Hello! This is Dan Lyles with Lyles Insurance. And in this video we're going to go over a classic car insurance policy. And why classic car insurance is better than just attaching a classic car onto a regular auto insurance policy.
As far as qualifying for an exclusive classic car insurance policy, it's very easy. There's only three things: Number one, the vehicle must be at least 25 years old (unless it's an exotic vehicle, they'll make exceptions for those). Number two, it can't be a regular everyday use
Vehicle. They do understand you're going to drive a classic car on occasion (parades, car shows, things like that) …. That's fine. What they don't want to see is you using the car every day. And number three, you can't have any serious violations on your driving record. The minor tickets, that's okay. But they don't want to see anything like a reckless op, a DUI, something more serious like that.
Now let's go over the reasons why your classic car should be insured under a classic car insurance policy instead of a regular auto insurance policy.
One of the biggest advantages of classic car insurance is how they value the vehicles compared to regular auto insurance. With classic car insurance, they use what is called “agreed value” coverage. Which means the coverage amount is stated right on your policy. So if you get in an accident, there's not going to be any surprises. You know exactly how much coverage there is. Whereas with a regular auto insurance policy, they go by what's known as “actual cash value” basis, which simply means the market value of your vehicle. And as you can imagine, some classic cars, it can be very difficult to assess a market value to. That's where regular auto insurance companies can short you on the value. So you got to be careful with that. It's always good to have a classic car insurance coverage because of that agreed value.
Another advantage is the zero deductible option. As you know, deductibles are your out-of-pocket expense if you ever have to file a damage claim on your vehicle. Whether it be Comprehensive or Collision. Most auto insurance companies do not offer a zero deductible. They require at least some out-of-pocket expense. Now, there are a few that will, but they
charge a lot of premium for it. Whereas on a classic car insurance policy, zero deductibles are pretty much the standard. And it doesn't save you a lot of money to go with a higher deductible. And that's why zero deductible option will save you a lot of money on a classic car insurance policy if you ever have to file a claim.
This benefit only applies to drivers who own multiple classic or antique cars. But for those of you, this is a money saver. If you've ever noticed on a regular auto insurance policy, if you've ever had more than one vehicle insured on it, you got a liability premium charge for
every vehicle insured on your policy. However with a classic car insurance policy, you only have one liability charge that applies to any car insured on a classic car insurance policy. And again, this is a big money saver.
I can't stress this one enough. If you ever have damage done to your classic vehicle, you're going to have a much better claims experience if your vehicle is insured under a classic car insurance policy than a regular auto insurance policy. And there's two reasons for that. Number one, claims adjustors for classic car insurance companies specialize in repairing classic and antique vehicles. So they know exactly what it takes to repair a classic vehicle properly. Versus regular auto insurance claims adjusters, who have little to no experience handling claims involving classic vehicles. The second reason is just the same. Body shops aren't always equipped to repairing classic vehicles. And with classic car insurance, they give you much more flexibility in choosing body shops.
And finally, something that's going to surprise you, is how the premium can balance out between classic car insurance versus regular car insurance. Remember that on a classic car insurance policy, they only accept the classic cars that only drive occasionally. And because of
the less use, there's less risk, which equals lower premium. And that balances out the fact that there's higher coverage on a classic car policy. So the rates are almost about the same. And in many cases, I've seen where classic car insurance is actually less than regular car insurance, even though it has higher coverage.
I hope this video has given you a better understanding of why it's important to insure your classic vehicle with a classic car insurance policy instead of a regular auto insurance policy. Thank you and have a great day!
Dan Lyles is an Independent Insurance Agent serving Ohio, Indiana, Michigan, Pennsylvania, Virginia and West Virginia..