What is Classic Car Insurance?

Classic cars aren't merely cars but valuable pieces of history. You may have an old Mustang or even a flashy Corvette; whatever it is you own, you will have to get it insured by getting classic car insurance. 

Classic car insurance is not like your regular car insurance. It's to cover collectibles that aren't driven much. In this article, we'll be discussing what classic car insurance is, what it insures, why it's necessary, and what you'll require to get the best classic car insurance.

To attract the best classic car insurance, the car must be in good condition. Before buying a classic car, always check the history report for salvage titles, accidents, unpaid loans, and more.

How Does Classic Car Insurance Work?

Classic car insurance is specialty auto insurance for vehicles that aren't on the road every day. It's for vehicles driven from time to time, to a parade or to attend an auto show. These vehicles get driven fewer miles and maintained in better condition, and this is why classic car insurance is usually less expensive than regular car insurance.

To qualify and know how old to get classic car insurance, the car should be 10 to 25 years or older, depending on the insurance company. It should be in excellent or fully restored condition. You will also be required to own a second everyday-use vehicle for your day-in-day-out driving.

Here, your classic vehicle's usage frequency, in-garage storage, and driving history all come into consideration.

Classic Car Insurance vs. Regular Car Insurance

Classic car insurance is not like regular car insurance. It is for classic cars driven fewer miles, such as to shows, or to specific events, or on weekends. Here’s what makes them different:

Usage

Classic car insurance is meant for cars that are not driven daily. These cars are usually driven just a few times a year or during events. Regular car insurance, on the other hand, is for cars used every day for commuting, errands, and regular travel. This difference affects how insurers set premiums and coverage rules.

Vehicle Value

Unlike regular insurance, where the vehicle’s value goes down over time (called depreciation), classic car insurance uses an agreed value. This means you and the insurer decide how much the car is worth when the policy starts. If something happens to the car, you’re paid that full amount—no questions asked.

Premiums

Because classic cars are used less and kept in safer conditions, their insurance premiums are usually much lower. Regular cars are more exposed to risks, so their insurance rates tend to be higher.

Mileage Limits

Classic car insurance usually has a set mileage limit per year, such as 2,500 to 5,000 miles. If you go over, your coverage may be affected. Regular car insurance does not have such limits, as those cars are expected to rack up more miles.

Repair Options

Classic car policies often let you choose your own mechanic or body shop, especially ones experienced in vintage restorations. Regular car policies may limit where your car can be repaired, often choosing from the insurer’s preferred repair network.

READ ALSO: What to Know Before Using Classic Cars as a Daily Driver

What are the Classic Insurance Requirements?

You and your car must satisfy some conditions to be eligible for classic car coverage. These requirements enable the insurer to ensure they're insuring genuine collector vehicles in the right hands.

Vehicle Age

Most insurers require your car to be at least 10 to 25 years old, though some accept newer models if they are rare or have collectible status. The car should also be in good, original, or restored condition. Some policies may even cover modern replicas if they meet other criteria.

Limited Driving

Your car should not be used for everyday driving. It must only be driven occasionally, such as to car shows, parades, club events, or for maintenance. Using it for commuting or errands will likely disqualify it.

Garage Storage

To protect your classic, insurers want it stored securely when not in use. This means keeping it in a locked garage, covered storage unit, or enclosed carport. Open driveway parking or street parking is usually not accepted.

Good Driving Record

You need a clean or nearly clean driving history to qualify. Insurance companies want to make sure you're a safe and responsible driver. Too many tickets, at-fault accidents, or a DUI could get your application rejected.

Own a Daily Driver

You must have a separate, everyday car for regular use. This proves that the classic car is not your main mode of transportation. You’ll need to show proof of ownership or lease of a primary vehicle.

Proof of Value

Many insurers will ask for documentation to verify your car's worth. This could include photos of the vehicle, recent appraisals, restoration records, or classic car valuation guides. This helps both sides agree on a fair insured value.

READ ALSO: How to perform an Old Car VIN lookup

Why Do I Need Insurance on My Classic Car?

Classic vehicles are worth thousands—sometimes hundreds of thousands—of dollars. You've worked on it yourself or bought it as an investment, and you don't want to lose your car. Accidents, theft, and damage caused by storms are all risks that might happen at any moment.

Classic car insurance protects against those risks and maintains your car's worth. You can lose all the money you spent if you're not covered. It also gives you peace of mind when you're driving it to events or competitions.

