Mileage insurance

Mileage insurance – the option that every classic car owner should consider.

If there's one thing all classic car enthusiasts know, it's that we don't drive our treasures every day.

Unlike a modern car that's on the road every day, a classic spends more time in the garage than on the road. We take it out for exhibitions, weekend drives, or that special outing that fills us with nostalgia and adrenaline.

So why pay for conventional insurance as if we used it every day?

This is where the mileage insurance, an option that can save us money without sacrificing protection. But is it really ideal for classic cars? Let's analyze it together.

How does mileage insurance work?

This type of insurance is based on a simple concept: You pay according to the number of kilometers you travelThat is, instead of a fixed annual fee, the payment is calculated based on the actual use of the car.

The system is simple:

✔ A device is installed in the car to measure the kilometers traveled.

✔ Some insurers allow manual reporting if you prefer to avoid devices.

✔ The less you use your car, the less you pay.

For someone who only pulls out their classic on special occasions, this may seem like the perfect solution.

But is it really? Let's keep exploring.

Advantages of mileage insurance for classic cars

I'm not going to lie, when I first heard about this type of insurance, I was excited. It seemed tailor-made for us collectors.

Here are some advantages that caught my attention:

✔ Savings on insurance premiums: You only pay for what you use, ideal for those who drive less than 5,000 km per year.

✔ Flexibility: Some insurers allow you to adjust your plan if you decide to use your car more at certain times of the year.

✔ Full coverage: Even if you pay less, you still have protection against theft, accidents, and unforeseen events.

Sounds perfect, right? But here's the other side of the coin.

What no one tells you: possible drawbacks

While mileage insurance has benefits, it also has some pitfalls that may make it not the best option for everyone.

🔹 Strict limits: Some insurers set an annual limit, and if you exceed it, your costs can skyrocket.

🔹 Constant monitoring: Not everyone likes having a device tracking their car.

🔹 Restrictions on events and exhibitions: Some policies do not cover damage within exhibits, a problem for collectors.

If you like to take your classic to a lot of shows or just take more rides than you imagined, this probably might not be the best option.

Real Stories: Successes and Mistakes with Mileage Insurance

I'm going to tell you about two experiences I had firsthand, one good and one not so good.

Case 1: Juan and his 1967 Chevrolet Impala

Juan is a friend who barely takes out his Impala. He only uses it for events and a couple of times a month to keep it in shape. He decided to try mileage insurance, and in his case, it was a great decision.

He ended up paying 40% less than with his traditional insurance. Plus, his policy included full coverage, including crane transfers to exhibitions.

For him, mileage insurance was a total success.

Case 2: Carlos and his 1969 Mustang GT

Carlos, on the other hand, was overconfident.

He bought mileage insurance thinking he wouldn't go over the limit. But between spontaneous trips, visits to friends, and events, he exceeded the limit before midyear.

When he inquired about expanding his coverage, he discovered the insurer was charging him sky-high rates for each additional mile. He ended up paying more than he would have with traditional insurance.

He learned his lesson the hard way.

Is it the best option for you?

The answer is: It depends on how you use your classic.

If you only take it out a few times a year and can keep track of your mileage, it can be a smart choice.

But if you're one of those who "says they don't use it often" and ends up taking impromptu trips every weekend, it's better to look for a traditional policy or one specifically for collectors.

Is mileage insurance for classic cars worth it?

There's no single answer. For some, like Juan, it was a significant savings. For others, like Carlos, it ended up being a cost trap.

The most important thing is to analyze your usage style and read every detail of the policy before deciding.

If you drive very little and can control your mileage, it can be a great option. But if you participate in events, enjoy impromptu outings, or simply don't want to be limited, traditional insurance may be the best option.

The only thing that's certain is that, regardless of your insurance policy, protecting your classic car is a priority. Because every mile you drive in it is another story to tell.

And you? What kind of insurance do you have for your classic car? Tell me in the comments!