When talking about collecting automobiles, there are many variables. How old is your classic car, how is it going to be used and how will it win insurance coverage?
While the actual definition of “classic car” varies by state, the Classic Car Club considers it any car manufactured from 1915 to 1948. However, many cars of this type which are still running and have been treated better than average are not registered as classics or antiques. It is important to read your state’s laws carefully in order to determine its criteria for what constitutes this category.
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Moreover, different states have diverse regulations and guidelines for what qualifies as a classic automobile; what is antique, vintage and just old. Explore the criteria for being one of the top classic cars in the world!
What Age Makes A ‘Classic Vehicle ’?
There are several definitions of “classic car”, and varying ones are in wide use. For example, the British Motor Museum lists classic automobiles as from 1915 to 1948 while America’s Classic Car Club says it includes all fine or distinctive automobiles assembled before 1948.
Yet for registration purposes many states would classify cars of that age as antique or vintage vehicles. (To get the principle of it, consult your own state’s specific laws to see what a classic car is).
In most cases for insurance and registration purposes, 20-40 year olds are classic automobiles. If you are going to register it as a classic, it should not have been more than 40 years old. The way it was originally built must remain consistent with no means of restoration.
It includes the material used in the interior and the parts used in the engine. It also means no modern touches should be add in. For example, a built-in GPS navigator or an MP3 player in a 1988 Mustang is a no-go.
The Difference Between Classic, Antique, and Vintage Cars
A lot of people are confuse as to what a classic car is and how it is different from an antique or vintage car. The term “classic” has been used interchangeably to describe just about any old car that seems out of place among modern daily drivers. There are several terms of jargon people use when describing these cars.
But when it comes to registering your car, participating in car shows, finding a trained mechanic who has the skills to work on your car, and applying for Antique Auto Insurance, understanding the differences between each type of vehicle is necessary.
Vintage compared to Antique Cars and Classic Automobiles
We’ve listed all three below, and here they are in general terms:
A vintage car is any vehicle manufactured between 1919 and 1930.
An antique car is any car made in 1975 or earlier (or more than 45 years old).
The classic car is any vehicle manufactured in the 1990s or earlier (or at least 20 years old).
However, each state DMV, insurance company and classic car club applies a different definition to these terms. California in particular does not differentiate between classic, vintage or antique vehicles. The California DMV Motor Vehicle Codes rule that one could get a Historical Vehicle plate for a car from 1922 or earlier with 25 years age or more.
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Those with engines of more than 16 cylinders and made between 1922~1965, are called Horseless Carriage Vehicles. Modified cars and replications just don’t fit into either category at all.
Now you know what classic, vintage, and antique cars are and the curiosity shifts to what is its value?
Counting The Cost
Surprisingly, on some occasions it may actually be less expensive to insure a historic car than it is a regular one. Though the insurance process works much the same as a standard policy. Your policy terms will be for one year, and you will receive collision, liability, comprehensive and uninsured or underinsured motorist coverage. Your state’s mandatory liability coverage applies to your heritage car.
Most states require that you carry insurance on a historic automobile, no matter where it is simply sitting. Yet, some states allow you to totally drop off coverage of a vehicle not being driven only on the condition wherein you will take the tag and registration back to them.
Valuation of a Historic Car
When a policy is issued for a classic car, the insurance company must consider two factors: physical damage to the car and limited road use.
Policies covering physical damage are done on a valuation agreed upon by the car owner and insurance company, based upon an appraisal. Insurance companies will also require that road use is severely limited for classic automobiles. This stipend helps to keep the premium cost low when insuring a antique car.
Insuring a Classic Automobile
Insurance companies have an independent category for classic cars. They insure classic automobiles at a different rate and have certain parameters that must be adhered to. You must check with your insurance company to see what their rules are.
According to Insurance Information Institute, the criteria listed below is what they follow to distinguish true heritage cars by simply old cars:
Type
Before December 1904, the car can be judged as either a veteran; January 1905 to December 1918 as an Edwardian; restricted; rare and special interest; limited editions.
For cars made before 1974, the vintage collector expects it to meet one of these five historic car requirements at least:
- Convertible
- Foreign sports car
- Two-door sports car
- Big block V8-powered
- Unique body shapes
- Four-door sedan
Age
- In most states, a car must be at least 15 years old to be called a classic – in some states, it must be 25 years or older.
