Everything You Need to Know About Classic Car Insurance

Your classic car is your pride and joy. We get it. Whether it’s a pristine show car or a long-term restoration project, you want to make sure it’s protected.

Unfortunately, if you drive an antique car or modified vehicle, a standard auto insurance policy may not provide enough coverage. That’s what makes specialized classic car insurance a wise choice for antique cars and trucks, muscle cars, luxury cars, and other unique vehicles. Because your car’s value often exceeds its Kelley Blue Book estimate — or even its original purchase price — it needs specialized insurance to ensure it’s fully covered.

The price of classic car insurance depends on several factors, including your car’s value, how it’s stored, and how often it’s driven. But don’t worry — we’ll cover everything you need to know about classic car insurance in the following sections.

Key Takeaways:

• Classic cars require special auto insurance to protect them from damage and loss.
• American Collectors, American Modern, and Hagerty are some of the best options for classic car insurance.
• Your coverage options depend on the value, usage, and storage of your vehicle.

The Best Classic Car Insurance Companies of 2023

Not all insurance companies offer classic car insurance coverage, so you probably won’t have as many options to choose from. Listed below are the best collector car insurance companies and what each insurer is best for.

American Collectors: Best for maximum coverage

American Collectors specializes in offering insurance coverage to classic car collectors — especially owners of high-dollar show cars. The company insures all different types of vehicles, including trucks, motorcycles, and exotic cars. It also provides “agreed value” protection, which means you and the insurer settle on a specific valuation for your vehicle. That way, you’ll know what you’ll receive if your car is totaled.

The biggest benefit of choosing American Collectors is the additional policies the company offers at no extra cost. You’ll receive up to $500 for spare parts and automotive tools, and your deductible will be waived for glass-only claims.

You’ll also get reimbursed for towing, disaster relocation, travel loss expenses, personal effects, and even get coverage for your pet. But you must have a clean driving record and at least five years of driving experience to qualify.

American Modern: Best for collector vehicles

American Modern covers a wide variety of collector vehicles, including classic cars, race cars, collectible farm equipment, military vehicles, and pony cars. Coverages include liability, comprehensive, and collision — and the company also offers a wide variety of discounts.

Like American Collectors, your vehicle will be insured based on the agreed-upon value, and you’ll also receive collectors coverage, disaster relocation expenses, and spare parts coverage.

And because American Modern underwrites policies for GEICO, you may receive a discount if you have existing GEICO policies. American Modern was also given an A+ rating from AM Best, recognizing its superior financial strength and ability to pay its claims.

Hagerty: Best for flexible coverage

Hagerty provides classic car coverage for nearly any type of vehicle, including collector vehicles, tractors, motorcycles, military vehicles, and even antique boats. The company claims its classic car insurance premiums cost 21% less than daily driver insurance.

You’ll receive “guaranteed value” coverage for your vehicle, so you’ll be reimbursed for the full amount of your car’s insured value in the event of a total loss. And Hagerty is one of the few insurance companies offering flexible usage, so there aren’t as many mileage restrictions on your vehicle.

State Farm: Best for bundling

State Farm protects antique and classic automobiles, as long as they’re used on a limited basis and stored in an enclosed building. You’ll also need to show that you’ve restored, maintained, or preserved the value of the vehicle over time.

If you qualify, State Farm provides typical liability, comprehensive, and collision coverages, but it also offers medical payments, uninsured motorists coverage, and emergency roadside assistance.

If you want to insure your classic car through State Farm, you’ll work with your agent to determine the agreed-upon value. State Farm also offers up to $500 in coverage for your vehicle’s spare parts.

One of State Farm’s biggest benefits is how easy the company makes it to earn discounts by bundling your policies. However, State Farm’s classic car insurance doesn’t cover as many types of antique vehicles as other classic car insurance companies.

GEICO: Best for discounts

GEICO partners with both American Modern Insurance Group and Assurant to offer classic car insurance for vintage cars, antique vehicles, and other collectible cars. Your policy will include liability coverage, uninsured motorist coverage, personal injury protection, and medical payments coverage.

Values for collision and comprehensive coverage will be based on the agreed-upon value of your vehicle. And like State Farm, you’ll receive up to $500 in coverage for spare parts — though you can purchase more for an additional premium.

GEICO is known for its wide variety of discounts, and we like that the company works with classic car experts when underwriting its policies. But unlike American Classic, American Modern, and Hagerty, GEICO doesn’t specialize in working with classic cars.

Understanding Classic Car Insurance Policies

Classic car insurance includes many types of coverage you’ll see in a standard auto insurance policy. But you can expect to see specialized coverages as well, depending on the type of car you own and its specific features.

Here are a few of the most common coverage types included in a typical classic car insurance policy.

Liability coverage

A typical liability policy includes two parts — bodily injury liability and property damage liability. Bodily injury liability reimburses the other drivers and their passengers for any injuries or medical bills if you cause an accident.

Property damage liability pays for any damages to the other driver’s vehicle or property when you’re at fault. For example, liability insurance would kick in if you accidentally backed into someone’s mailbox.

