Owning a classic car is more than just having a vehicle—it’s preserving a piece of automotive history. But insuring a vintage ride isn’t the same as covering your daily driver. Special insurance policies exist to protect classic cars based on their unique value, limited use, and collectible status. Let’s explore how classic car insurance works and why it’s different from standard policies.
Why Classic Cars Need Special Insurance
Traditional auto insurance is designed for cars that depreciate over time. Classic cars, on the other hand, often appreciate in value, making them a unique financial asset. Regular insurance won’t account for this, which is why specialized collector car insurance exists.
What Qualifies as a Classic Car?
Insurance companies define “classic” and “vintage” cars differently, but common criteria include:
✔ Age: Usually at least 20–25 years old (some policies start at 10 years for rare models).
✔ Condition: Well-maintained, often restored or preserved rather than heavily modified.
✔ Limited Use: Driven only for car shows, exhibitions, or occasional pleasure drives—not a daily commuter.
✔ Storage Requirements: Typically required to be garaged or stored securely.
Types of Classic Car Insurance Coverage
1. Agreed-Value vs. Actual Cash Value
Unlike standard insurance, which pays based on depreciation, classic car policies use “agreed-value” coverage.
- Agreed-Value Policy: You and the insurer determine the car’s value upfront, so if it’s totaled, you get that full amount.
- Actual Cash Value (ACV): Standard policies only pay market value minus depreciation, which often undervalues classics.
🚗 Example: A 1967 Ford Mustang may be worth $50,000 to collectors, but a standard policy might only pay $10,000 due to depreciation.
2. Collector Car Coverage Add-Ons
Classic car insurance often includes extra protections that standard policies don’t:
✅ Spare Parts Coverage: Many insurers cover expensive vintage parts, which can be hard to find.
✅ Restoration Insurance: Covers your car while undergoing repairs or restoration.
✅ Flexible Mileage Limits: Some policies allow limited driving, while others offer unlimited pleasure use.
3. Liability & Collision Coverage
Classic cars still need liability and collision coverage, but premiums are usually lower than regular cars because they’re driven less.
How Much Does Classic Car Insurance Cost?
Classic car insurance is often cheaper than standard auto insurance because vintage cars aren’t driven daily. Costs depend on:
🔹 Car’s value (higher value = higher premiums)
🔹 Storage conditions (secure garages lower costs)
🔹 Driving frequency (limited-use policies save money)
🔹 Driver’s age & record (experienced, safe drivers get better rates)
💰 Example: A standard car insurance policy for a modern sedan might cost $1,500/year, while classic car insurance for a 1960s muscle car could be just $500–$1,000/year due to limited driving.
Where to Get Classic Car Insurance?
Several insurers specialize in classic and collector car coverage, including:
🏁 Hagerty – Well-known for agreed-value policies and restoration coverage.
🏁 Grundy – Offers unlimited mileage for pleasure driving.
🏁 American Collectors Insurance – Includes spare parts and roadside assistance.
🏁 GEICO & State Farm – Offer classic coverage, but often with mileage restrictions.
Key Takeaways: Do You Need Classic Car Insurance?
✔ If you own a rare, collectible, or restored vintage car, regular insurance won’t cover its full value.
✔ Agreed-value policies protect your investment from depreciation.
✔ Premiums are often lower than standard policies due to limited driving.
✔ Specialty insurers offer custom coverage tailored to classic car owners.
If your classic car is more than just a hobby, specialized insurance is a must to protect its value and legacy.