Are you a proud owner of a classic beauty or a modern marvel?

Whether your car is old or new, understanding coverage for collector cars is a critical component to keeping them turning heads. Here we discuss coverage options to help demystify the process and find a great plan for your collector car.

Can I add a collector car to my existing auto policy?

A separate policy is recommended for collector cars. Here's why:

• Higher value - Collector cars often have a higher value than regular auto insurance covers. Plus, unlike everyday cars, collector cars tend to appreciate in value over time. A separate policy can help ensure your car is properly protected.
• Specialized coverage - Collector cars require unique coverage due to their age, rarity, and characteristics. Policies can include specific coverage for spare parts, restoration, and use at events or exhibitions.
• Usage restrictions - Because collector cars aren't used like normal cars, coverage may include mileage limits and usage restrictions, some of which are outlined in this article.

How is the insured value of a collector car determined?

This process can vary, depending on the insurer. However, it typically involves an appraisal, where an expert assesses factors like condition, authenticity, rarity, and market demand to determine the car's value.

Then the insurer conducts research on similar vintage cars, considering recent sales prices, auction results, and industry guides. This establishes what is called the "agreed value" of the car, which may differ from its resale value.

Note that the car's value may need periodic re-evaluation, especially with market or condition changes. An annual review is recommended to assure coverage and agreed value are up to date.
 

Are there any insurance restrictions on the use of my collector car?

Typically, yes. Common usage restrictions for insured collector cars include:

• Limited mileage to reflect the limited use of collector cars
• Storage requirements, such as a secure, climate-controlled storage facility when the car is not in use 
• Show and exhibition use, where specific conditions and restrictions may apply, such as prior notification or limitations on competitive events or racing
• Non-commercial use, which typically prohibits commercial activities like ridesharing or delivery services
• Typically, collector car policies require drivers to have a separately insured vehicle for regular daily use.

Can I get coverage for my collector car during transport to a car show?

Yes. Most insurance companies offer specialized coverage designed to protect your vintage car from any damage or loss that may occur during transport. 

Will my insurance premium be higher for a collector car?

It varies. Collector cars are usually valued higher and may require specialized parts or work. Factors like age, condition, and rarity can also make collector cars more costly to repair, which would impact rates. However, their infrequent use on roads may mean lower liability coverage costs, which could help offset a higher premium.

What is the first step I should take in insuring a collector car?

Talk to your independent insurance agent about insuring your collector car as part of your overall personal insurance account. If you don't have an independent agent, we can help you find one. 

All products are underwritten by The Hanover Insurance Company or one of its insurance company subsidiaries or affiliates (“The Hanover”). Coverage may not be available in all jurisdictions and is subject to the company underwriting guidelines and the issued policy. This material is provided for informational purposes only and does not provide any coverage. For more information about The Hanover visit our website at www.hanover.com.