Owning a classic car, or a fleet of classic cars is a lifelong dream for many car lovers. When the day comes to take your classic car for a joy ride, you’ll want to make sure your investment is protected. At Petra, we have a deep appreciation for exotic, luxury, and antique cars. We understand that not only are these vehicles a significant investment, they are also a source of great pride for collectors. Our love for cars and their owners drives our team to provide the best classic car policies to protect your investment.
Classic car insurance is specifically designed to cover higher valued cars and trucks 20 years and older. This category of cars can include high-value collectable cars, antique trucks, and luxury SUVs, as well as sports cars that require special protection compared to regular or standard vehicles.
What is a Classic Car?
If you have an antique or classic car, you need to protect it with the proper insurance. Classic car insurance is a special type of insurance policy that helps protect antique, classic, exotic, and luxury vehicles. While definitions of a classic car can vary, most insurance companies recognize a car or truck as a classic when it’s at least 25 years old.
As a general rule, if a car’s value exceeds its original selling price then it may be considered a collectible or classic. Classic car policies can also help protect other high-value vehicles such as muscle cars, hot rods, vintage military vehicles, and exotic or luxury cars.
What Does Classic Car Insurance Cover?
While both standard and classic insurance policies protect the driver and their vehicle in the event of accidental damage, classic car policies provide more comprehensive coverage for your higher valued and collector vehicles. It also typically includes protection and conditions similar to a standard car insurance policy, including comprehensive, collision, bodily injury, and property damage.
However, unlike traditional vehicles, which are insured based on the actual cash value of the car (factoring in depreciation), classic car insurance covers the vehicle for an amount that’s agreed upon by the owner and the insurer. Additionally, as the value of your car increases over time, you can adjust your policy to reflect the increased value.
Classic car policies can help pay for restoration or customized repairs if your antique car is damaged. In some cases, it can even cover the costs associated with replacing classic parts, such as wheels and engine components.
Classic car insurance typically includes coverage for:
- Uninsured/underinsured motorists
- Bodily injury
- Property damage
- Roadside assistance
- Auto show medical reimbursement (which covers injuries sustained during an event or exhibit)
- No attendance required (which provides protection when you are away from your vehicle or it is on display)
- Restoration or spare parts
- Ability to increase coverage as the value of your car increases over time
Does it Cost More to Insure a Classic Car or a Standard Car?
In most cases, insurance policies for collectible vehicles are almost always less expensive than standard automobile insurance. How can this be? Lower costs are due to the fact that you typically drive your antique car less frequently than your standard vehicle, and that you are more likely to keep your antique car sheltered and in pristine condition. Ultimately, classic car insurance premiums are calculated based on standard industry factors, such as the make, model, age, and condition of your vehicle.
What Do I Need to Know About Classic Car Insurance?
Classic car insurance is designed to meet the specific needs of collector car ownership, which are often different compared to standard car ownership. In particular, classic car policies allow you to increase your coverage as the value of your car increases over time. This type of policy also considers specialized repairs and parts needed in the event of damage, as such parts will likely be more expensive than standard vehicle repairs.
Classic car policies often require that the car not be used as the primary driving vehicle. They can also place a maximum annual mileage restriction on its use. However, this is not a problem as most drivers use their classic car for pleasure driving, as a hobby, or for parades and antique car shows.
Typically, drivers need to meet the following criteria to qualify for classic car insurance:
- At least 30 years old
- Valid driver’s license
- A great driving record with at least five to ten years of experience
- Zero violation or at-fault accident in the past three years
- Store your car in a fully enclosed garage, carport, or storage facility
- Own and use another vehicle as your main source of transportation
- Own a vehicle that is in good condition
Petra Classic Car Insurance
You’ve worked hard to locate and purchase your luxury vehicle. The best way to protect your interests is to invest in comprehensive classic car insurance. As Dubai’s premier classic car insurers, we’ll not only protect your financial investment, but we’ll also ensure your coverage increases as the value of your car increases over time.
If you are interested in learning more about what auto insurance policy best suits your needs, contact a member of our team to learn more.