classic car insurance nj

Classic car Insurance in New Jersey for First-Time Owners

Whether you own a 1923 original Model T or a 1994 Ford Mustang SVT Cobra, you would want to do everything you can to protect your investment to ensure more years of fun and enjoyment with your prized collector cars. And proper maintenance of a collector car includes having the right insurance for classic cars in place. Because when it comes to vintage vehicles, conventional auto insurance cannot keep pace with these street legends.

Let’s take a look under the hood at how classics are defined, qualifying for coverage, and how much a classic car policy will cost.

The Difference Between Non-Classic and Classic Insurance Car

A traditional car insurance policy for ordinary cars deems them to have decreasing value as it ages. Insurance providers that cover vehicles on this policy follow the depreciation concept when determining the car’s overall cost when paying claims. When you experience a total loss with your non-classic vehicle, the insurance company will pay your covered total loss according to its depreciated value.

However, collector cars derive their value according to the hobbyist or collector market. So the cost of these vehicles increases or remains stable over time. With collector car insurance, there will be a set collector value that remains stable because of the thriving market of hobbyists and investors, maintaining the overall value of the vehicle despite its age. 

Different Types of Classic Car Insurance

Your vehicle is eligible to become part of the “classics” if it is over 20 years old and gets enough historic historical interest to get the attention of avid collectors. Because the definition of “classics” varies from different insurance providers, the policies can also cover other kinds of vehicles. 

Below is a list of vehicles that may qualify for the coverage insurance, classic cars: 

  • Antique Policy – Vehicles that are over 45 years.
  • Classic Policy – Vehicles that are 20 years or older.
  • Replica Policy – Replica or “Kit cars.”
  • Modified Policy – Vehicles with custom modifications.       

The Cost of Classic Cars Insurance

Getting a collector car insurance is cheaper than using your everyday vehicle because these have a lower number of miles driven than primary cars. And it’s not like you’re taking your vintage vehicle for long road trips. The average annual automobile insurance for an everyday vehicle can cost you over $1,000 in New Jersey. However, the average rate you pay for your vintage automobiles’ coverage should be almost half the average cost for a standard policy.

Shopping for Collector Car Insurance

When choosing an insurance company, make sure they provide the following features to get the best deals and policies that suit your vintage automobile:

  • Agreed Value 

Ensure the insurer gives you the option of the agreed value policy. It guarantees that you will get your vehicle’s full initial value without depreciation, paying your covered total loss.

  • Additional Coverage Options

Getting additional coverage options like roadside assistance is essential in keeping your prized automobiles safe from scenarios such as driving down busy highways. 

It’s ideal if you get expert advice for classic car coverage from licensed insurance agents to help you get the best protection and deals for your exotic automobiles. Call your local insurers today to get the assistance you need in building the best policy that is as customized as your paint job.

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