What’s Covered in a Classic Car Insurance Policy?

Classic car insurance is aimed at protecting your car in the way that it should be. It gives you more specific coverage than regular car insurance. This is what's usually included in a standard policy:

Agreed Value Coverage

With this feature, you and your insurance company agree on your car's value when the policy starts. If the car is stolen or totaled, you get the full agreed-upon amount, without depreciation. This is crucial for protecting collectible value that may go up over time.

Collision Coverage

If your car is involved in an accident, this coverage helps pay for repairs, no matter who was at fault. It’s especially useful for classics because parts and repairs can be expensive and hard to find.

Comprehensive Coverage

This protects against damage not caused by an accident. Things like fire, theft, vandalism, falling trees, floods, or even animals are covered. Since classics are often stored long-term, this coverage is especially important.

Liability Coverage

This pays for damage or injuries you cause to others in an accident. It covers the cost of medical bills, property damage, and even legal fees if someone sues you. Even though you drive your classic less, you still need this protection.

Uninsured/Underinsured Motorist

If you’re hit by someone who has no insurance or not enough insurance to cover your damages, this coverage helps make up the difference. It ensures you're not left with the bill.

Roadside Assistance

Some policies offer special towing and roadside help for classic cars. This includes flatbed towing (to avoid damage), jump-starts, fuel delivery, or lockout assistance. It's designed for vintage cars that may be more fragile than modern vehicles.

What’s not covered:

Classic car insurance generally won’t cover damage from racing, commercial use (like delivery or rideshare), or daily driving. Also, parts that aren't original or not listed in your policy might be excluded unless documented ahead of time.

How to Get Classic Car Insurance?

It is an easy process to insure a classic car, but it requires a bit more paperwork and detail than insuring an ordinary car.

Check Your Eligibility

Ensure that your car complies with classic car standards in terms of age, condition, and usage prior to submitting an application. You will be required to prove you have a day-use car and suitable storage.

Choose an Insurance Company

Look for collector or classic car insurance providers. Insurers like Hagerty, Grundy, and American Collectors understand the requirements of classic car collectors. These insurers offer flexible policies, agreed value coverage, and other benefits characteristic of classic cars.

Obtain a quote

You will have to provide information about your car: year, make, model, condition, pictures, storage type, and usage frequency. The information will be used by the insurer to provide you with a personalized quote.

Agree on a Value

You and the insurance company will agree on how much the car is worth. That is how much will be paid in case the car is stolen or wrecked. Appraisals or market value guides will decide the amount.

Purchase the Policy

After all that is approved, read the policy details attentively, then pay for your coverage to take effect. Keep your documents safe and drive your classic with confidence.

How Is a Classic Insurance Quote Determined?

Several key factors help determine how much you'll pay for your classic car insurance. Here's a breakdown:

Vehicle's Agreed Value

The more valuable your car is, the more you will pay. High-end classics like Ferraris or classic Corvettes may be more expensive to insure than standard models. The insurance company will consider how much that would cost them if it were to be totaled.

Age of Vehicle and Condition

Well-preserved or fully restored vehicles will cost more to cover because they will be worth more. However, they will be eligible for better rates if stored properly and not driven much. The condition provides the insurer with an opportunity to assess replacement value and risk.

Mileage restrictions

Policies for reduced annual mileage tend to be less expensive. The fewer miles you cover in your classic, the fewer opportunities for accident, breakdown, or wear and tear, lowering costs to the insurer.

Storage Type

Parking your car in an enclosed garage or locked building minimizes theft or damage caused by weather. Cars parked in an open driveway or street may be pricier to cover, or not covered at all.

Location

Your quote is zip-code based. Living in high-crime neighborhoods, flood areas, hurricane areas, or earthquake areas can increase your rate. Where it is safer to drive and crime is low, discounts may be offered.

Driver History

A spotless driving history qualifies you for reduced premiums. If you've had several accidents, tickets, or claims, the insurance company will charge you extra or not insure you at all.

Conclusion

Classic car insurance is the best way to protect your vintage ride. It’s made for your car’s special value and limited use. While it’s cheaper than regular insurance, it also gives more tailored protection. If you own a restored muscle car or a vintage roadster, the right coverage keeps your investment safe.

To get insured, your classic must be in good condition and must not have any title problems. Before buying a classic car, always check the classic vehicle history report. This will show if the car has a salvage title, theft records, or unpaid loans that may disqualify it from getting the best classic car insurance.