Auto and Car Insurance

What are the advantages and disavantages of insuring a classic car with a standard carrier such as State Farm?

I have a 1962 Mustang that I don't typically drive. I would like to purchase insurance; however, I have been told that I should shop around from my exisitng standard carrier. I have heard from friends that I can get a much lower premium with a "specialty carrier". Any thoughts?

Public Comments

1. Standard carriers use blue book values. The blue book value of most classics are virtually nill because of age. Companies that specialize in classic cars take pictures and take into account the actual value of your prized masterpiece more as a work of art than as an actual automobile.
2. My 68 Mustang is $120 every 6 months with State Farm (yes full coverage) and it is insured for my appraised value of 23000. There does not seem to be much room there to save. And yes State Farm is a stated value on classic cars.
3. not a problem i have a few classics insured by progressive. they use the old car price guide and it is very fare... a 62 mustang huh?
4. 1962 Mustangs were mid-engine, two seaters and production was very limited. 1964 was the first year "normal" production of the four seat, front engine model started. Until now it was thought there was only one 1962 model left, that sitting in the Ford Car Museum. You need to talk to your insurance agent, see if he can find out a value of the car, then give you a quote.
5. We had checked into getting ins. on a classic car before and we were told that it would not cover the car unless it was being hauled on a trailer (to car shows, etc.). It also seems like there might have been something about being able to dive it on Sunday. So that is something that you want to find out about when you are getting your insurance. I'm sure you want it to be insured if you decide to drive it somewhere. I would be careful getting ins. with "specialty carriers". Go with a company that has a good reputation that you know you can trust. It does make a difference if you ever have to file a claim.
6. A carrier such as State Farm will insure your vehicle but if there is a loss they will pay actual cash value at the time of the loss. You also have a 6 month policy with State Farm. A collector car policy will usually insure it on an agreed value basis (it is something you would want to make sure of before signing the application). Agreed value pays you actual cash value (just like your other car insurance does) if the vehicle can be repaired. If totalled they will pay the "agreed amount" that is listed on your policy. If the vehicle is worth 30,000 and you have it insured for 30,000 there is no question after a total loss. They write you a check for 30,000. Try www.hagerty.com. If it is a stock vehicle they have really good rates and the policy is a yearly policy. They will not let you remove the liability when you are not using it but the premium is pretty cheap. I just insured a couple of GTO's with them and the premium came out to 89.00 every 6 months per vehicle. That was zero deductible. If the vehicle has been modified the premium will go up. You can take out a policy with Hagerty online. Otherwise call an indepedent agent and they will have other collector car policies for you. There are also driving stipulations on a collector car policy and you have to have a personal auto policy. If the Mustang is something that you are going to be driving alot or driving it to work then insure it with State Farm. If it is a true collector vehicle and kept mainly in storage then it should be on a collector car policy.
7. INSURING YOUR CAR WITH STATE FARM WILL COST MORE OVER THE YEAR THEN INSURING IT THROUGH SOMEONE THAT SPECIALIZES IN CLASSIC CARS BUT THERE ARE SOME RESTRICTIONS THAT MUST BE FOLLOWED...........SEE BELOW. Usage. Provides coverage for vehicles that are used on an occasional basis -- e.g. club functions, exhibitions, organized meets, tours and limited pleasure driving. Storage. Collector vehicles must be stored in a fully enclosed, locked garage when not in use. Driving records. Generally, one or two minor traffic violations or accidents are acceptable. They are not able to insure those who have experienced major infractions such as a DUI, reckless driving or excessive speed violations within the past 3-6 years.* All household driving records are subject to review by an underwriter. Regular-use vehicles. Each licensed household driver needs to have a regular-use vehicle for daily driving and must maintain regular-use insurance in his or her own name. EXAMPLE FOR YOUR VEHICLE IF YOU WERE FROM TEXAS..... CAR VALUE: $25,000 1 YEAR PREMIUM: $247.00 0 DEDUCTIBLE FREE TOW WITH FLATBED