Classic Car Owners Struggle as Auto Insurance Costs Skyrocket
Friday, January 3rd, 2025 Auto Insurance Industry Liability Risk ManagementAuto insurance rates in the United States have risen dramatically, increasing by 51% over the last three years—six times faster than overall inflation. This unprecedented surge has affected all drivers but has been particularly hard on classic car owners. These enthusiasts often drive their vehicles less frequently and file fewer claims, yet they are subject to the same premium hikes as higher-risk drivers.
Key factors behind the rising costs include an increase in reckless driving behaviors such as speeding and drunk driving, leading to more severe accidents and claims. Additionally, lingering effects of the COVID-19 pandemic, such as shortages in materials, parts, and skilled labor, have driven up repair costs. These trends have contributed to a challenging insurance landscape for all drivers, but classic car owners face unique challenges.
Many insurers treat collector vehicles as standard cars, offering little to no consideration for their rarity, condition, or value. Coverage gaps are common, with standard policies often failing to guarantee the use of original parts or provide access to repair shops equipped to handle vintage vehicles. This jeopardizes the authenticity and value of these cars, leaving their owners overpaying for insufficient protection.
Experts in the field suggest classic car owners consider unbundling their policies—separating auto insurance from home insurance—to seek specialized coverage. OpenRoad Insurance, launched in 2024, offers tailored policies that assign agreed-upon values reflecting a vehicle’s true market worth. These policies account for factors such as rarity, condition, and the owner’s financial investment, providing comprehensive protection.
As rates continue to climb, classic car owners must explore these niche insurance options to ensure their treasured vehicles are adequately protected without unnecessary costs.
