Classic car insurance: How to choose the right policy

What is classic car insurance and how does it differ from standard auto insurance?

Classic car coverage is a policy designed for a vehicle that is not used as a daily driver and that meets certain qualifications, such as age or collector status. It includes the same basic coverage as standard car insurance: liability, collision, and comprehensive coverage. However, while a standard policy pays out for a total loss based on the vehicle's actual cash value, classic car insurance uses a stated or agreed value. Standard car insurance doesn't limit how much you drive or where you store your car, but classic car insurance limits annual mileage and usually requires secure storage.

"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.

Regular vs. classic car insurance
Standard car insurance	Classic car insurance
Most drivers qualify for coverage	You generally must be 25 years old and have a safe driving record
Most cars qualify	Collectible cars of a certain age or profile are covered, such as antiques, unique or historic cars
No limits on mileage or use	There are mileage limits imposed; everyday use is not covered
Actual cash value coverage for the car	Stated value or agreed value coverage for the car
Includes liability, collision, and comprehensive; can add other coverages	Includes liability, collision, and comprehensive; can add other coverages
More expensive	Cheaper

How to choose classic car insurance

When choosing insurance for a classic, antique, or collector car, consider the car's value, how much you plan to drive it, and where you plan to store it. Then seek out a specialized insurance company

Consider these three factors that affect the type of policy you need:
- 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.
Request quotes from carriers that specialize in classic car insurance. Not every insurance company is able to write an agreed-value policy or offer the right coverage for a classic.

"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.

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.

People ask

Should I get classic car insurance?

Yes, if you own a classic, antique, or collectible vehicle that is worth more to collectors than the actual cash value suggests, or if the vehicle is rare or hard to repair or replace. Classic car insurance will protect your investment, while standard insurance may not cover your vehicle's full value.

What are the types of classic car insurance coverage?

There are three kinds of coverage available for classic cars, according to Bookman: actual cash value, stated value, and agreed value. You'll usually see actual cash value with a standard policy, while a classic-specific policy will use one of the other two options.

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, including liability, collision, comprehensive, uninsured/underinsured motorist and personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault.. Classic car policies also include towing and roadside assistance coverage that may be more comprehensive than a standard policy.

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.
Towing and roadside assistance. Classic cars often include coverage to tow your vehicle to and from various locations, such as shops for specialized work, but the coverage is usually limited by the number of miles. Unlike standard roadside assistance, a classic car may not need to be broken down or damaged to qualify for towing coverage.

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. on a classic car policy will pay out in accordance with the terms outlined on the policy in the event of a total loss. Because the value may change as a classic car appreciates over time, you should review it with your carrierAn insurance carrier is the company that provides your car insurance policy and pays claims. regularly.

What is not covered by classic car insurance?

Classic car insurance doesn't cover cars that are driven regularly, racing or other illegal activity using the vehicle, or cars that are not stored in accordance with the policy's terms.

Any car that is driven regularly. Some insurers won’t cover you if you drive more than 7,500 miles a year and limit where you can drive the car; it can't be your daily driver
Racing. Classic car insurance doesn't cover cars used for racing.
Cars not properly stored. If your car isn’t stored properly, it might not be covered.

Depending on the insurer, you may not be able to get classic car insurance unless you have maintained a clean driving record for at least five years. Be sure to review all the details with your insurance company, including how and when you will use the vehicle, where and how it will be stored, the number of miles it will be driven, and how you plan to maintain it.

Which vehicles qualify for classic car insurance?

Vehicles that meet age requirements (25 to 30 years old), are special, vintage vehicles like fire trucks, are unique in some way, such as having been used in a movie, or are exotic, rare, or one-of-a-kind can get classic car insurance.

Generally, your vehicle will qualify if:

It is over 25 to 30 years old
It is a vintage fire truck or emergency vehicle
It's a unique vehicle from a movies or TV show
It's newer, but is exotic, expensive, or one-of-a-kind

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

People ask

When does a car become a classic for insurance?

A car that is 25 to 30 years old is generally considered a classic. However, newer but unique vehicles, such as cars from movies or television or replicas of older vehicles, can also qualify. Every carrier sets its own guidelines.

Top insurance companies for classic car coverage

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.

People ask

Do antique cars need insurance?

Yes, antique cars need insurance. Whether you drive them or not, you should protect your investment from the weather, theft, and other types of damage or issues. If you drive them on the road at all, you must meet state insurance requirements.

Classic car insurance requirements

Insurers who specialize in classic car insurance usually require that the car be maintained and properly stored and is not driven on a regular basis. There may also be driver requirements, including age and a clean driving record.

These are common classic car insurance requirements:

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 for the insured.

How to save on your classic car insurance

You can save on classic car insurance by shopping around, raising your deductible, and bundling with other insurance policies.

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.

FAQ: Classic car insurance

Is classic car insurance cheaper than regular insurance?

Yes. Classic car insurance tends to be cheaper than standard car insurance because you don’t drive classic cars very often. Premiums may be as much as 40% less than regular car insurance, according to American Collectors Insurance. Individual pricing will vary depending on your situation.

How much is classic car insurance?

On average, a classic car policy is between $150 and $900 a year for vehicles up to $100,000 in value, according to Bridgeway Insurance, but this can vary widely depending on the type of car you own, where you live, and how much coverage you want to purchase. Classic car insurance tends to be cheaper than standard car insurance because you aren’t driving your classic car daily. Therefore, it’s less risky to an insurer, and that means they charge you less.

Can newer vehicles qualify for classic car insurance?

Yes. A newer vehicle may qualify for a classic or collector car policy; this usually applies to modified, exotic, high-value or rare vehicles. Eligibility varies by company.