Classic car insurance

What is classic car insurance?

Classic car insurance offers liability, collision, and comprehensive coverage. It pays out if you injure someone or damage their property. It can also protect your vehicle if you’re involved in an accident or if something damages your car (such as hail). The amount of coverage is key, taking into consideration costs if you need to file a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing..

Classic car insurance differs from standard car insurance in a few ways. It is based largely on the car's value, as these vehicles tend to appreciate if properly cared for and driven only occasionally.

"The collector car should be under a roof," says Jill Bookman, CEO of Cherry Hill, N.J.-based American Collectors Insurance. "This is the fun car that stays in the garage for the most part, the sentimental car. It's not something you would use on a regular basis." This means classic cars don’t require the same coverage as your everyday car, Brookman says.

You and your insurance company will look at a few different factors and then decide what kind of coverage you need and how much of it. These factors are:

The value of the car. This is calculated taking into consideration that classic and collectible cars usually appreciate rather than depreciate like regular cars.

How much you plan to drive the car. Many owners keep their car safely garaged most of the year and only drive it on special occasions.

Where the car will be stored. Where you live, and the weather and crime in your area, also will play into costs.

You’ll want to find an insurance company familiar with this type of vehicle.

"Anyone with a classic car needs to approach insurance as a specialized product, probably from a specialized insurer," says David Snyder, vice president and associate general counsel for the American Insurance Association trade organization.

What are the types of classic car insurance coverage?

There are three kinds of coverage available for classic cars, Bookman says. They are:

• Actual cash value. This is the most common type of coverage for all cars, largely because many classic car owners are unaware of more appropriate policies for such vehicles, Bookman says. In the event of a claim under an actual cash value policy, the value will be depreciated and you will pay a deductible, she says.
• Stated value. With these policies, insurers must pay up to the stated amount of the car’s value. In some cases, the insurance company may pay less, says Jonathan Klinger, spokesman for Hagerty Insurance, a classic car insurance company based in Michigan.
• Agreed value. In the event of a total loss, the insurance company is on the hook for the entire amount agreed upon by the company and the policyholder. "The value is established upfront," Bookman says. "It provides the collector with real peace of mind."

What does classic car insurance cover? 

Classic car insurance covers many of the same things as standard car insurance, such as:

Liability. This applies if you injure anyone or damage their property in an at-fault accident, including lawsuits.

Collision. This covers accident-related damage to your vehicle in the event of an accident or if you strike a stationary object like a mailbox.

Comprehensive. This covers damage to your vehicle that is not sustained in a collision, such as a rock hitting your windshield or acts of vandalism.

Uninsured/underinsured motorist. If you are involved in an accident with an uninsured motorist or one whose policy is inadequate, this is an added layer of protection.

Personal injury protection. PIP covers medical bills and lost wages for you and your passengers if you’re in an accident.

Talk with your insurer about these types of coverage to ensure you have what you need. Then, decide on what is the car worth. Will you go for actual cash value, stated cash value, or agreed value? 

Remember, one key difference between a regular car and a classic car is that classics retain their value or appreciate over time. This value will factor into the amount of collision and comprehensive coverageComprehensive coverage helps pay for damage to your car caused by events other than a collision, such as theft, fire, vandalism, or natural disasters. It is subject to a deductible. you purchase. 

What is not covered by classic car insurance? 

A classic car insurance policy has the same exclusionsItems that are specifically denied coverage under the terms of an insurance policy. For example, most auto insurance policies exclude coverage for normal wear and tear, drag racing and intentional acts. as any other car insurance policy. You’re not covered for anything above the policy limits or for anything listed as an exclusion.

Classic car insurance generally excludes any car that is driven regularly. This is not insurance for the everyday vehicle. Some insurers won’t cover you if you drive more than 7,500 miles a year. Depending on the insurer, you sometimes can’t get classic car insurance unless you have maintained a clean driving record for at least five years. 

