Do You Need Classic Car Insurance?

Collecting classic cars is popular in New Hampshire. All around the state, there are hundreds of automobile shows, parades and performances during the sunny days of the spring, warm nights of summer, and cool weekends of autumn. When it comes to protecting these antique automobiles, a common question that is often answered incorrectly is: “What type of insurance coverage do I need on my classic car?” Many drivers feel that adding their classic car onto their daily driver’s auto insurance policy is the answer, but that typically will not provide you with the proper coverage. Instead, it’s best to protect your collector car with classic car insurance, which takes the unique needs of the car collector into consideration. The most important distinction between typical auto insurance and classic car insurance is in the valuation of the vehicles. Your typical auto insurance policy offers actual cash value (ACV) protection and, with standard depreciation rates, each year your car gets older, the less that value becomes. If after five years of driving, you experience a total loss with your five-year-old automobile, you would receive the original value of the automobile minus five full years of depreciation, which we all know is going to be a significant drop in value. On the other hand, classic car insurance offers a type of valuation called agreed value. This type of valuation allows you and your insurance provider to agree upfront on the insured value of your classic car. Therefore, in the event of a loss, you are guaranteed to receive this agreed value; no lesser value or depreciation is considered. Different providers have different...