Q: Why does classic car insurance cost so much less than for regular cars? I'm about to buy my first collector car, a '54 Studebaker street rod. I'm in love! I've been looking around for the best price on classic auto insurance, and I'm amazed at how cheap it is.

A: Congratulations! Nice surprise, right? Actually, when you think about it, it makes sense that classic auto insurance should cost a lot less than the coverage you put on your daily driver. For one thing, it's a pretty sure bet you're not going to be driving your Studie all that much. Classic cars are usually driven only to car shows and rallies or for the occasional afternoon spin. So less driving = less chance of getting into an accident. Most of the time, that new beauty is going to be securely locked up in a nice safe garage where nothing bad can happen to her. While you'll still want the full array of auto insurance features--plus a few specialized ones designed to protect your investment--the chance that you'll make a claim against any of them is significantly smaller than with your regular car. And so you're rewarded with cheaper insurance rates.

You're being smart to shop around and compare quotes from different companies that specialize in classic car insurance. The savings can be very beneficial.

Source: http://www.classiccar.com/aci_fAQ.shtml