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Hagerty car insurance is specially designed for those who collect vintage or classic cars. Hagerty not only provides excellent service and coverage, it also provides a variety of discounts to its customers that help keep premium costs low.
The Difference between Vintage and Classic Cars
However, to those who collect and insure classic and vintage and antique cars, the differences are obvious. This is true in the details of the cars but also in the cost to insure these vehicles.
- Vintage – These cars are the oldest cars around. Any car that was manufactured before 1925 is considered a vintage car. No matter what shape it is in, it is still considered vintage.
- There is one stipulation that an untrained eye may not see, but it is very important to establishing what type of car it is and that is how much work has been done on the vehicle. It must have 20% of the original parts to be considered vintage.
- Classic – These are cars that have been manufactured between 1925 and 1948. Cars in this period of time took a turn from the Model T style to become more sporty and practical for families.
- Like vintage cars, classic cars must retain 20% or more of their original parts.
- Antique – If you have a car that is 45 or more years old it is considered neither a classic nor a vintage car but is an antique car.
How the Classification Affects Car Insurance Rates
The way a car is classified affects car insurance rates. First of all, it is important to note that Hagerty and other vintage and classic car insurance companies do not always hold fast to the classification model.
For example, they will insure a 1966 Corvette even though it is not technically considered a classic car yet.
Since vintage cars are older, rarer, and harder to replace and repair, vintage cars cost more to insure. The monthly and yearly premium amounts are higher, but they can be lowered by increasing your deductible amount.
Classic cars are the second most costly to insure, with antiques cars and those less than 45 years old being the least expensive of the three to insure.
The only exception to this is for certain makes and models of the vehicle. There are certain types of vintage and classic cars that are in higher demand, are more appealing or are rarer than other cars.
Because of this, these cars are more likely to be stolen and may be harder to replace, causing insurance rates to be higher for them.
Why Vintage and Classic Cars Need Insurance
Those who do not own a classic or vintage car may wonder why these types of cars need specialized insurance. The answer is three-fold.
- The first reason is that many individuals who own vintage or classic cars do not drive them on a regular basis. They are either only driven to car shows or not driven at all and just kept in the garage. This calls for a different type of coverage than traditional cars.
- The second reason is that classic and vintage cars are at a higher risk for theft than other types of cars. This, too, calls for a different type of insurance other than traditional car insurance.
- The third reason is that many vintage and classic cars are irreplaceable. This means that even if they are covered under insurance, they could not be replaced or repaired if damage occurs. In turn, this means that they have to be insured for the valued amount of the car because there is no replacement value.
Because premium amounts vary so much, Hagerty offers its customers discounts in a variety of ways. For example, there is a discount for insuring more than one classic or vintage car on the same policy.
There is also a discount for those who go 12 months without a claim or incident. A third discount is available for those who pay their premium yearly instead of monthly.