Insuring Specialty Vehicles

Spring brings fresh blooms, renewed energy, and warmer weather. For car enthusiasts, it also signals the return of driving season for specialty vehicles—without the risks posed by snow, ice, and road salt. Insuring a specialty vehicle differs significantly from insuring a daily-use automobile, and understanding those differences is essential before getting back on the road.

Some insurance carriers offer coverage for specialty vehicles under the same policy as everyday drivers. However, many insurers specialize exclusively in antique, classic, and exotic vehicles. Determining the most appropriate placement for your vehicle is an important conversation to have with your insurance agent. Factors such as how the vehicle will be used, the scope of coverage offered, and the unique needs of the owner all play a role in selecting the right policy.

Whether you are insuring an antique, classic, or exotic vehicle, there are several key considerations. These include how the vehicle will be used, where it will be stored, its condition, and its overall value. Usage of antique or classic vehicles is typically limited by mileage, with specific guidelines varying by insurer. In most cases, vehicles must be stored in a fully enclosed, secure structure when not in use.

Specialty vehicles may be insured on an agreed value, stated value, or actual cash value basis. An agreed value policy specifies the vehicle’s value at the time the policy is written and guarantees that amount will be paid in the event of a total loss, less any deductible. Actual cash value coverage reflects replacement cost minus depreciation and often does not account for the collectible nature of specialty vehicles. With stated value coverage, the vehicle’s value is declared by the insured; however, in the event of a loss, the insurer may pay either the stated value or the actual cash value, whichever is less. Most insurers also require current photographs to assess the vehicle’s condition as part of the application process.

Like a standard auto policy, specialty auto insurance typically includes liability, collision, comprehensive, uninsured and underinsured motorist coverage, and medical payments. For vehicles stored for extended periods, many carriers offer policy options that accommodate limited or seasonal use.

As warmer weather approaches and you prepare to take your prized vehicle out for a drive, it is important to review your coverage and ensure it aligns with your needs. Discussing any questions or changes with your insurance agent can help ensure your specialty vehicle is properly protected.