Comprehensive coverage

Comprehensive coverage pays for damages to your car from something other than a collision with another car or object. For example, comprehensive coverage would pay for losses from hailstorm damage, a break-in, or a falling object.

Collision coverage

Collision coverage pays for any losses to your vehicle from a collision with another car or object. If you’re in a car accident or accidentally hit a light pole, collision coverage will pay to repair or replace your car. It also covers damage from potholes.

Agreed value

Agreed value is the amount your insurance company will reimburse you if your car is damaged or stolen. You and your insurer agree on the vehicle’s value before you purchase the insurance policy, so you’re guaranteed to receive the full amount if it’s totaled.

Spare parts coverage

Spare parts coverage is exactly what you’d think — it covers any spare or replacement parts you have for your vehicle (think an extra set of wheels and tires or the factory parts you replaced when modifying your car). Hagerty, for example, offers $750 worth of spare parts coverage on all its policies.

Storage insurance

Most insurance policies require you to keep your classic car in a locked storage unit when you aren’t using it. But a standard homeowners insurance policy won’t cover damages to a classic car that’s stored on your property. Storage insurance protects your vehicle if it’s damaged while in storage.

No-deductible policies

If you choose a no-deductible policy, you won’t be required to pay anything before filing a claim for your classic car. So if you’re in an accident and have $2,000 in damage, the insurance company will pay the entire amount. But if you had a $500 deductible, you’d pay $500, and your insurance agency would cover the remaining $1,500.

How to Qualify for Classic Car Insurance

Insurance companies often put more restrictions on classic car insurance than on other types of policies. It’s a good idea to understand how the following factors can affect your ability to qualify for coverage.

Age and condition of the car

There’s no standard definition for what determines a classic car, but insurers usually consider the age and condition of your vehicle before determining whether it will qualify for specialty coverage. Classic cars are usually at least 25 to 30 years old and are repaired, restored, or well-maintained. Exotic cars, hotrods, modified vehicles, muscle cars, and classic trucks will usually qualify for classic car insurance.

Regular use and mileage

A classic car can’t be used for everyday activities and errands, and most insurers will put mileage limits on its use. Some insurance companies require you to own a daily driver for things like running errands or commuting. But there may be exceptions for driving your vehicle to car shows and meetups.

Storage and security

Your insurer will typically require you to store your vehicle in a climate-controlled garage when it’s not in use. You’ll need to store it in a private, secure location, such as a locked residential garage or storage unit.

Clean driving record

You’ll usually need a clean driving record to qualify for classic car insurance. Most insurers will deny you coverage if you have a history of reckless driving, speeding tickets, or driving under the influence.

Benefits of Classic Car Insurance

If you’re considering classic car insurance, here are a few of the biggest benefits:

• Agreed-upon value: You and your insurer will agree on the car’s value before you take out the insurance policy. This means you’ll know what you’ll be reimbursed for in the event of a total loss.

• Spare parts coverage: Classic cars often have spare parts that are expensive or hard to find. This coverage will pay to replace those parts if they’re stolen or damaged.

• Specialized repair: If your car needs to be repaired, you can take it to the shop of your choice, including small shops that specialize in classic or collector vehicles.

Limitations of Classic Car Insurance

On the other hand, here are some drawbacks to consider before you purchase classic car insurance:

• Mileage limits: Most insurers put mileage limits on your vehicle, and you typically can’t use it on a daily basis. You may be required to have a regular-use vehicle for daily outings.

• Minimal discounts: Classic car insurance doesn’t come with as many discounts as you’d receive with a standard insurance policy.

• Fewer coverage options: You’ll usually receive fewer coverage options than you would from a standard insurance policy.

Classic Car Insurance FAQs

Here’s some additional information on classic car insurance and what it covers.

Do classic cars cost more to insure?

Classic car insurance usually costs less than traditional auto insurance policies. Although these vehicles are more expensive, you spend very little time driving them, making them less likely to be in an accident. And if you’re correctly storing the vehicle, damage and theft are unlikely.

What is the best car insurance for older cars?

If your vehicle qualifies as a classic car, you’ll need to purchase classic car insurance. American Collectors, American Modern, and Hagerty are the three best options for classic car insurance, based on our research.

Do classic cars need more car insurance coverage?

A standard auto insurance policy isn’t enough coverage for classic vehicles. With classic cars, the value often exceeds the original purchase price or its “actual cash value,” so it needs classic auto insurance to ensure it’s fully covered.

What specific protections does classic car insurance provide?

Classic car insurance includes standard coverages like liability, collision, comprehensive, and uninsured motorist coverage. But it usually includes additional policies, like agreed-upon value coverage, spare parts coverage, and specialized coverage for towing or repairs.

Sources:

1. Insurance Information Institute “Insuring your classic car,” Accessed August 25, 2023.
2. AM Best, “AM Best Affirms Ratings of American Modern Insurance,” Accessed August 28, 2023.
3. Insurance Information Institute “Auto insurance basics — understand your options,” Accessed August 25, 2023.
4. American Collector “Classic vs. Regular Car Insurance: Cost & Coverage Comparison,” Accessed August 28, 2023.