Classic Mistake: Avoid Paying too Much for Car Insurance

Classic Mistake_ Avoid Paying to Much for Car InsuranceClassic muscle cars from the 1950s, roadsters from the 1960s and rare luxury Porsches from the 1970s and 1980s are fast becoming prized possessions by car collectors all over the world.

Many baby boomers are looking at unique, pristine classic cars for prestige, fun and excitement.

Owning one of these beautiful cars or two takes money to operate and insure, so it’s important to consider some classic car buying tips.

Being patient and flexible, avoiding Craigslist and knowing what you want are helpful guidelines.

It’s equally crucial to know the steps involved in insuring your purchase. If you have to finance the car purchase, or cannot afford the type of insurance policy required, then it may not be a good idea to get that particular classic car.

But for those who can, here are a few simple tips to insuring your new grown-up toy:

How Much Insurance is Necessary?

This depends on the type of car you buy and how often you drive it. If you’re a weekend driver, showing off your prized possession at a special car show or two, then you’ll likely need only a small amount of insurance. You might be able to find an insurance policy for a couple hundred dollars per year. But if you plan to drive it more often than just weekends, then get ready to pay a much higher premium.

What Type of Insurance is Needed?

Search online for reputable insurance companies with easy-to-navigate Web pages to find accurate policy quotes. Car insurance policies may contain several types of coverage, including:

Personal injury protection

Covers medical expenses for an insured driver, even if the driver is at fault for the accident. Some states do not require this type of coverage, but if you drive your classic car often, it’s recommended.


Covers other people who are injured, or their families who may enter a claim for a death as a result of an accident. Liability also covers pain and suffering for others injured in an accident and covers lost wages.

Property damage liability

Covers damage to others’ properties as a result of an accident. Many insurance companies require you to have property damage liability.

Collision insurance

Covers your vehicle after an accident, or if another vehicle or object damages your car.

Comprehensive insurance

Covers damages to a vehicle from incidents other than a car accident. This could include fire, hail, wind, theft, flood and vandalism. If you have an expensive classic car, you may wish to increase the comprehensive limits on your policy. The medical coverage portion of the policy covers medical expenses, regardless of fault.

Underinsured motorist coverage

Covers you for a specific amount if someone who doesn’t have enough insurance causes an accident. Uninsured motorist coverage covers your vehicle if the person at fault doesn’t have insurance.

Depending on your state’s laws, you may be required to have some or all of the listed types of coverage.  It’s sometimes advised to get additional personal liability insurance such as umbrella policy to cover any shortfalls. If your vehicle appraisal garners a significant value, it is best to get enough insurance to cover it. Even if you don’t drive the vehicle often, comprehensive insurance will cover a fire or other damage that may happen to the vehicle while sitting in a garage.

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