle eligible for classic car insurance?
So, what do insurance providers consider a classic or vintage car? While exact requirements may vary between insurance companies, your car will likely need to check at least some of the following boxes to be eligible:1,2
· The car is old enough or rare enough. Some providers define a car that is at least 10 years old as a classic car and 25 years old as an antique car. Other insurers are more focused on a classic car’s specific features, such as the year the vehicle was made, whether it’s a limited model or if it has special historic significance.
· The car isn’t used as an everyday car. You don’t plan on driving the car very often and will have relatively low mileage. You own another car that you use for errands and commuting, while your vintage car is mainly for fun.
· The car is maintained and stored properly. The car is well cared for and kept in a garage or climate-controlled space.
Additionally, most insurance providers will want to make sure you’re a responsible driver with as close to a spotless driving record as possible.3
What does classic car insurance cover?
Vintage car insurance typically includes coverage similar to that of any other car, such as collision, in case of damage from an accident, or comprehensive, in case of theft. But because many classic cars are collector’s items, you can usually add special coverage to your car insurance. For example, if you plan on taking your car to parades or car shows, you might want to look into additional medical or injury insurance.4 Or, if certain parts of your car have specific historical or cultural significance, such as the license plate or ornamentation, you can add what’s known as “automobilia” coverage.5
What is the cost of insuring a vintage car?
Insurance coverage for a vintage or classic car is typically not as expensive as the policy for your everyday car, in part because you likely won’t be driving it as often. Using the car less frequently reduces the chance you might need to make a claim for an accident, for example.6 The average classic car policy is between $200 and $600 per year, but it really depends on a range of factors, including the value of your vehicle.7
When deciding to approve you, the insurance company will take your age, driving record, credit score and the appraised value of the car into account, among other things. It’s a good idea to shop around and get quotes from different providers to get a better idea of what type of coverage you qualify for and how much it will cost.
Protect your dream car for years to come
Once you’ve invested in buying or fixing up a vintage car, you’ll want to take care of it for as long as possible. Researching different insurance types and providers, estimating how much it may cost and deciding if the cost fits into your overall budget are important steps to finding the right policy for you.
Shopping around, seeing what sort of coverage is available for your car and asking for quotes from different insurers is a helpful way to compare plans and estimate the cost.
While you may not drive your vintage car every day, knowing you have the right coverage in place may give you peace of mind to enjoy it to the fullest.
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