While most cars depreciate in value over time, classic cars typically become more valuable with age, but that’s not the only difference between modern and classic cars. Insurance requirements also vary.
Note that the standard auto policy isn’t likely to meet the needs of classic car owners. You need a specific type of classic car or collector car insurance policy.
Classic cars are an investment. Collectors often spend a significant amount of time and money restoring them to pristine condition, a project that requires expensive, hard-to-find parts and high-quality materials.
Classic car insurance, or “collector auto insurance” (as some call it), is a special type of insurance policy that provides car collectors with extended-value coverage to reflect the actual cash value of a restored classic car.
The best classic car insurance policies offer customizable coverage, agreed value options, spare parts coverage, and no annual mileage limits. If you’re a car collector or own a classic car, you need to know about the benefits of insurance for collector cars and the best policies available.
What Is Classic Collector Car Insurance?
Classic car insurance coverage provides full auto coverage that reflects the actual cash value of a restored classic vehicle. Sometimes called vintage car insurance or antique car insurance, these policies typically provide collision and comprehensive coverage along with base coverage on the agreed value of your classic car.
Insurance for collector cars is calculated differently than regular car insurance. Most cars depreciate in value over time. Regular auto insurance reflects this depreciation with lower coverage rates and premiums that reflect a vehicle’s age. Classic cars are over 25 years old, which would typically suggest they have low value. However, exotic cars, muscle cars, hot rods, and vintage cars all have different factors that increase their value. A carefully restored antique car holds more value than a 25-year-old daily driver. Insurers use industry-leading tools and your input (facts and photos) for determining your car’s value and underwriting a custom classic car insurance policy.
Collector car insurance is essential to avoid coverage gaps that might occur due to expensive replacement parts, unique requirements, and the value gap between worn-out vehicles and fully restored classic cars. Classic vehicles and collector cars may spend considerable amounts of time in car storage and often visit crowded events like car club gatherings, car-sharing meets, parades, and car shows. To protect your collector vehicle under these unique circumstances, you need full insurance coverage designed for classic cars.
How Do I Get Classic Car Insurance?
To get classic car insurance, contact an insurance company and request an auto insurance quote. Give them the details on your vehicle so they can determine if it is eligible for classic car insurance.
Insurance agents will help determine the best policy for your needs, considering the value and usage of your classic car or collection.
Car collectors typically invest in classic car insurance to insure a single classic car. Depending on how many vehicles a classic car collector owns and registers, they may be able to choose a single policy that covers an entire collection.
Is My Car Eligible for Classic Car Insurance?
Generally, cars that are at least 20-25 years old, maintained in good condition, and primarily used for exhibitions, parades, or occasional leisure drives qualify for classic car insurance rates.
Insurance companies may also require that the car be stored in a secure garage and that the owner have another vehicle for regular use. To confirm eligibility, contact your insurance provider with details about your car. You’ll need to know the make, model, and condition of the vehicle.
If you have specific questions like what will classic car insurance cover? Or are there any classic car insurance offers that you are eligible for? The insurance agent can help.
Top 5 Classic & Collector Car Insurance Providers
There isn’t a single insurance company that provides the best coverage for every type of classic or collector car. Note that some insurance companies don’t offer classic or collector insurance.
Finding the best classic car insurance for your unique vehicle requires careful research. As a first step, consider how often you use your vehicle. Some cars rarely go on the road, while others are regular-use vehicles Therefore, you may need to find another insurance provider to insure your classic car. These are the top 5 insurers of classic cars.
#1: Hagerty
Pro: Hagerty offers coverage for a wide variety of vehicles (classic cars, classic boats, classic trucks, classic motorcycles, etc.)
Dedicated to protecting classics, Hagerty boasts over two million protected classics (more than any other insurer). They protect all types of classic cars, boats, trucks, and more. Eligibility also extends to modern collectible vehicles, including race cars, replicas, motorcycles, tractors, and military vehicles.
Insurance for collector cars is based on an agreed-upon value. In case of a covered total loss, Hagerty cuts a check for that amount with no hassle or games. Spare parts coverage up to $750 comes included, and there are no fixed mileage limits.
