Historic Tags and Classic Auto Insurance
Do Historic Tags Automatically Qualify a Vehicle for Classic Car Insurance?
Many vehicle enthusiasts assume that obtaining historic tags for their car is all they need to qualify for classic car insurance. However, this is a common misconception.
Historic tags and classic car insurance serve different purposes and have distinct requirements. To protect your cherished vehicle properly, it’s essential to understand these differences.
What Are Historic Tags?
Historic tags, also called antique or vintage vehicle registrations, are state-issued license plates for older vehicles. The requirements vary by state, but typically, the vehicle must be a certain age (often 20 years or older) and maintain its original design without significant modifications.
Vehicles with historic tags are usually restricted to specific types of use, such as exhibitions, parades, or special events. They couls also have annual mileage restrictions. These restrictions are intended to preserve the vehicle’s condition and historical significance.
What Is Classic Car Insurance?
Classic car insurance is a specialized policy designed to protect collectible vehicles. Insurers consider various factors when determining if a vehicle qualifies, such as its age, condition, usage, and storage. For example, these policies usually require that the car is stored in a secure garage and used only for limited purposes, such as club events, shows, or occasional leisure driving.
Unlike historic tags, which are a state recognition, classic car insurance involves a contractual agreement with an insurer that takes many additional details into account.
Myth #1: Historic Tags Equal Classic Car Insurance
The belief that historic tags automatically qualify a vehicle for classic car insurance likely arises from the overlap in the types of vehicles involved. While both categories focus on older or collectible cars, their criteria and purposes differ significantly. Historic tags are about state recognition and regulated use, while classic car insurance provides financial protection tailored to your vehicle’s unique needs.
If your vehicle does not qualify for classic auto insurance, you can still get a regular auto insurance policy for the vehicle. The historic tag will not automatically disqualify you from obtaining a regular auto insurance policy..
Myth #2: Historic Tags Will Save You Money on Auto Insurance
Answer: Maybe.
The idea that historic tags will automatically save you money on auto insurance isn’t entirely true. Whether you see any savings depends on the type of insurance you qualify for and your specific insurance company’s policies.
When Historic Tags Can Save You Money
If you qualify for a classic car insurance policy, you’re likely to see significant savings compared to regular auto insurance. Classic car insurance is tailored for limited-use vehicles and typically costs much less. These policies consider factors like restricted driving (e.g., for parades, shows, or occasional leisure), which translates into lower risk for the insurer—and lower premiums for you.
Another potential way historic tags could save you money is if your regular auto insurance provider offers a low-mileage discount. Since vehicles with historic tags are often driven sparingly, you may qualify for reduced premiums if your annual mileage is under the insurer’s threshold.
When Historic Tags Won’t Save You Money
If you can’t qualify for classic car insurance, you’ll likely need a standard auto insurance policy. In this case, having historic tags alone won’t automatically lower your rate unless your insurer provides a low-mileage discount and you meet their criteria. For some drivers, historic tags won’t make any difference in their insurance premiums.
Key Differences Between Historic Tags and Classic Car Insurance
- Issuing Authority
- Historic tags are issued by your state’s Department of Motor Vehicles (DMV) or equivalent agency.
- Classic car insurance is provided by private insurance companies.
- Eligibility Requirements
- Historic tags focus primarily on a vehicle’s age and originality.
- Classic car insurance considers additional factors, including condition of the vehicle, where it is stored, limited usage, and the driver’s history.
- Usage Limitations
- Historic tags often restrict driving to special events or occasional use.
- Classic car insurance may allow more flexibility but typically imposes mileage limits.
- Purpose
- Historic tags aim to preserve the historical value of the vehicle.
- Classic car insurance ensures financial protection in case of damage, theft, or other risks.
Frequently Asked Questions About Historic Tags and Classic Car Insurance
- Do historic tags automatically qualify my vehicle for classic car insurance?
No. While historic tags prove your car meets certain state requirements, classic car insurance has its own criteria, including secure storage, limited driving, and the vehicle’s condition. - Can I drive a car with historic tags daily?
No. Historic tags are intended for limited use, such as events, parades, or occasional leisure drives. Daily driving typically violates state regulations for historic registration. - What do insurers consider when offering classic car insurance?
Insurers look at factors like the vehicle’s age, its condition, where it’s stored, how it’s used, and the owner’s driving record. - Do classic car insurance policies have mileage limits?
Yes. Most classic car insurance policies impose annual mileage limits, often ranging from 1,000 to 7,500 miles, depending on the provider and coverage terms. - Do I need another car for daily driving to qualify for classic car insurance?
Yes. Insurers usually require that all drivers in the household have a regular-use vehicle for daily transportation. This ensures the classic car is not used as a primary vehicle.
How to Get the Right Protection for Your Vehicle
If you have a vehicle with historic tags, securing classic car insurance can add an extra layer of protection for its value. To qualify for coverage, meet the insurer’s criteria by keeping your car in excellent condition, storing it securely, and limiting its use to agreed purposes. Classic car insurance policies often include benefits like agreed value coverage, which guarantees that you receive the vehicle’s full appraised value in case of a total loss.
And remember, if you do not qualify for classic auto insurance, we will have regular auto insurance options available for you.
It’s also important to consult with insurance experts who understand the unique needs of collectible car owners. They can help you navigate the requirements and recommend the best coverage for your situation.
Contact Huff Insurance
At Huff Insurance, we know how much your classic or historic vehicle means to you. We are an independent insurance agency serving Maryland since 1960. We work with multiple insurance companies to find coverage that meets your needs and budget.
An independent agent is someone who works for you—not the insurance company—to provide personalized options and guidance. Whether you need classic car insurance or any other type of coverage, we’re here to help you make informed decisions. Call us today to learn how we can protect your prized possession.