When it comes to cars, it’s hard to beat the classics. There are a number of popular classic cars, from the Chevy Camaros and Ford Mustangs of the 1960s, to the classic cars of the 1950s, including the Chrysler D’Elegance and the Oldsmobile F-88. And, of course, it’s impossible not to harbor a soft spot for cars like the 1941 Chrysler Thunderbolt and the futuristic 1954 Pontiac Bonneville Special.

Your classic car needs protection, though. A lot of love – and money – often goes into restoring classic cars, and it’s important to make sure that you purchase the right insurance for your baby.

Specialty Car Insurance vs. Standard Car Insurance

Insuring a classic or specialty car via standard car insurance can be a bit expensive. Many “regular” insurance companies charge higher premiums to cover classic cars. If you are hoping for a better rate, it is possible to consider a specialty car insurance policy.

A specialty car insurance policy can cover your classic car, and provide you with a less restrictive policy. Shop around, and make sure you include specialty insurance policies in your calculations. One of the best reasons to consider specialty car insurance for your classic car is that those handling the claims know more about collector vehicles and classic cars. A knowledgeable insurer can be worth a great deal more than any premium you pay.

Choosing Your Classic Car Coverage

Often, owners of classic cars have special needs. As you shop around for auto insurance coverage, choose a company that covers the following situations:

• Damage resulting from car shows
• Liability coverage while you attend club events
• The ability to use your own mechanic for repairs to your classic car
• Coverage while the car is restored
• Coverage during transport if you have the car shipped (make sure this includes overseas shipping, as well as state-to-state shipping)

You can also look for a certain flexibility in the premiums, based on how many miles the car is actually driven. If you don’t drive your classic car very much, you might be able to negotiate a slightly lower rate on your premiums.

Another thing to pay attention to is how your classic car is covered if a total loss is involved. When it comes to classic cars, there are three different terms used to determine the insurance payout:

1. Actual Cash Value (ACV): Watch out for this coverage, since it usually bases the payout on the same formula used for “regular” cars, and involves a depreciated book value. Your classic car might just be classified as “old” in this case, and you wouldn’t receive what you think it is worth.
2. Stated Value: Another option is to negotiate a payout based on stated value. This is often used in the case of collectibles, and your classic car might qualify. You state the value of the car, and that is the payout. However, you should re-evaluate regularly when you use this method, since it won’t account for appreciation in the value of your classic car.
3. Agreed Value: This is the best policy if you are looking to get all of your money back. This process involves agreeing on what your classic car is “worth.”

Carefully consider your insurance options, and be picky. You want to make sure that your classic car investment is properly protected.