Hagerty Drivers Club includes valuation tools, roadside assistance, and more. Policies are 21% lower on average than a daily driver auto insurance policy.
#2: American Modern
Pros: Flexible mileage plans and generous spare parts coverage.
With a variety of policies for collector cars, American Modern offers flexible mileage plans, including an unlimited option. Coverage is based on agreed value, providing total loss settlement with no depreciation over time. Policies cover classic cars, antiques, exotics, muscle cars, street rods, kit cars, custom cars, and more.
This insurance agency offers $2,000 in standard spare parts coverage, compared to the standard $500 offered by most companies. Coverage includes reimbursement for theft and damage along with other perks like inflation guard. Policies provide usage for car shows, parades, car club exhibitions, pleasure drives, and driving to work. Deductible options range from $0 to $10,000.
#3: Safeco
Pro: This insurance provider offers customers two options:
- Standard Use: Drive up to 10,000 miles a year (or about 27 miles a day)
- Limited Use: Drive up to 5,000 a year
While this company doesn’t exclusively focus on classic cars, Safeco covers classic cars that are at least ten years old, limited production modern classics less than ten years old, and antique cars at least 25 years old. However, the company doesn’t provide classic coverage for kit cars, racing cars, or unrestored vehicles.
#4: Grundy
Pros: No deductible is required (in most states), and Grundy offers a liability of up to $1,000,000
Specializing in insurance for collector cars since 1947, Grundy provides car collectors with 100% of a classic car’s value in the event of a total loss. Furthermore, coverage is never reduced for as long as you maintain your policy. Grundy insures most types of vehicles over 25 years old. They also insure muscle cars, exotic cars of all ages, and modified vehicles.
Coverage includes full comprehensive and collision, as well as liability up to $1,000,000. No deductible is required in most states. Coverage allows unlimited miles for pleasure driving, but the car cannot be used as a daily driver. Covered vehicles must be kept in an enclosed secure garage when not in use. However, trip interruption coverage provides reimbursement for hotel and repair costs in the event of a breakdown, along with towing and labor charges up to $250.
#5: J.C. Taylor
Pro: Tailored policies for antique and classic cars
As a well-known name among car collectors, J.C. Taylor has been insuring classic cars since the 1960s and sponsors the Antique Automobile Club of America (AACA). The insurance company provides tailored policies for antique and classic cars, vintage luxury cars, muscle cars, and hot rods with agreed-value policies. In the event of a covered total loss, policyholders are paid the vehicle’s agreed-upon value minus any applicable deductible.
Before You Go
Getting insurance for collector cars is considerably different from insuring your daily driver.
Not all insurance companies provide classic car insurance, which means you may have to seek an additional insurance provider to acquire the right type of insurance for your classic car.
Classic car insurance also comes with specific eligibility requirements. Insurers expect collector cars to be well-maintained and not used as daily drivers. Special storage requirements are often required as well. For example, insurers will likely require you to store your collector car in a locked garage.
Over 50% of car collectors have spent over $5,000 on car storage. Luckily, less expensive options are available to find safe storage for your classic car. Neighbor connects local car owners with property owners that have available storage space. With a simple search, you can find a space that meets your criteria and fits within your budget.
Visit our website to learn more about affordable classic car storage options with Neighbor.
FAQs
Are Classic Cars Cheaper to Insure?
Classic cars are typically significantly cheaper to insure than your daily driver because they often spend less time on the road. According to top insurers of classic cars, classic car insurance can be 20%-50% cheaper than the average daily driver policy. However, it’s important to recognize that these policies may include special eligibility requirements and annual mileage limits.
How Do Insurance Companies Value Classic Cars?
Representatives that provide insurance for collector cars use valuation tools and information from the car owner to identify an agreed-upon value for a classic car. Policies often pay out claims on a guaranteed-value basis, ensuring a full payout of the car’s total value.
Neighbor.com for Classic Car Storage
In addition to properly insuring your classic car, you also need to store it the right way. Owning a classic car is possible even if you don’t have your own garage space. With Neighbor, a peer-to-peer car storage marketplace, you’ll find car storage options for a fair price right in your own neighborhood. What’s better than having your classic car in your garage? Having it in your neighbor’s garage for a price less than 50% of traditional car storage.
