Classic cars evoke feelings of nostalgia that their modern counterparts – with all the technological wizardry onboard – cannot match. This is even more so if the classic is from a brand like Porsche, with such a rich and storied history. People will regularly pay six-to-seven figure sums to own a classic Porsche. In the world of automobile classics, market values are not only driven by the laws of demand and supply. Other non-monetary factors like sentiment, condition, rarity and status also play crucial roles. These elements combine to place classic cars on a pedestal far above the realm of regular automobiles.
It follows, therefore, that they are often treated differently when it comes to ownership. One of the key areas where this uniqueness is apparent is insurance. Insuring a classic Porsche involves certain peculiar considerations, and the vehicle owner must be fully aware of all the available options before making the final decision.
Owning an old Porsche is not necessarily an automatic qualification for classic car insurance coverage. The vehicle typically has to meet preset criteria. There may be slight variations depending on factors like where the car is located or the insurer’s rules. Here are some of the standard requirements/considerations that may apply to anyone seeking classic car insurance for a Porsche.
The vehicle must be between 10 to 20 years old.
Annual mileage is typically less than 5,000 miles.
Availability of storage facilities.
Condition of the vehicle
A separate car for regular use
Comprehensive driving record
Insurance as a tool for safeguarding your classic Porsche
Like regular auto insurance, classic car insurance policies cover the vehicle’s agreed value and account for other specifications, such as usage, storage, and more. A typical classic car insurance package will often include collision insurance, roadside assistance, property damage liability, bodily injury liability, medical payments and comprehensive insurance.
In addition to all these standard offerings, certain unique elements will be covered, allowing the classic Porsche owner to derive maximum benefits from ownership.
Additional coverage options under classic auto insurance
There are a number of additional coverage options that differentiate classic auto insurance from regular vehicle insurance. These options are wrapped up in terms like agreed value coverage, tiered mileage, spare parts coverage and even automobile memorabilia coverage.
Agreed value coverage
Regular cars lose value over time, and consequently, depreciation automatically assumes a critical role in determining, among other things, the insured amount and premiums payable. However, it’s slightly different from classic cars as they do not necessarily depreciate and may even gain value with time. The usual practice is to determine an agreed value at the beginning of the classic car insurance policy. If the car is unfortunately damaged and written off, the insurance company will pay out the amount the vehicle was worth when the policy was executed.
Spare parts coverage
It is not unusual to have spare parts coverage as part of the classic car insurance. This ensures that spare parts can be procured for the vehicle in cases of damage or theft. It frees the policyholder from the stress of having to scrounge around for these parts as they may be difficult to obtain.
A standard vehicle’s coverage is typically restricted to the state or country where it’s located. However, insurance companies can offer worldwide coverage for classic cars. This will guarantee protection if the vehicle is damaged or lost during international car shows and similar events.
Tiered mileage plans
A classic car insurance is generally cheaper than a policy taken out for a regular vehicle. This is because classic cars are driven much less, reducing the likelihood of accidents and other associated risks. However, it is possible to secure an even better deal by agreeing to a tiered mileage plan. Here, the policyholder can get lower rates by keeping the mileage within pre-agreed limits.
Classic car automobilia coverage
Classic cars will often include bits of memorabilia that hold their own value, separate from the vehicle, for various reasons. Adding them to the insurance policy is a smart move that should not be taken lightly. They only add a small amount to the overall premium in most cases. Automobile memorabilia that can be covered include model car replicas, customized license plates, hood ornaments, automotive literature, posters and signs.
As mentioned earlier, classic car insurance policies are typically not as expensive as the ones for regular daily drivers. There is a very reasonable logic behind this. Classic cars are driven infrequently, and the expectation is that they are well maintained and looked after at all times. As a result, classic car policyholders are less likely to file a claim than regular drivers.
Of course, there are exceptions to this rule. For example, your rates may be higher if your classic Porsche is an abnormally expensive vehicle. Track use will also attract higher premiums than classic cars that will only be taken out for occasional country-side drives or displayed at exhibitions.
It is highly recommended that you carry out your due diligence before making a final decision regarding the most suitable form of insurance for your classic Porsche. Shop around for the best deals as insurance providers have tools to provide a quote after only a few clicks on their website.
Also, not every element has to be added to the policy. A classic Porsche owner with zero plans of attending international car events need not worry about worldwide coverage. In the same manner, automobilia coverage is not applicable in every scenario. A careful evaluation of the essentials will help manage the cost of the classic car insurance policy.
Multiline discounts are also a great way to save on your insurance policy, and here, some insurance companies are at the head of the line. For example, InsuranceNavy offers both regular insurance and classic car insurance. You could qualify for discounts if you use the same company to insure your entire collection – both classics and the regular rides.
In all, understanding your exact requirements and available resources are critical to securing the right insurance cover, allowing you to continue creating beautiful memories with your classic Porsche.