The Difference Between Classic Car Insurance and Standard Auto Insurance

You might wonder why you need classic car insurance when your other vehicles carry a standard auto insurance policy from Vargas & Vargas Insurance. Your classic car requires a different level of insurance coverage than your other vehicles.

You could wreck your 2020 Chrysler or Dodge in Dorchester, MA, pick up a check from the insurance company, and purchase a new 2020 Chrysler or Dodge from the car lot. That is not the case with a classic car.

If you wreck a completely restored 1963 candy apple red Corvette Stingray, you cannot drive to the Chevy lot and buy a new one. You would have a hard time replacing it.

You also would receive a different amount of money for the new car and the classic car. With auto insurance, your payout would come in the form of a depreciated value. You would get the Blue Book value of your car or truck on the day the accident occurred. You would not want this with a classic car. The depreciated value of a 1963 Corvette is not the same thing as the actual value of the same car when completely restored to pristine condition.

Classic car insurance pays actual value or agreed-upon value. That means you either obtain the actual cost of purchasing another mint 1963 Corvette or you get a check for the value of the vehicle as you and your insurance company agreed to it when you negotiated the insurance policy.

With classic car insurance, you do not get to drive your vehicle as often. The policy typically limits you to about 1,000 miles per year. You can show it in car shows and drive it in parades.

Choosing classic car insurance saves you money if your vehicle ever incurs damage. Contact Vargas and Vargas Insurance of Dorchester, MA to learn more about classic car insurance.