If you use your car for racing, it probably won’t be covered by classic car insurance. If your car isn’t stored properly, it might not be covered. Be sure to go over all the details with your insurance company, including how and when you will use the vehicle, where and how it will be stored, how many miles it will be driven, and how you plan to care for it.  

Classic car insurance criteria: Which cars are eligible for classic car insurance?

The following types of cars are generally eligible for classic car insurance:

• Cars over 25 to 30 years old
• Vintage fire trucks and emergency vehicles
• Unique vehicles from movies or TV shows
• Newer exotic, expensive or one-of-a-kind cars

One of the most important components is not just the age of the vehicle but how it is cared for and stored. Your insurance company will want to know where it will be garaged and how much time it will spend on the road, if any.

If you have a unique or collectible vehicle, ask your insurer if it qualifies for classic car insurance.

Classic car insurance companies

Many major insurance carriers offer classic car insurance but do not underwrite it directly. They will outsource it to companies that specialize in this type of insurance. The companies below specialize in classic car insurance and underwrite policies directly.

Hagerty

Hagerty offers various insurance policies to cover many types of classic cars, other collectible vehicles, and even boats and yachts. It also offers financing for classic vehicles. Hagerty also offers an array of additional options, including vehicle-under-construction coverage; traveling collector coverage; and spare parts, automotive tools, and automobilia coverage. 

Grundy

Grundy offers the option to insure all your vehicles – classics and daily drivers – under one comprehensive policy called their Motor Vehicle Program (MVP). It also offers coverage for other types of non-automotive valuables, like antiques.

State Farm

State Farm insures classic and antique cars. It defines classic cars as 10 to 24 years old with historical interest and antique cars as over 24 years old with historical interest. State Farm offers $500 towards spare parts relief as part of its coverage. In Arizona, Connecticut, Illinois and Indiana, State Farm classic car insurance is called Classic +. 

American Collectors

American Collectors has been around since the 1970s and offers spare parts coverage, inflation guards, safety discounts, flexible mileage plans, and multi-vehicle discounts, among other features.

J.C. Taylor

J.C. Taylor offers car insurance for antique and classic cars, vintage luxury cars, muscle cars, and hot rods. It offers agreed-value policies and can help you determine the value of your classic or collectible vehicle.

Chubb

According to its website, Chubb’s classic car insurance typically covers vehicles that are at least 30 years old, part of a larger vehicle collection, or from a limited production run. Vehicles must be garaged and used for hobby purposes only, including car shows, exhibitions, car club activities, and parades. Unlike some other insurers, Chubb doesn’t impose a mileage limit.

Regular vs. classic car insurance: Differences

Classic car insurance overlaps with standard car insurance in some areas and differs in others Take a look at the table below.

*unless you do not meet the company’s requirements

Colorado classic car collector Andy Martin chose classic car insurance over standard insurance for his three classic Volkswagens mainly due to the cost and coverage. 

“[It was] cheaper than regular car insurance as it assumes it’s not being used for daily use or commute,” Martin says. 

He insures a 1965 Volkswagen Bus, a 1968 Volkswagen Karmann Ghia, and a 1958 Volkswagen Beetle with Hagerty for a total annual cost of $609, with policies that cover his vehicles for “negotiated and guaranteed repair or replacement value,” Martin says, ensuring he’ll get what they are worth if something happens.

Classic car insurance requirements

Insurers who specialize in classic car insurance will most likely require the following:

• The car is kept in good condition to retain its value.
• The car is stored properly in a safe, secure location protected from the elements.
• The car is not driven regularly, and another car is on record for daily use.
• The owner/insured has a clean driving record.
• Some insurers impose a 25-year-old age minimum.

How to save on your classic car insurance

You can save on classic car insurance by:

• Shopping around. Compare quotes from several companies to see which is cheaper.
• Raising your deductibles. Higher deductibles mean lower premiums.
• Bundling coverage. With some major insurance companies, you may get a bundling discount if you buy classic car insurance and other policies from the same company, even if another company underwrites the policy.

Source: 

Car and Driver. A Classic Car Owner's Guide to Insurance: Everything You Need to Know. Accessed January 2025.

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