Classic collector auto insurance is what's referred to as nonstandard car insurance, which includes specialty car insurance for the classic car collector or owner of a modified car.

Classic collector and modified car insurance is very much like standard insurance but with significant differences regarding use of the vehicle and the method of determining value. Although there are criteria for the classic collector--often a minimum age of 25, 10 years driving experience, and a good driving record--insurance on a modified car or on classic cars depends a great deal on the car.

There Are Limitations

A classic auto is usually defined by age, 15 years the usual minimum. In some states, Massachusetts, for example, the age of a classic car must be at least 25 years. Most insurers further require that the components of the classic car are original or restored to original, that the classic be stored in a garage, and that the owner maintains a daily-use vehicle for everyday use.

While limited pleasure driving and club or hobby activities are acceptable under classic car insurance provisions, daily driving, commuting to work, and commercial use of a classic auto is not. Limitations on a modified car are similar.

A Boon To The Car Collector

Also an important difference in classic car insurance is the means of determining the value of the classic car. In most states, Massachusetts, Texas, and Virginia the exceptions, the insured value of the classic car is an 'Agreed Value'.

Unlike the case of standard insurance where the provider determines the value of the vehicle, specialty insurers agree with the owner on the value up front and are bound to that amount in the event of total loss to the classic car.

Because of the criteria on the owner, the use and storage limitations on the classic car or modified car, and the predetermined valuation of the vehicle, specialty insurers can offer insurance rates on a classic auto or modified car that are often better than on policies for vehicles covered under standard car insurance, a real boon to those who have a car collection.