There are many classic car insurance companies in the auto insurance sector. While companies cater to all types of cars – classic, sports, and everyday use. Many boast of the best rates and others of excellent coverage in the policies. However, insurance of antique or collector’s edition cars is a niche insurance area. The reason being the value of the cars and their maintenance expenses. Most of these cars are far too valuable to be driven everyday to the office and are taken out for an occasional drive or display rally. Insuring such cars needs investment by the insurance companies into special underwriters who can specify the best combination of premium rates and coverage that these high-risk cars demand.
The companies, considered the forerunners in classic auto insurance, are Heritage Classic, Geico, Collector’s and Allstate.
Heritage Classic Company is based out of the UK and has been in the market since 1965. Its USP (Unique Selling Proposition) is that it caters to a very small clientele and are able to concentrate on the needs of the group by not being very large itself. It however, does not extend the smallness of size to the array of policies it offers to its clients. To show its enthusiasm and involvement with the client base, the company is part of many motoring clubs in the UK like the RS Owners Club, Porsche Club GB, Lotus on Track and the famous Singer Owners Club. They promote for all classic car owners covers like limited mileage, historic rally cover, club member discounts among others and many more additional benefits like multi-vehicle policies, breakdown endorsements for UK and European countries, and certified agreed valuation, which is crucial for any antique car.
Government Employees Insurance Company or GEICO is a subsidiary of the Berkshire Hathaway car insurance company. It has been in existence since 1936. It has a very robust standing and gets consistent Moody’s ratings of AAAs for its strength. What works in this company’s favor is its policy of cutting its operating costs to provide discounts to its client base. As for classic cars, per this company, a classic or ‘collectible‘car should be at least 25 years old. It is important for a vintage car owner to get their vehicle valued by a GEICO agent. In addition, if the collector’s car policy is bundled with their modern cars, it will be reviewed by the agent.
This is an insurance agency targeted at the exclusive club of classic vehicle owners. The highlight of its selling strategy is the coverage based on agreed value for not just classic cars but also vehicles like trucks and motorcycles, which fulfill the norms specified. It also advertises competitive rates for modified cars. Since its focus is on the niche clientele of collector and antique vehicle owners, it provides other value. Additions like newsletters, blogs and trivia forums.
Allstate insurance for classic cars is different. They promote ‘bundling’ the classic car policy with the new one as opposed to one of its competitors. Also, adding the coverage for the car driven only to road shows, display, and exhibition as an endorsement to the existing car policy. Of course, the car make and value need to be agreed upon after consultation with the Allstate insurance agent.
In conclusion, dependent upon the need, the car owner has many options to choose from, apart from the ones listed above.