A classic, custom, collectible or antique car requires insurance that reflects your vehicle’s uniqueness and value. If you own—or are thinking of owning—a special set of wheels, find out about the kind of policy you need.
What types of vehicles need special insurance?
A classic, collectible or antique car is no ordinary car—and regular auto insurance is not sufficient to protect such a vehicle against damage or loss.
That said, there is no uniform definition of a classic car. If a car’s value exceeds its original selling price, then it might be considered collectible and a candidate for specialized classic car insurance. In general, vehicles that might warrant classic car auto insurance include:
- Antique and classic cars, usually at least 25 to 30 years old
- Hotrods and modified vehicles
- Exotic and luxury autos—think James Bond
- Muscle cars
- Classic trucks
You might also seek specialized insurance for vintage military vehicles, classic motorcycles and antique tractors.
Qualifying for classic car coverage
A car's age is not enough to qualify for specialized classic car insurance. While requirements differ from company to company, most cars need to meet the following criteria in order to qualify:
- Limited use – Your classic car cannot be used for everyday commuting or errands, and your policy may include mileage limitations and proof the car is being properly garaged if you do travel with it. In some cases, insurers may require that you also own a primary car for everyday use.
- Car shows and meetings – The limited use provision of a classic car policy allows for travel to car shows and auto club meet-ups; however, this coverage may be restricted by some insurers. If this is the case, there are insurers that can provide specialized coverage for car shows and meetings. Before choosing a classic car insurer, it’s worth checking whether they have travel restrictions if you plan to take your car on regular, multi-day, high mileage drives.
- Secure storage – When not in use, your special vehicle must be stored in a locked, enclosed, private structure, such as a residential garage or storage unit.
- A clean driving record – You may be disqualified from classic auto insurance if you have serious offenses on your driving record, such as reckless driving, repeat speeding violations or driving while intoxicated.
Not every vehicle, however special, will meet the qualifications of every insurer. For instance, some insurers may not cover vintage off-road vehicles. Insurers may also decline to insure vehicles that are in poor condition or have been previously damaged.
What you should know about classic car policies
Your classic car policy will include provisions found in standard auto insurance policies, notably property damage and bodily injury liability coverage. But there are some differences, as well:
- Your car's value – Because each car's condition is unique, there is no set "book value" for specific makes and models. The first step in insuring your classic car is for you and your insurer to reach an agreement on the value of the vehicle. This value will be specified in your policy and your car will be covered up to that value without depreciation.
Note that, unlike everyday vehicles that depreciate over time as you add miles to them, classic cars may gain value. Make sure you adjust your coverage as the value of your auto appreciates.
- Specialized repair or restoration –Your policy should you the flexibility to bring your vintage Mercedes, Ferrari or Corvette to a specialist—even if the rates may be twice, or three times, the cost of a typical car repair at a traditional auto body shop.
- Special towing and spare parts – Coverage for towing is commensurate with the special demands of transporting a classic car. Spare parts coverage, too, needs to be aligned with the cost of replacing valuable and perhaps hard-to-find vehicle components, such as wheels, transmissions, and engine parts.
Opting for a motorcycle, instead? Read about motorcycle insurance.
FAQs
Hagerty, Grundy, American Collectors, American Modern and Heaco*ck provide the best car insurance for old cars. These companies are the best options for classic car insurance because of their fair rates, accessibility and experience in the industry.
Why is classic car insurance so cheap? ›
Yes, older cars are cheaper to insure than newer cars in most cases because older cars are less valuable, so an insurer won't have to pay out as much in the event of a total loss. Plus, once an old car falls below a certain value, you may not have to pay for comprehensive and collision insurance anymore.
How many miles can you do on classic car insurance? ›
Classic car insurance policies have a limited use provision. This only allows use of the car for travel to auto shows and auto club meetings. Typically, insurers place a maximum annual mileage restriction for antique car insurance. This varies by state but usually doesn't exceed 7,500 miles per year.
What are limitations to classic car insurance? ›
Qualifying for classic car coverage
Limited use – Your classic car cannot be used for everyday commuting or errands, and your policy may include mileage limitations and proof the car is being properly garaged if you do travel with it. In some cases, insurers may require that you also own a primary car for everyday use.
Did State Farm buy Hagerty? ›
The largest auto insurer in the U.S. is State Farm. They invested $500M into Hagerty at the IPO (technically de-SPAC transaction) and another $75M this past quarter. State Farm sits behind the Hagerty family and global specialty insurance provider Markel as the largest shareholders of Hagerty.
Is full coverage worth it on classic cars? ›
Most of the time, it isn't a good use of money to have full coverage on an older car. After an accident, you will likely get the actual cash value of the vehicle, which is usually not that much more than the extra cost of the insurance.
Can you insure a classic car as a daily driver? ›
If you drive your classic car every day, you'll need a standard auto insurance policy rather than classic car insurance. Explore Progressive Answers' auto editorial guidelines to find out why you can trust the car insurance information you find here.
Will classic cars lose their value? ›
Value: Unlike modern-day vehicles that start depreciating as soon as you drive them home, classic cars often increase in value over time if you take good care of them.
How old is a classic car? ›
The starting classic car age range can generally be anywhere from a minimum of 10 to 25 years old, but there's no agreed-upon minimum age that categorizes a car as a classic. Insurance companies, car collecting clubs, and state BMVs and DMVs all have their own methods for defining a classic car.
How old does a car need to be to insure with Hagerty? ›
1990 or Newer Vehicles
To qualify for our program, 1990 and newer vehicles must meet the following requirements: Minimum value is $3,500. Vehicle must be in good condition unless under active restoration. Annual mileage up to 5,000 may be considered.
Our policy allows your client flexible usage—with no fixed mileage limits. Even if your client have full coverage through a regular car insurance carrier, there may be mileage and usage restrictions to control how and when their classic is driven.
Does Hagerty insurance cover theft? ›
PAYMENT OF LOSS
Unless a claim has been paid by others, we will pay any loss covered under this policy within 30 days after we reach agreement with you, entry of a final judgment, or the filing of an appraisal award with us. We may pay for loss in money or repair or replace the damaged or stolen property.
Who has the best classic car insurance? ›
Best Classic Car Insurance Companies of 2024
- American Collectors – Best for Annual Mileage Limit Options.
- American Modern – Best for Occasional Commuting.
- Leland-West – Best Overall Classic Car Insurance Company.
- Chubb – Best for OEM Parts Repair.
- Hagerty – Best for Restorations.
- Condon Skelly – Best for Lay-Up Discount.
There are three common ways that drivers can find cheap car insurance tailored to a low-mileage lifestyle:
- Low-mileage discounts.
- Usage-based/telematics insurance.
- Pay-per-mile insurance.
What are some of those risks? Well, classic cars are unique, which means the risk of theft or scam is higher. For example, after participating in a vintage car show, you will want to take necessary precautions to make sure your car gets safely put inside the garage and not in the hands of a thief.
Which insurance is best for an old car? ›
A Third-Party Car Insurance Policy is mandatory, be it a new or old car. But you can consider buying the Comprehensive Insurance Policy for your old car as it provides all-round coverage for your car.
Are old cars more expensive to insure? ›
Whether or not car insurance is cheaper for older cars depends on several factors. While new cars may be more expensive to insure due to their higher value, older cars may be costly as well. Although they may have a lower value, older cars may also have expensive parts that could make repairs expensive.
What age is car insurance most expensive? ›
Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.
Can a vintage car be a daily driver? ›
Yes, it's possible to use a classic car as your daily driver. The car must be roadworthy if you're going to use it frequently, which usually means more maintenance and repair.
