Classic Car Insurance FAQs

If you own a classic car like a 1965 Ford Mustang, you need classic car insurance. Yes, it would help if you had this special insurance because traditional car insurance is insufficient for collectors or antique cars. Since classic vehicles appreciate, you need a unique insurance policy that protects the true value of your vehicle. 

Do you own a classic car? Or perhaps you are an enthusiast who intends to own one? Hinman & Associates Insurance of Reno, NV, shares what you need to know about classic car insurance.

Is classic car insurance mandatory?

Yes, if you drive on public roads, Nevada requires you to have liability coverage in your auto insurance. This coverage protects you when accused of bodily injury or property damage by third parties.

What does classic car insurance cover?

Classic car insurance provides similar coverage to your typical personal auto insurance. Here is a snapshot of classic car insurance coverages:

  • Collision and comprehensive coverage: These coverages protect your car against physical damage from perils like accidents, falling objects, theft, fire, and other natural disasters. 
  • Liability insurance: It cushions you against third-party liabilities.
  • Uninsured motorist coverage: It protects you against uncovered bodily injury and property damage caused by a driver without insurance.

Besides the above coverages, there exist special coverages unique to classic cars. Some include:

  • Cherished salvage coverage
  • Spare parts coverage
  • Vehicle under construction coverage
  • Restoration coverage
  • No attendance coverage
  • Automobilia coverage

What’s the difference between stated value and agreed value?

What happens if your classic car is totaled? What amount do you receive from the insurer? Like mentioned, classic cars appreciate, unlike conventional vehicles. As such, you need to differentiate between the below values to protect the value of your vehicle.

  • Agreed value: It’s the amount pre-agreed between the policyholder and the insurer. This is the amount you receive (less deductible) when your car is totaled. However, you can adjust this amount if your car appreciates.
  • Stated value: It’s the amount you tell the insurer that your car is worth. Of course, you will have to support the value with documentation. 

If you own a classic car, the agreed value is the best option since it guarantees you to recoup your financial loss if your vehicle is written off.

Where can I buy classic car insurance?

Need classic car insurance? If you are in Reno NV, and its environs, please look no further than Hinman & Associates Insurance. We will offer you classic car insurance that protects your heritage and memories.