Keep It Classic
Why Hagerty and Grundy are better than State Farm for your vintage ride.
You spent 5 years restoring a 1969 Camaro. It is your baby. It is worth $60,000 easily. You add it to your regular GEICO policy.
Total disaster. If that car gets stolen, GEICO will pay you the "Book Value" of an old Chevy—maybe $2,000. To protect a collectible, you need specialized insurance.
1. Agreed Value vs. Actual Cash Value
This is the single most important term in collector insurance.
- Actual Cash Value (Standard Policy): Pays what the car is worth minus depreciation.
- Agreed Value (Classic Policy): You and the insurer agree on the value upfront (e.g., $60,000). Total loss? You get a check for $60,000. No depreciation. No arguments.
2. The Restrictions
Classic car insurance is incredibly cheap (often $200/year for full coverage). Why? Because it comes with strict rules:
- Usage Limits: You cannot drive it to work. It is for exhibitions, parades, and pleasure drives only.
- Storage: It usually must be kept in a locked, private garage. No carports.
- Mileage: Often capped at 2,500 miles per year.
3. Specialized Coverage
These policies understand restoration. They often include:
- Spare Parts Coverage: Thousands of dollars for that rare engine block sitting in your garage.
- Restoration Coverage: Protecting the car while it is in pieces at the body shop.
Conclusion
If your car is an asset that appreciates in value, get it off your standard policy. Call Hagerty, Grundy, or American Modern. It is cheaper and actually covers what the car is worth.