You need car insurance on a vehicle you are restoring only if you drive it on public roads. Since many car owners never actually drive around their cherished “classic” on the road, but prefer to show the car off to friends, display it at auto shows, and photograph it until they run out of film (or memory) liability coverage is not need.
Of course, even if you never drive your restored car on public roads then insuring it against other damage may still be a good idea. Examine the details and before deciding whether or not to insure your work in progress.
Finding the best car insurance for any type of car is easy if you are willing to do a little research. Enter your zip above to get free quotes from many car insurance companies!
Does a car that never leaves my garage require car insurance?
First, let’s consider the liability issue, which is the only coverage that is legally required in most states. Liability insurance protects others from damages you inflict in an automobile accident. This coverage affects other people, so if you do drive a vehicle on a regular or part-time basis, you are responsible for the damages you may inflict to other vehicles.
The only exception to this rule would be if you live in a no-fault state, where the state declares that no one is at fault, and that insurance companies pay for the damages of each client. A few states and territories may have special terms that order no liability insurance is required at all. However, even if you live in one of those states, you will still be legally responsible for damages you cause on the road, meaning you could be sued by another motorist.
The simple answer is that if you never drive your restored car out on public roads, then you are not obligated to pay liability insurance. You can keep the car on-site and continue to photograph it or showcase it to others. (Museum-stored cars are a good example.) Some of these cars might be towed, air-transported or carried via truck. Remember that some of these restored cars don’t even have working engines. Therefore, the idea of paying liability insurance on a car that is never driven is pointless.
Does a car that occasionally leaves the garage require insurance coverage?
Absolutely. Many car owners want to drive their restored masterpiece, whether they take it out for a test spin, personally transport it to a show, drive in the annual classic car parade or modify the engine in some way. If you journey out onto public roads, then you will be required to have some form of liability insurance in the states that require this responsibility. Basically, that is all but New Hampshire. Even there you need car insurance or proof of funds to pay for any damage you cause.
Just because liability insurance is required in your state does not mean that you have to pay full time rates for a part time vehicle. If you own a classic car then you probably only drive the car a few times every year. Instead of signing up with a traditional coverage policy, try asking your insurance agent (or a representative of the insurance provider) for special coverage. This insurance coverage may be custom-created according to your situation. For example, for a majority of the year, you may only have comprehensive coverage, which would protect your car from unforeseen property damage and vandalism. Don’t underestimate the expense of taking care of an antique car!
However, for a limited number of days, the auto coverage has full coverage, which includes liability insurance, comprehensive insurance and collision insurance. Collision insurance in this context means that you will be covered for the damage caused by other drivers.
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What might help you is to calculate how long you will keep your car in a state of remodeling. The value of your car increases with stages of remodeling, and so comprehensive coverage is a smart investment. Nevertheless, this scenario is only recommended if your antique car is a secondary vehicle. If the vehicle is your sole car, you may actually end up paying pay higher rates on insurance premiums. It helps tremendously to call your agent and explain your situation.
Experts also recommend buying comprehensive coverage on vehicles that have potential for high resale value. You can always drop comprehensive coverage (and keep the vehicle covered and secure) and keep liability insurance collision coverage for the rare times you drive it publicly. Another problematic scenario is if you have a note out on the car. In this case, the car dealer or financing institution will usually demand that you buy full coverage on the car. Collision and comprehensive insurance are usually part of a traditional insurance policy—and all the more so for an expensive antique model.
For the best results, try to check to see if your insurance company provides multi-car discounts. Be sure to check for price quotes on second-car discounts, loyal customer discounts, and other options. You can get started comparing quotes right now by using our free tool to get quotes from companies that specialize in insuring classic cars or your particular ride. Enter your zip now for free quotes!
