You might have thought all car insurance policies were similar. But insuring an old car isn’t necessarily the same as insuring a brand new make and model.
Perhaps you’ve been repairing your older vehicle for years or you’re a mechanic who enjoys working out the small fixes. Maybe the car still works exceptionally well with a little extra TLC. Now that the car’s tied to countless irreplaceable memories, why would you get rid of it?
You don’t have to, but you do have to find necessary car insurance. You’ve probably heard or seen advertisements from car insurance companies that focus on specialized older vehicles and maybe you’ve wondered if that’s the most valuable option. First, let’s start with the basics.
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Classic Car vs. Old Car
Do you know what your vehicle classifies as? Just because your car is older doesn’t necessarily mean that it’s considered a classic automobile. Typically, classic car insurance does not cover cars that are operated with daily-use due to increased risk. If you own an older vehicle that is your primary source of transportation, then classic car insurance may not be for you.
Furthermore, classic auto insurance typically has a mileage limit. If you’re planning on taking your older car on long trips than typical auto insurance may be a better option for you.
Every car insurance company has different requirements for what is considered a classic car. Sometimes, any vehicle older than 10 years classifies while others may only offer protection for cars considered antique or vintage, with a make prior to 1950. Usually with classic car insurance, you agree on the set worth of your vehicle when you buy your policy. If you think your car might fit the requirements, find out more information here.
How Much Coverage Do You Need?
If your car is not a classic, then it is reasonable to consider just how much coverage you truly need.
- Take your deductible into account.
How high is your insurance deductible? Typically, the more you increase your deductible, the less expensive the insurance policy. If you know that your older car only has so many miles left, consider raising your deductible so you can pay less. This can be a great way to save money for a future vehicle.
- Don’t over insure your car.
There is such thing as over insuring. If your car would cost more money to fix than what insurers consider it is worth, then paying for collision or comprehensive coverage is likely a waste of money. Remember, these two types of coverage are there in case of damages. If your car is in an accident and totaled, collision coverage either pays to fix your car or reimburses you with the car’s perceived worth. Comprehensive coverage provides protection in case of floods, falling trees, or storm damage. However, if you’re insurer considers your car only to be worth $4,000, and your deductible is high, then you may be better off trading in those protection options for a policy that meets the minimum insurance requirements.
- Know your state’s liability requirements.
It’s important to know your state’s requirements. The older your car, typically the more cost effective it is to purchase a minimal coverage policy. Be sure you have adequate liability requirements and go from there.
- Be aware of the car’s features.
In some cases, older cars can have more affordable insurance if it’s easy to find replaceable parts. If your older car also has modern features like airbags or a strong anti-theft system than that can get you an additional policy discount.
We know that there’s intrinsic value that comes along with owning an older car. Choosing which auto insurance policy is right for you isn’t always an easy task. Try to research your options today to find one that meets your needs and your budget.