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A classic car insurance policy covers vehicles like antique cars and muscle cars that goes beyond coverage provided by a traditional car insurance policy. Classic car insurance typically costs less than regular car insurance but generally comes with certain restrictions.
What Is Classic Car Insurance?
Classic car insurance goes beyond regular car insurance to protect high-value vehicles that fit into the classic category.
These may include:
- Antique and classic cars that typically are at least 20 years old (although this number varies from one car insurance company to another)
- Hotrods
- Modified vehicles
- Exotic cars
- Luxury cars
- Muscle cars
- Classic trucks
- Vintage race cars
- Antique tractors
- Antique fire trucks
- Classic and antique motorcycles
Like regular car insurance, classic car insurance offers coverage such as property damage liability, bodily injury liability, collision and comprehensive.
These two types of insurance differ in a key way, though.
Traditional cars are insured for their actual cash value, which includes depreciation. But classic cars, which often are worth more than their depreciated value due to restoration or customization, are covered for an agreed-upon value (or full value) determined by the insurer and car owner. The coverage amount for a classic car can be changed as the car's value changes.
Learn more >> What Does Car Insurance Cover?
How to Qualify for Classic Car Insurance
The Insurance Information Institute notes that a car's age isn't the only factor that determines whether a vehicle qualifies for classic car insurance. Although not all insurers use the same criteria, most cars must adhere to the following standards to be eligible for classic car insurance.
Limited Use
To qualify for classic car insurance, a car normally can't be driven to and from work or to run errands. An insurer might insist that you drive a different car for everyday travel. In addition, an insurer may or may not provide exceptions for driving a classic car to a car show or auto club meet-up.
Secure Storage
When it's not being driven, a classic car generally must be kept in a locked, enclosed structure like a storage unit or home garage, as mandated by the insurer.
Solid Driving Record
You might not be able to buy classic car insurance if your driving record contains serious traffic offenses such as driving while intoxicated, reckless driving or speeding tickets.
Driver's Age and Experience
Some insurers might put restrictions on who can buy classic car coverage. For instance, an insurer might require that a policyholder be at least 25 years old and have at least five to 10 years of driving experience.
Pros and Cons of Classic Car Insurance
Pros of Classic Car Insurance
- Frequently cheaper than traditional car insurance
- Coverage for often higher agreed-upon value (or full value) instead of typically depreciated actual cash value
- Potential coverage of high-cost repairs
Cons of Classic Car Insurance
- Various coverage limitations, such as requirements regarding mileage and storage
- Possibility of no available coverage for a car that isn't running well or has previous damage
- Potentially higher premiums for coverage from traditional insurer versus specialty insurer
What Does Classic Car Insurance Cover?
Here are some of the items that classic car insurance generally covers.
Bodily Injury Liability
Bodily injury liability covers expenses related to injuries or deaths that you or another driver cause while behind the wheel of your car.
Property Damage Liability
Property damage liability covers costs related to property damage that you or another driver cause while behind the wheel of your car.
Learn more >> What Is Liability Car Insurance?
Comprehensive
The comprehensive part of a classic car policy covers damage to your car that isn't caused by a crash, such as theft, vandalism, fire and storms.
Collision
The collision part of a classic car policy covers repair or replacement of your car if it's involved in a crash with another vehicle or an object.
Specialized Repairs or Restoration
Classic car insurance covers specialized repairs or restoration of a damaged classic car. Expenses associated with these repairs or restoration often exceed similar costs for an everyday car.
Original Parts
In some cases, classic car insurance pays for original parts, rather than aftermarket parts, to repair a car that's been damaged in a crash or other incident covered by the owner's policy. These parts might include hard-to-find wheels and engine components.
Roadside Assistance
Classic car insurers frequently sell optional coverage for roadside assistance that includes towing services geared toward classic cars.
How Much Does Classic Car Insurance Cost?
Insurance for a classic car normally costs less than insurance for an everyday car. The annual premium for classic car insurance typically ranges from $200 to $1,000. In general, car insurance costs an average of $1,765 per year, AAA reported in 2023.
Factors that affect car insurance premiums include vehicle type, driving history, average annual mileage, coverage limits and deductible amounts.
Learn more >> How Much Does a Car Insurance Policy Cost?
Do I Need Classic Car Insurance?
You generally need to insure a classic car, particularly if you plan to drive it. For one thing, nearly every state requires every car to be covered by a minimum amount of auto liability insurance. In addition, driving an uninsured classic car could leave you on the hook for thousands of dollars in bills to cover damage or injuries. Finally, it's wise to invest in classic car insurance since you've invested in a car whose value might go up over time.
How to Get Classic Car Insurance
Here are five steps to take for getting classic car insurance.
- Contact your current insurer. See whether the company that insures your everyday car also covers classic cars.
- Shop for coverage. Compare quotes from several insurers to find the policy with the best price and the best coverage. A number of insurers specialize in coverage of classic cars.
- Nail down storage options. You'll likely need to meet an insurer's storage requirements. So, before you shop for coverage, it's wise to secure a safe place to park your car when it's not being driven.
- Calculate your car's value. Classic car insurance covers the agreed-upon, or full, value of a classic car. Ahead of purchasing a policy, get a sense of how much your classic car is worth so you and the insurer can agree on a fair, accurate value.
- Check the mileage. Look into the annual mileage limits set by any classic car insurer that you're considering. These insurers usually charge lower rates for vehicles that aren't driven that often compared with an everyday vehicle. That's because vehicles that aren't on the road as often face a reduced risk of accidents along with wear and tear. If you exceed the annual mileage limit, your rates might go up.
The Bottom Line
If you own a classic car, it likely carries a lot of sentimental and financial value. As a result, you should hunt for classic car insurance that adequately covers your car in case it's damaged in an accident, a storm or another incident. Because classic cars are generally on the road less than everyday cars, they normally cost less to insure.