Classic Car Insurance Coverage: An Expert Guide (2023)

Just like you need to insure yourself against accidents or illness, you also need to cover your cars. When it comes to a classic car insurance policy, however, regular auto insurance won’t cut it.

Whether it is a car, truck, motorcycle, or some other type of rare classic vehicle, you will need a special type of American collectors insurance. Keep reading to get all the facts you need to properly protect your one-of-a-kind ride.

What is Classic Car Insurance?

With classic car auto policies, an insurance company will cover a vintage vehicle for a specific value agreed on by the owner as well as the insurance company. Typically, when a new car is driven off the lot, it loses some of its resale value immediately.

However, as antique cars age, they become more like high-value vehicles and are considered commodities. That being said, an understanding of your antique car’s value becomes important. There are valuation tools that can help give an accurate estimate of the vehicle’s value such as NADA Guidelines and Hagerty.

Classic cars are generally more valuable, and can incur more expensive repairs than other vehicles, so having specialized insurance, such as agreed-value coverage, is a necessity.

Read More: Understanding Your Car Insurance Needs

This is because vintage car parts are usually less common and so are mechanics that are able to work with them. Typically, a classic car policy can be purchased from commonly known insurance providers such as Geico or Progressive, but can also be purchased from specialized insurance agencies.

Read more: What is the difference between agreed value and actual cash value car insurance coverage?

Types of Collector Car Insurance

Vintage vehicles are categorized differently. The first step towards finding a classic auto insurance policy for your collector car is understanding what type of category your vehicle falls under. Classifications vary from state to state, but here is a generalized guide to particular classifications:

• Classic Cars: According to the Classic Car Club of America (CCCA), this classification includes any type of limited production vehicle. These cars are American or foreign built, ranging from the years of 1915 to 1948, produced in limited quantities. They are usually priced higher when new. CCCA also provides (and updates) a full list of approved classics according to their guidelines. Example: 1923 Ford Model T
• Antique Cars: According to the Antique Automobile Club of America (AACA), antique cars are 25 years or older. In some states, the age required to be considered an antique varies from 20 years and up. Example: 1966 Shelby 427 Cobra
• Modified Cars: Cars in this class are loosely defined as being “substantially altered from their original condition in a way that can impact the value in positive or negative ways.” These alterations can include engine, body, chassis, or interior vehicle modifications. Example: 1960 Jeep with an added roll-cage and wench.
• Kit Cars & Replicas: Cars in this class are broadly defined as being made up of multiple manufacturer parts that are at least 25 years old. Example: 1955 Mustang with a 1960 Camaro Engine and a 1980 Chevelle Bumper.

Classic Car Insurance Eligibility, Coverage, & Cost

In the same way that standard car insurance has stipulations, antique car insurance companies have particular requirements, coverage limitations/inclusions, and costs associated as well.

Eligibility

There are requirements that differ from standard insurance that are important to understand:

• Ownership: You must be able to prove possession of a classic, antique, modified, or kit/replica vehicle that is in good shape.
• Clean driving record: You cannot have more than one at-fault accident or moving violation.
• Age: You need to be a licensed driver of at least 25 years of age or older.
• Storage: The vehicle must be stored in a secure, fully-enclosed garage, carport, or storage center.
• Ownership of another car: If you own another vehicle, it must be used as part of your daily commute or considered your primary means of transportation.
• Consent: The vehicle must be used for normal driving (no off-roading, or race tracks).

Coverage

Similar to traditional auto insurance, most terms are for twelve months and cover categories like liability, uninsured/underinsured vehicles, comprehensive, medical payments, and collision, as well as coverage specific to rare cars such as:

• Traveling Coverage: If your vehicle breaks down while traveling, this coverage can reimburse you for hotel/motels, rental vehicles, and food needed due to vehicle issues.
• Coverage for Spare Parts: Some owners keep spare parts inside the vehicle in case of an emergency. If agreed upon with the insurance company, this coverage insures the spare parts in case of theft or damage.
• Roadside Assistance: This includes services such as: towing, flat tire, locksmith, fuel delivery, extrication/winching, battery jump-start services, as well as any minor mechanical repairs or adjustments that can make the automobile road-ready.
• No Attendance Required: In the case that your car is being shown at an auto show without you being physically present, this coverage fully protects your vehicle.
• Auto Show Medical Reimbursement: At a show, vehicles are often demoed for curious individuals; this coverage protects owners in case of an injury.

Enter your zip code in our free tool below to compare the best policies in your area:

Cost

Classic car insurance typically costs considerably less than traditional auto insurance, due to three important differences:

1. Vintage vehicles are expected to be driven less than typical vehicles. Coverage providers require owners to have a second mode of transportation.
2. Classic cars often have higher standards of maintenance because of their value and availability. These include routine cleanings, the way the cars are stored, etc.
3. Antique automobiles are driven more carefully. Typically you won’t see a Model T peeling out at a stop-light, or testing their e-brake in the snow.

Commonly, factors associated with traditional car insurance (such as driving history, age, gender, etc.) are also included in consideration for classic car coverage, but there are even more factors that come into play when determining classic car insurance rates.

The best way to get a direct numerical answer is to provide some of your information in order to get quotes from multiple insurance companies tailored to you and your vehicle.

After several quotes are received, compare rates and make your decision based on which coverage and price fit your needs best.

Case Studies: Highlighting the Importance of Classic Car Insurance Coverage

Case Study 1: The Restored Classic

John owns a beautifully restored 1967 Ford Mustang, which he acquired after years of hard work and investment. One day, while attending a car show, a severe thunderstorm rolls in unexpectedly. The strong winds and heavy rain cause a large tree branch to fall on John’s Mustang, causing significant damage.

Thankfully, John had a classic car insurance policy that covered agreed value, and he was able to receive compensation to repair the damage and restore his beloved Mustang to its former glory.

Case Study 2: The Stolen Treasure

Sarah is the proud owner of a rare vintage Ferrari. She takes great care of her car and always ensures it is securely parked in her garage. One day, while Sarah is on vacation, her home is burglarized, and her cherished Ferrari is stolen. Luckily, Sarah had a comprehensive classic car insurance policy that included theft coverage.

She filed a claim and received the agreed value of her vehicle, allowing her to recover from the loss and start searching for a replacement.

Case Study 3: The Accident on the Road

Mark is driving his classic Chevrolet Corvette on a scenic coastal road when another driver runs a red light and collides with his vehicle. The impact causes substantial damage to Mark’s Corvette.

Fortunately, Mark had classic car insurance with collision coverage. He contacted his insurance provider, filed a claim, and received the necessary funds to repair his beloved Corvette back to its original condition.