If you’ve finally purchased a car to restore, are an avid collector, or by some divine luck have been gifted your dream car; there are a few classic car insurance coverage facts you should know. This is especially important for anyone insuring a classic vehicle for the first time, as coverages often differ quite a bit from a standard policy for your daily driver. As always, if you have any lingering questions after reading this make sure you contact an advisor at The Accel Group.
Types of Vehicles
The definition of vehicle type varies from place to place, but there is a general categorical rule you can apply. Classic vehicles are generally beyond a few decades old like the 1960s Mustang. A vintage vehicle is only a few decades old, such as a 1980s Lambo. Lastly, an antique vehicle will be much closer to the turn-of-the-century like a 1912 Model T. Since these are general guidelines there are a few exceptions. A good example would be the majority of vehicles produced in the 70s and 80s, and aren’t considered rare. These vehicles wouldn’t qualify because the 70s and 80s were decades of mass vehicle production.
Age of Car
An antique vehicle in Iowa is defined as any motor vehicle that was manufactured at least 25 years ago. As you can imagine this is subject to change, where some policies will cover cars under 15 years old if they are considered rare, exotic, or “cherished.”
These restrictions state that your prized classic should not be your primary vehicle, you should own and use at least one other vehicle as your primary use vehicle, and there may be mileage restrictions of about 5,000 miles annually. Now, this may sound a bit extreme but anyone who owns a classic knows the work it takes to keep it in tip-top condition. Not many owners would want to put that many miles on their vehicle, spend hours cleaning it, or spending hundreds to thousands on repairs should something break mechanically. Taking these points into consideration, it really isn’t out of line with how you’d normally intend to use the vehicle.
As the proud owner of a beautiful piece of art on wheels, you already do everything in your power to keep it protected. This makes storage requirements pretty easy for you as they state you must park the vehicle in a simple structure, or one designed specifically for car collections. Simply put, you can’t leave your baby sitting outside.
Policies are not based on an actual cash value, they are based on an agreed value. This leaves you with a decent value range due to the agreed value being based on the make and model of the vehicle.
Thou Shalt not race. This generally refers to not racing or driving on a racetrack.
Types of Coverage
Just like your regular vehicle coverage this depends on the specific type of policy you have. The following features are generally covered under basic policies:
- Roadside assistance
- Traveling coverage
- Auto show medical reimbursement
- Coverage for spare parts
Please feel free to reach out to one of our advisors about your classic car insurance eligibility and policy options.