[KManiac]

The reason the insurance premiums are so high for you younger folks out there is not so much the value of the car you happen to buy, but by the statistical model used by insurance underwriters that anticipates a higher instance of liability claims by drivers in your age group.

Case in point: Before my 16 year old step-daughter got her drivers license, we bought a 1986 Volvo for her to drive. We paid a mere $1,000 for this car. I put basic liability insurnace on this car, including theft and vandalism coverage, but no collision. The insurance premium started out at $33 a month for just my wife and I driving it. When my step-daughter got her license, we added her to the policy on this car and the premium jumped to $100 a month, a 300% increase. I was now paying more per year for liability insurance than I paid for the car. The only reason the premium went up was because my daughter was inexperienced and more likely to run into things than my wife and I.

Now, there are classic car insurance policies out there that are cheaper than normal policies. But there are restrictions on the use of vehicles covered under such policies. First of all, the classic car must NOT be your daily driver. There are limits for annual mileage and use must be restricted to car related or recreational events. Some policies even require storage of the car in an enclosed garage. So, if you happen to buy a classic or muscle car, and it is your only car, and you apply for classic car insurance, the first question your agent will ask is, "What is your daily driver?" If you don't have a second, daily driver, you won't get the classic car policy.

Another thing I have learned, too, is that insurance companies don't really care what is under the hood of cars more than five years old. My 1964 Chrysler Newport with the 361 CI, 2-barrel is no bigger risk to them as my 1964 Chrysler 300-K with 413 CI, twin 4-barrel, crossram engine. The only time muscle cars triggered automatic premium increases was when they were new and expensive to replace.

Now, I am an old man (at least from your perspective) that owns 13 cars, which are all insured by a single, top-named insurance company. The four newest vehicles are considered daily-drivers. My nine old Chryslers are considered Classic cars. I pay more insurance premium on one daily driver than I do for the nine Chryslers combined. But then again, the Chrysler hardly ever move. Plus, I would not be allowed to have the Classic Car policies if I didn't have at least three daily drivers, since there are three licensed drivers in our household now.

There is some food for thought for all of you out there.