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Insurance Coverage for the Oldies but Goodies

Written by Michele Wilmonen. Posted in Research Last Updated: 06/29/2016

Classic and antique cars can qualify for different insurance than regular everyday vehicles.

Older cars come in many different conditions. Some owners restore them to better-than-new condition and others look like they need to be stored in a Ziploc bag so they don’t lose anymore parts when they fall off. Other old cars fall in-between the two categories and are just there. The condition of your vehicle will determine exactly what type of insurance is best for you.

Classic Car and Antique Insurance Coverage

Classic cars actually have a special old car insurance of their own. This is due to the age and that some of these cars have been modified or restored to conditions that are better than when they were new. Most classic cars insurance coverages are on a stated value. A stated value is when the owner tells the insurance company the value of the car rather than the insurance company telling the owner.

There are also restrictions placed by the insurance company as to the use and the storage of the vehicle by the owner. If the owner does not comply they no longer qualify for this special category of old car insurance. They will instead have to get insurance coverage for their classic car under a normal car insurance policy which may not protect their car as well as the special classic old car insurance.

Insurance Coverage for Old, But Not Classic or Antique

Insurance coverage for those cars that are not classics, but aren’t junkers yet either depends on you and your financial situation. If your older model car is in good shape and is still retaining a good value, you may want to consider keeping comprehensive and collision coverage on it. There is no reason to go without this coverage if it will benefit you in the event of an accident.

However, keep in mind that your car insurance company is only going to pay out so much on your old car insurance. If the amount that you are paying exceeds the amount that they would pay out if your vehicle was a total loss, drop the comprehensive and collision coverage from your old car insurance. Just like with the junker, put that money in a bank account. Only use this money when you need to pay for damage to your old car or need to buy a new car.

There is just no reason to keep handing the insurance company money for old car insurance if you would be better off financially with paying for any damages yourself.

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Michele Wilmonen

Michele's first introduction to insurance was working for a major insurance company as a file clerk and a mailroom supervisor in a regional office. She learned insurance directly from underwriters and claims adjusters from questions and also watching them do their job. Since then, she's earned a number of insurance certifications from the Insurance Institute of America and also a Bachelor’s degree from the University of Idaho. She blogs at Car Insurance Guidebook.

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