- Car owners often find that insurance companies impose some age restrictions on drivers.
Driver background
- Only adults of legal age can drive such a car.
- Drivers also need excellent driving records and considerable experience.
Storage
Here are some examples of the strict guidelines insurance companies have for the storage of such cars:
- The car may not sit outside.
- The garage must be very secure.
- Some insurance companies even require the classic automobile to be placed in an auto storage business.
Usage
- Classic cars cannot be used as the primary car.
- They can only be driven infrequently
- The vehicle may have a mileage restriction of around five thousand miles annually.
If you own a antique automobile, it is essential that you have the right insurance for it.
Some Examples of Rare Antique Automobiles
Most expensive cars auctioned:
Tucker 48
Preston Tucker made a grand total of only 51 units of this car before he went bankrupt.
Today, these post-World War II innovative sedans are keenly sought after by collectors.
1962 Ferrari 250 GTO
With only 39 made, this car is considered one of motoring’s ‘Holy Grail‘ by collectors. During 2018, a 1962 model Ferrari 250 GTO went up for auction and achieved a record-breaking sale price of $48.4 million, highest that any car has ever reached through public auction.
1937 Bugatti 57SC Atlantic
Only four of these magnificent Art Deco-inspired coupes were ever built.
Making it one of the rarest and most valuable classic cars in the world.
What Are the Different Eras of Cars?
For those car enthusiasts who love old automobiles, generally there are six different eras that cars can be categorized in. These are rough groupings, because they have no actual start or end dates. Some lines of vehicles were really ahead of their time. The eras include:
- The Veteran Era: Vehicles from the late 1800s up until around 1905, including steam-powered horseless carriages.
- Brass/Edwardian Era: Cars from 1905 through 1920, so called because they were trimmed in brass in order to honor King Edward VII of England.
- The Vintage Era: Cars from 1918 until 1930.
- The Pre-War Era: Any car produced up before World War Two, 1930 to 1946.
- The Post-War Era: Cars from the end of World War Two to around 1980y.
- The Modern Era: Cars produced after 1980 all the way up until today.
A new era of auto is coming soon, with the boom of the EV market as the basic invention needed to push us into a new era of production.
Classic, antique, and vintage cars each have their own appeal. The history might make them worth keeping for some people to collect. The feel of old cars is enough for others.
All cars are susceptible to damage by the environment, no matter how old or new. You must store your investments safely and securely in a dry place which keeps out moisture and rust.
Why Can Antique Car Rates be Lower?
Rates are generally lower on classic cars for the simple fact that they are “limited use” automobiles. When a vintage car is registered with the DMV as such, the state may impose some restrictions such as: when it can be driven, where it can be driven (i.e: to club meetings, auto shows, parades, etc.) how many miles it can be driven or if the car is registered in this way at all, it may not be used for general transportation.
If a car spends more time in the garage than it does on the road, naturally this will lead to fewer accidents or any other damage.
Old Cars Become Valuable With Age
But don’t always figure an older car is going to cost less to insure than a new one: that’s more exclusively for sporty cars or motorcycles. In fact, to purchase and maintain, a classic automobile could well become an investment earning great interest. Insurers know that well kept heritage cars must eventually increase in value rather than decline.
And even with their parts, if correctly conserved and cared for lovingly, historic car usually will be worth more than new cars.
FAQs
While collectible cars can be quite expensive, you can sometimes find them at a lower price than a classic automobile. This very much depends on the make and model of the car, and quality. If you do it yourself, you may be able to get a collectible for a good price.
The value of your car is also seen to make on a particular basis model and restoration quality. A fully restored antique car can be named for its price. Still needs to be completely restored and can actually depreciate the value quite a lot.
Because the term antique is very loose, anything older than 25 years to 45 years is typically considered vintage. Vintage cars are commonly thought of as those that were manufactured between 1919 and 1930. Anything before that time period becomes an antique in our vocabulary; and anything afterwards merely seems old!
Your car does need to be insured under a regular auto policy. It is best to insure your classic using a collector car insurance policy. A collector car insurance policy can save you from 40% to as much as 80% on your monthly rates compared with a standard auto policy depending upon which reputable company provides this coverage in your state of residence.
