What Is Classic Car Insurance?
Classic car insurance is a specialty type of auto insurance for vehicles that are at least 10 years old and have some sort of historical significance. Classic auto insurance can be used to cover antique, exotic, and super-performance vehicles that are generally used for exhibition purposes, rather than commuting.
Classic car insurance companies have stricter requirements than normal. For example, many companies require classic vehicles to be stored in enclosed and locked structures when not in use. Young drivers or those with recent at-fault accidents may have a harder time finding coverage from classic car insurance companies, too.
Learn more about what classic car insurance is.
What Is Considered a Classic Car?
Cars that are at least 20 or 25 years old and in a well-maintained condition may qualify as classic cars for state registration purposes, although each state has slightly different rules. On the other hand, classic car insurance companies may accept vehicles that are between 10 and 20 years old. Classic car insurers usually require that the vehicle has some sort of historic interest or is a collectible, too.
In addition, insurers and state vehicle registration regulations usually place mileage limits on classic cars, so they cannot be used for everyday driving. Some states also require that you have another vehicle registered in your name to ensure you will not be driving the classic car daily.
Classic Car Insurance Qualifications by Company
| Insurer | Requirements |
|---|---|
| State Farm | Must be at least 10 years old and have historic interest |
| American Family | Must be at least 20 years old and a rarity because of unique design (replicas of classic vehicles can also qualify) |
| GEICO | Must be at least 25 model years old (newer exotic, collector, and replica vehicles can also qualify) |
| Progressive | Must be registered as a classic car |
| Allstate | Vehicle must have collectible value |
| Hagerty | Vehicle must be a 1979 model or older |
Learn more about what qualifies as a classic car.
What Does Classic Car Insurance Cover?
Classic car insurance covers many of the same things as a standard full coverage policy, providing protection for car accidents as well as non-accident related damage, and covering the policyholder regardless of fault. Insurance for classic cars usually includes at least the state mandated amount of liability insurance, as well as comprehensive, collision, and uninsured motorist coverage. Classic car insurance policies also include any coverage the state requires like personal injury protection or MedPay. However, most classic car insurers will not offer a liability-only policy.
Collector car insurance policies include specialized coverage designed just for classics, exotics, and super-performance vehicles. For example, many classic car insurers have a team of specialists to help with repairs and sourcing parts, as well as coverage for spare-parts expenses.
Additional Components of Classic Car Insurance Coverage
- Full-service emergency roadside assistance
- Spare-parts-and-tools coverage
- Inflation protection if the car is totaled
- Special coverage during restoration
Bear in mind that not all classic car insurance policies will have all of these features.
How Much Does Classic Car Insurance Cost?
Classic car insurance costs $400 to $1,000 per year, on average. Insurance for classic cars is typically much cheaper than normal car insurance policies because classic vehicles spend less time on the road, creating less of a risk for the insurer.
Most classic car insurance policies are based on the agreed upon value of the vehicle rather than the car’s mileage, age, and safety features. A higher value vehicle will likely require higher insurance limits, resulting in a higher premium.
Learn more about how much classic car insurance costs.
Classic Car Insurance Costs by Company
- Grundy: 50%+ less than standard car insurance
- Hagerty: up to 36% less than standard car insurance
- American Collectors: up to 40% less than standard car insurance
- Nationwide: up to 43% less than standard car insurance
- Heacock Classic: up to 40% less than standard car insurance
Learn more about how much classic car insurance costs.
Do I Need Classic Car Insurance?
You may need classic car insurance if you own a vehicle that: 1) is at least 20-25 years old, 2) has a high value due to its rarity or historical significance, and 3) is not used for everyday driving. Classic car insurance generally provides better coverage for these types of vehicles than ordinary car insurance policies.
Classic cars have unique characteristics that distinguish them from regular vehicles, and classic car insurance policies are designed to cater to these needs. For instance, classic car insurance often provides specialized coverage for things like spare parts, restoration work, inflation protection, and work by specialized repair shops.
Benefits of Classic Car Insurance
- Lower premiums. Because classic cars are typically driven less and maintained better than ordinary cars, they are considered low risk by insurance companies. This can result in lower premiums for classic car insurance than ordinary policies.
- Flexible repair options. Classic car insurers may offer options for repairs that differ from those provided by standard auto insurance policies. For example, you can purchase OEM parts coverage with your classic car insurance, which helps ensure that only parts from the original manufacturer of your classic vehicle are used for repairs.
- Specialized coverage options. Classic car insurance policies often include coverage for things like spare parts and restoration work.
- Coverage for the agreed-upon value. You and the insurer will agree on the value of your classic car, so you will have the opportunity to advocate for what your classic car is worth. If your car is stolen or totaled, you’ll receive a payout for the agreed value, rather than the actual cash value (ACV) that ordinary car insurance policies typically provide.
To find the best coverage for your specific classic car, you can compare rates and coverage options from popular insurance companies offering classic car insurance.
Classic Car Insurance Costs by Company
- Grundy: 50%+ less than standard car insurance
- Hagerty: up to 36% less than standard car insurance
- American Collectors: up to 40% less than standard car insurance
- Nationwide: up to 43% less than standard car insurance
- Heacock Classic: up to 40% less than standard car insurance
Learn more about how much classic car insurance costs.
How to Get Classic Car Insurance
1. Shop for the Best Policy
Most major insurance companies offer classic car insurance through a partnership with a specialty insurer. It is recommended that you request quotes from at least three insurance companies and compare them before making a decision. Be advised that since classic car insurance is a specialty type of insurance, you may have to call or see a local agent or broker for quotes.
Best Classic Car Insurance Companies
| Company | Best For |
|---|---|
| Hagerty | Best for Automobile Enthusiasts |
| State Farm | Best from Standard Insurer |
| Safeco | Best for a Frequently-Used Car |
| Heacock Classic | Best for a Race Car |
| American Collectors | Best for Add-On Options |
Learn more about the best classic car insurance companies.
2. Consider Discounts
When you compare quotes, you should also take into consideration possible classic car insurance discounts. Some insurers may offer discounts for being a member of a specific car club or for having multiple cars insured with them, for example.
Common Discounts for Classic Car Insurance
| Discount | How To Qualify |
|---|---|
| Anti-theft devices | Having a qualifying anti-theft device on your car, such as LoJack |
| Car club membership | Belonging to a qualifying collector car club |
| Security discount | Having an approved security device installed in your garage |
| Switching insurers | Switching to a different classic car insurer |
| Multi-car discounts | Insuring several cars on the same policy |
| Defensive driving course | Taking an approved driving safety course |
| Multi-policy discount | Purchasing multiple types of insurance from the same company |
3. Look for Benefits
Many classic car insurance companies offer great benefits like an inflation guard to increase your coverage automatically and protect your car as it increases in value. Others offer assistance for finding rare parts and have networks of auto shops if you need help with some repairs.
4. Consider Your Individual Needs
Remember to tailor your insurance plan to fit your driving habits, your car’s value, and your budget. An insurance policy for a 1970 Datsun 240Z will not be the same as one for a 1961 Mercedes 300SL, for example.
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