what you need to know about Classic Car Insurance
Owning a classic car is more than a hobby — it’s a passion and an investment. Whether it’s a beautifully restored 1965 Mustang or a rare European import, your vehicle deserves more than standard coverage. That’s where classic car insurance comes in — a specialized policy designed to protect collectible vehicles with unique coverage terms.
Unlike typical auto insurance, these policies often provide agreed value coverage, flexible mileage limits, and coverage for restoration parts. If your car is more than just transportation, then this guide is for you.
To better understand how this insurance works, you can explore the National Association of Insurance Commissioners for a regulatory perspective on what defines a collector vehicle and how it should be insured.
And before you set a value for your vehicle, use the Hemmings Valuation Tool to get a reliable estimate of your car’s worth based on the current collector market.
What Is Classic Car Insurance?
Classic car insurance is a specialized form of auto coverage designed for older, collectible, or limited-use vehicles. These policies differ from regular auto insurance in the following ways:
- Agreed Value: You and the insurer agree on the car’s worth, and you’re paid that amount in case of a total loss.
- Limited Use: The vehicle is driven rarely, often to shows or leisure rides, not for daily commuting.
- Storage Conditions: The car must be stored securely, usually in a locked garage.
- Custom Coverage: Includes protection for spare parts, restoration, and appreciation in value.
What Cars Qualify for Classic Car Insurance?
To qualify for this kind of coverage, your vehicle typically needs to meet certain criteria. Most insurers require:
- Minimum age: Usually 20–25 years old
- Good or restored condition
- Not a daily driver
- Garage-kept or stored safely
- Classic, antique, vintage, or collectible status
Many policies also cover exotic, kit, or custom-built cars, provided they meet the usage and condition requirements.
How Does Classic Car Insurance Work?
The most important aspect is agreed value coverage. Unlike traditional insurance that pays actual cash value (depreciated), classic insurance locks in an agreed-upon amount. If your car is damaged or totaled, you receive that amount — no depreciation.
Other key features include:
- Mileage limits (e.g., under 7,500 miles/year)
- Restrictions on daily use
- Specialized claims handling
- Flatbed towing & roadside assistance options
What Coverage Options Are Available?
A standard classic car policy may include:
- Liability coverage (required by law)
- Collision and comprehensive for physical damage
- Spare parts coverage for hard-to-find components
- Restoration coverage for in-progress rebuilds
- Roadside assistance tailored for vintage cars
- Coverage during transport or exhibition
How Much Does Classic Car Insurance Cost?
Premiums are often lower than standard auto insurance due to the lower risk and mileage. Your rates depend on:
- Agreed value
- Driver history
- Location and storage
- Annual mileage
- Vehicle make, model, and rarity
Typical premiums range from $200 to $600 per year, though exotic vehicles or very high-value classics may cost more.
Top Classic Car Insurance Providers
Here’s a brief comparison of reputable classic car insurers:
| Provider | Highlights |
|---|---|
| Hagerty | Agreed value, roadside, show coverage |
| Grundy | Unlimited mileage, garage storage required |
| American Collectors | Restoration & spare parts benefits |
Each provider specializes in collector vehicles, offering tailored policies not found in standard insurance companies.
Tips to Save on Classic Car Insurance
You can reduce your premium with the following strategies:
- Join a classic car club for member discounts
- Install anti-theft systems
- Store your car in a secure, locked garage
- Limit driving to shows, parades, and casual drives
- Maintain a clean driving record
Common Misconceptions
Let’s clear up a few myths about classic car insurance:
- Myth: Any old car qualifies — False: It must meet specific criteria.
- Myth: It’s more expensive — False: Often cheaper due to limited use.
- Myth: It works like standard auto insurance — False: It has unique terms like agreed value and mileage caps.
Classic Car Insurance vs. Standard Auto Insurance
| Feature | Classic Insurance | Standard Insurance |
|---|---|---|
| Valuation | Agreed value | Depreciated value |
| Mileage | Limited | Unlimited |
| Usage | Leisure, shows only | Daily driving permitted |
| Storage | Secure facility required | No requirement |
| Premium | Often lower | Based on age and mileage |
Frequently Asked Questions (FAQs)
What makes a car “classic” for insurance?
A vehicle that is 20+ years old, in good condition, used infrequently, and stored securely typically qualifies.
Can I drive my classic car every day?
No. Classic car policies usually prohibit daily commuting. Usage is limited to events or casual leisure.
Is classic car insurance cheaper?
Yes, due to limited mileage and lower risk factors, it’s often less expensive than standard insurance.
What is agreed value?
This is the value you and the insurer agree upon when the policy starts. If your car is totaled, you get the full agreed amount.
Do policies include roadside assistance?
Many do, but it’s tailored for classic vehicles, including flatbed towing and specialized service.
Final Thoughts
If you treasure your collectible car, don’t leave it underinsured. Classic car insurance offers the perfect blend of value protection, low cost, and specialized benefits for vehicles that are more than just transportation.
By selecting the right provider and coverage options, you ensure your car gets the attention and protection it deserves — on and off the road.