Differences Between Collector Car Insurance and Car Insurance

Collectors’ car insurance caters to the unique risks and circumstances in the classic car category. On the other hand, traditional car insurance covers any type of vehicle.

Car collectors have an eye for classic, antique, and vintage vehicles. Examples of classic cars include Chevrolet Camaro, Ford Mustang, Dodge Charger, and Cadillac Eldorado.

The inspiration behind collecting these exceptional vehicles includes passion, fun, or diversifying an investment portfolio. Classic cars have extra accessories, special valuation, and use characteristics that necessitate a different risk classification.

If you’re passionate about classic cars, consider acquiring collectors car insurance to protect your investment or passion.

Differences Between Collector Car Insurance and Car Insurance

Qualifications

Car insurance is available to vehicle owners in California regardless of the car’s make, age, model, or type. In addition, it’s open to newer vehicles prone to depreciation and regularly driven older vehicles.

On the contrary, collectors’ car insurance covers vehicles beyond the age limit of 25 years. For instance, classic vehicles, 25 years and above, or antique cars that are 45 years and above. 

Before issuance of the policy, the insurer vets the driver as follows:

1. At least 5-10 years of driving experience
2. No more than one driving infraction in the last 3 years
3. At least 25 years old.
4. Own another vehicle as the primary automobile to and from work

Collectors Vehicle Usage

Collectors’ car insurance is designed for vehicles not meant for primary use. Most car collectors use classic cars for parades, leisure drives, club appearances, and shows. With that in mind, insurers demand proof of an alternative vehicle covered by personal auto insurance.

On the other hand, car insurance doesn’t limit or direct vehicle owners on their use. Instead, car insurance is open to commercial, personal, or leisure use.

Settlement Value

Regular car insurance uses actual loss in determining the settlement value after an accident. The insurer applies pre-loss market value and deducts normal wear and tear and other factors it may deem fit.

The collectors’ car insurance uses the agreed value model where the insurer and vehicle owner settles on a maximum payable value. First, the vehicle owner provides a valuation report based on original value and improvements. Subsequently, the insurer considers depreciation, market value, and current condition to arrive at the agreed value.

Collector Car Insurance is Cheaper

The applicable premiums for classic cars are lower compared to traditional car insurance. First, it has limited use, which reduces exposure to risks. On the other hand, the insurer requires a classic car owner to abide by strict storage restrictions.

Ultimately, most insurers classify classic cars as low risk, which explains the low rates. On the contrary, car insurance covers relatively high-risk vehicles, calling for higher premiums.

Speak to A Dedicated Collector Car Insurance Professional

A sudden rise in demand for a classic car can transform the value of your investment. That said, it pays to keep your classic car protected. At Panorama Insurance Agency Northridge CA, we apply our experience and networks to find the most suitable policy.

Contact us online or call us at 818-797-9896 to get a free quote.