Classic Cars: Getting the Right Coverage
Classic, vintage and collector cars are a booming market for aficionados of all ages. Hagerty Group estimates there are about 31 million collector cars in the U.S. today. Although most cars lose value immediately after they are driven off the dealer lot, classic cars gain in value over time because of rarity, performance or special attributes, all of which require special insurance coverage. At WRC Agency, we can assist your clients with their collector car coverage needs.
WRC Agency has several markets available to ensure your clients have coverage for their collector, classic and antique vehicles.
To download the collector vehicle application, log in to our secure site, then go to Documents > Personal Lines > Auto. Then gather the following information and submit to wrcagency@thewrcgroup.com to obtain a competitive quote:
- Photos of the vehicle showing all four sides
- Where the vehicle is garaged
- If the vehicle will be licensed as an antique or collector vehicle
- If the vehicle will be used for pleasure or strictly for car shows
Many of our underwriters are requesting photos of the vehicle and its garaging location for quoting purposes, so gathering this documentation up front will help speed up the application process.
Classic, Vintage and Collector Car Definitions
What’s the difference between classic, vintage and collector cars? The general rules for distinguishing classic, antique and vintage cars are:
- Usually, to have the title of a classic car, the vehicle will need to be at least 20 years old.
- Antique cars are over 45 years old.
- Vintage cars were built between 1919 and 1930.
However, as with many details in the motoring world, it is difficult for everyone to agree on a set definition. State departments of motor vehicles, insurance companies and classic car clubs classify each one differently. And some classifications even overlap between classics and antiques.
There is a very broad classification of what a “classic” car is, and some states do not actually differentiate between classics, vintage and antique cars. However, it is mostly dependent upon the age of the vehicle.
Classic Car Insurance
Classic car insurance (or collector car insurance) is different than regular auto insurance. It is created by passionate enthusiasts for collectors to protect their classic cars. Some of these differences are:
- Agreed Value Policy: A classic car insurance policy is generally based on the “agreed value,” so you will know your vehicle’s value if involved in a total loss before the claim occurs. On a regular/standard auto insurance policy, your car’s value is generally determined after the claim occurs and is usually based on factory-installed equipment.
- Low Deductible Options: Collector car insurers typically have much lower deductible options available for your classic car policy (e.g., $0, $100 or $250) than are available from regular auto insurance companies.
- Restored Classic Car vs. An Unrestored Car: Many collector car owners make substantial investments to personalize, preserve, restore and improve their car so that it is different (and more drivable) than when it left the factory. In general, unless vehicle upgrades have been previously disclosed and endorsed onto a regular auto policy, most standard/regular auto insurers limit their claim repair scope and the value of their settlement offer on “total loss claims” to original equipment that was installed on the vehicle at the factory. This means that if you insure your vehicle on a regular auto insurance policy, you may be unpleasantly surprised at the settlement offer you receive on your nicely restored classic car after a total loss claim.
- Specialized Claims Adjusters: Classic car adjusters have the experience, skill and specialized knowledge to adjust a classic car insurance claim accurately. Knowledgeable adjusters tend to adjust claims right the first time, leading to fewer supplemental payment requests and resulting in higher customer claims satisfaction.
Let us help get your clients covered.