The best way to insure a classic car is to tailor your insurance coverage to fit your specific vehicle and driving habits. Classic car insurance comes in many varieties, offering customized coverage options and perks like spare-parts coverage, inflation guard, and agreed-value policies. Furthermore, classic car insurance providers often have specific requirements for things like how often you drive a classic vehicle and where you store it.
To get the best classic car insurance for your situation, you should get quotes from multiple insurers and be on the lookout for discounts. You should also consider the various perks that often come with classic car insurance plans.
Common Classic Car Insurance Perks
Garage discount: Storing your vehicle in a locked garage lowers the chances it will be damaged or stolen and can lower your premiums. Some insurers may even require you to store your classic car in a garage to qualify for coverage.
Agreed value: The amount of coverage you get is based on the agreed-to value of your car.
Spare parts coverage: Protects you from theft of or damage to replacement parts up to a given dollar limit.
Inflation guard: Your car’s protection limits automatically increase as the value of your car increases.
No annual mileage limits: This rare perk allows you to drive your classic car for as many miles as you would like in a year without penalty. However, you cannot use the car for commutes or errands.
Ultimately, the best way to insure a classic car is to get a classic car policy that covers your specific needs. Different insurers offer benefits and discounts that depend heavily on what you will be using your classic car for.
Yes, insurance for a classic car is cheaper than normal car insurance in most cases because classic cars are driven less than regular cars and are thus a lower risk for insurance companies. Classic car insurance can even cost 50% less than a standard car insurance policy, depending on the insurer and the car.… read full answer
Classic car insurance is a specialty type of coverage that is only available for certain older vehicles and specific cars that have some historical or cultural value.
Why Classic Car Insurance is Cheaper
Classic cars can only be used for certain activities, like parades or car shows, as opposed to daily driving or commuting. This keeps their time on the road to a minimum, which lessens the risk of an accident and lowers the overall cost to insure them.
Classic car insurance costs are based on the classic car’s agreed value, or the value the policyholder and insurer agree upon, rather than an actual cash value.
Classic cars may not need the same types of coverage that normal cars require. For example, if a classic car is stored for an extended period of time or is being restored and isn’t in a usable condition, it may only need comprehensive coverage to protect it against any vandalism or natural disasters.
Classic car owners are less likely to make risky decisions when driving, since they put so much time and money into their cars, which in turn creates less risk for the insurance company.
It is important to remember that classic car insurance is only cheaper when compared to a comparable policy on a normal car. For example, many classic car insurance policies are full coverage and may be more expensive than a minimum coverage policy for a standard vehicle.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.