Image via Flickr by A S Morton
You probably don’t use your classic car the same way you use your regular car, which means you don’t insure it the same way either. Classic cars don’t make those commutes to work day in and day out, and it’s not the vehicle that you pile the kids into when you need to run errands. This difference in usage means that it needs different insurance coverage with unique features designed to protect you and your investment. Geico is a top insurance company with classic car insurance. Take a look at how it works.
What Makes a Car a Classic?
In most cases, there are several factors that insurance companies use to define a car as a classic. Many people think age is the single determining factor, but there is more to it than that. You should consider purchasing classic car insurance if you have a car, motorcycle, or truck that is collectible, has a historical quality, or is a limited production model. Each company that offers classic car insurance has its own guidelines for determining a classic car.
According to Geico, if your vehicle meets the following requirements, you can purchase a classic car insurance policy:
- It is 25 years old.
- It is over 20 years old and has collectible value.
- It’s not used for racing.
- It’s used for limited on-road miles.
- You store it in a climate-controlled garage or a garage that’s kept fully closed.
- You purchase a new exotic car such as a Lotus, Bentley, or Ferrari that you don’t use on a daily basis.
- It’s used only for exhibitions, occasional pleasure driving, and auto club activities.
- You purchase a common antique such as a Ford or Dodge pickup, or Chevy Impala.
- You purchase a new replica car.
- You purchase a classic fire truck, military vehicle, or something similar.
If you have a vehicle that fits one or more of these requirements, you should call Geico about their classic car insurance. They partner with American Modern Insurance Group or Assurant to provide policies designed specifically for classic cars.
Why Get a Special Classic Car Policy Instead of a Regular Policy?
Classic car insurance is unique because it will take into consideration the cost of replacing hard-to-find parts. It’s also designed to cover the substantial investment buyers make in a collectible or classic car.
Purchasing Geico classic car insurance is slightly different from purchasing a regular policy, although the process is the same. Some of the differences you’ll find with classic car insurance include:
- No appraisal
- Low deductibles
- Covered at its Agreed Value
What is Agreed Value? This means there is no depreciation over time. Unlike regular cars that depreciate over time, classic cars don’t lose value as they age. Antique vehicles will usually either maintain their value or even gain value as they get older. If you total your collectible, Geico will pay the amount the vehicle was worth when you purchased the policy.
The agreed value is usually based on industry guidelines, and Geico will review the value with you when your policy comes up for renewal. If it’s determined that your classic car gained value, you can adjust the agreed value and pay the premiums that correspond to the higher value.
Some other types of coverages you can get for a classic car include:
- Tiered mileage plans
- Spare parts coverage
- Auto show medical
- Worldwide coverage
How Do I Get Coverage For My Classic Car?
It’s easy to get Geico classic car insurance. You can call a service agent, go to the Geico website, or use the app to apply for coverage. You’ll need to provide information about the car you want to cover. You’ll need to provide proof of its age, garage housing, and status as a pleasure car. You’ll also have to prove that your car is a vintage model. Keep in mind that old does not necessarily mean vintage.
It’s a good idea to have a separate policy for your classic car instead of adding it to your regular policy because you’ll get cheaper rates. When you purchase a classic car policy, Geico assumes you have another policy to cover your regular vehicle since very few collectibles are used as a primary vehicle.
What Does Geico Classic Car Insurance Cover?
A classic car insurance policy provides the same type of coverage you get with a regular car insurance policy. The policy can have:
- Liability coverage
- Personal injury coverage
- Medical payment coverage
- Uninsured and underinsured motorist coverage
Geico classic car insurance policies also provide up to $500 for spare parts, and you can add more spare part coverage for an additional cost. Coverage for automobile memorabilia, such as collector’s license plates and special hood ornaments, can be added to your Geico policy.
Some additional coverage highlights you’ll benefit from with a Geico classic car insurance policy through American Modern Insurance Group include deductible options that range from $0 to $10,000, flexible payment plans, and coverage that includes usage for parades, car shows, and car club exhibitions.
How Much Does Classic Car Insurance Cost?
Geico classic car insurance is usually cheaper than your regular insurance. The average cost ranges from $200 to $600 a year unless you have an extra expensive vehicle such as a Bentley. These will have higher premium rates because they will cost more to repair or replace, and the parts are more expensive.
The rates for classic car insurance are significantly lower than for regular insurance because Geico and other insurers expect that the owners drive the vehicles infrequently, maintain them better than their regular vehicles, and keep them secure. Because of these factors, the policyholders are much less likely to file a claim.
If you have a classic car or collectible, call Geico to find out more about policies they offer to protect it. You can also get information about recommended repair shops that have the knowledge and training to repair classics and collectibles.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.