Classic Car Insurance – Requirements, Top Companies

Classic car insurance is a specialized form of vehicle insurance designed to cater to the unique needs of vintage and collector cars. Unlike standard auto insurance, these policies take into account the higher value and specialized usage of classic cars. Whether you’re driving a restored 1967 Ford Mustang or preserving a vintage roadster for show, having the right coverage is crucial. In this article, we’ll dive deep into the specifics of classic car insurance, the best providers, and what to consider when choosing a policy.

What is Classic Car Insurance?

Classic car insurance is a policy tailored for vehicles that are typically 20-25 years old or older and have significant historical, collectible, or sentimental value. These cars are often driven less frequently, usually for leisure or car shows, and are expected to appreciate in value over time, which makes them different from daily drivers.

Standard auto insurance policies don’t fit the bill for classic cars because they consider depreciation over time, while classic cars often increase in value. Hence, classic car insurance offers agreed value policies, meaning both you and the insurer agree on the value of the vehicle, ensuring you receive full compensation if it’s totaled or stolen.

Types of Classic Cars Eligible for Coverage

The type of car that qualifies as a “classic” can vary depending on the insurer. Some common categories covered by classic car insurance policies include:

• Antique cars: Vehicles typically older than 25 years.
• Muscle cars: High-performance American cars built in the 1960s and 1970s.
• Hot rods: Custom cars, usually from the 1940s and 1950s.
• Exotic and luxury cars: Higher-end cars, like Lamborghinis or Ferraris, which are often rare.
• Vintage trucks and military vehicles​ ValuePenguin​ Policygenius.

Coverage Options for Classic Cars

Classic car insurance comes with several coverage options that differentiate it from regular auto insurance. These include:

1. Agreed Value Coverage: The agreed-upon value of the car at the start of the policy is what you will be paid if the car is stolen or totaled. This is different from the actual cash value or market value policies typical in standard auto insurance, where depreciation is factored in ​nerdwallet.
2. Spare Parts Coverage: Many classic car owners need specific and hard-to-find parts to keep their cars running. Policies often offer coverage for spare parts up to a certain value. Some insurers, like American Modern, offer up to $2,000 of spare parts coverage​ ValuePenguin.
3. Flexible Mileage: Since classic cars are often used less frequently, classic car insurance typically includes mileage limits, although some companies like Hagerty offer unlimited pleasure driving​ nerdwallet. For instance, Safeco allows up to 10,000 miles annually, which is more lenient compared to others like Heacock’s limit of 6,000 miles​ Policygenius.
4. Restoration Coverage: For vehicles under restoration, some insurers offer coverage during the process. This is particularly beneficial if your car is still a work in progress​ nerdwallet.
5. Roadside Assistance: Companies like Hagerty offer specialized roadside assistance for classic cars, recognizing that towing or repairing a vintage vehicle requires unique care​ Policygenius.

Top Classic Car Insurance Companies

Choosing the best insurer for your classic car depends on your specific needs. Here are some of the best classic car insurance providers:

1. Hagerty

Hagerty is a leader in the classic car insurance space, known for offering specialized coverage options, including automobilia coverage (for things like historic gas pumps or license plates) and no fixed mileage limits for pleasure use. They also offer access to the Hagerty Drivers Club, which provides roadside assistance and discounts on car-related services​ ValuePenguin.

2. Grundy

Grundy offers agreed value coverage with no deductible, which means you won’t have any out-of-pocket expenses in the event of a claim. They are also known for their agreed value inflation guard feature, which increases the car’s insured value as it appreciates​ nerdwallet.

3. American Modern

Offering flexibility, American Modern provides coverage for a wide range of vehicles, from classic cars to antique military vehicles. They also provide options for unlimited mileage, which is great for enthusiasts who drive their cars frequently​ ValuePenguin.

4. Safeco

Safeco is best for those who drive their classic cars more regularly. With a generous 10,000 miles per year limit, Safeco allows classic car owners more freedom while still offering robust coverage​ nerdwallet.

5. American Collectors Insurance

American Collectors offers unique add-ons such as inflation guard to protect the appreciating value of your classic car, and retained salvage coverage, allowing you to keep parts of the car if it’s declared a total loss​ Policygenius.

Cheapest Classic Car Insurance Options

Classic car insurance is generally cheaper than standard auto insurance because the cars are driven less frequently. However, prices vary depending on factors such as the value of the car, how it’s stored, and the driving habits of the owner.

For example, Grundy and American Collectors offer some of the most affordable policies, with annual premiums starting at around $198 and $232, respectively​ Policygenius. Hagerty, while slightly more expensive at about $387 per year, offers additional perks that many car enthusiasts find worthwhile​ Policygenius.

Requirements for Classic Car Insurance

Classic car insurance policies often come with stricter requirements than standard policies. Some of the common requirements include:

• Storage: Your classic car must typically be stored in a secure, enclosed garage when not in use. Some policies may accept a carport or storage facility if it offers adequate protection ​nerdwallet.
• Usage restrictions: Most insurers only cover cars used for pleasure driving, car shows, or parades. Daily driving or commuting is generally not covered under classic car insurance policies ​Policygenius.
• Age of vehicle: Most companies require the vehicle to be at least 25 years old to qualify as a “classic,” though some offer coverage for newer collectibles like muscle cars and luxury sports cars ​Policygenius.

Finding Classic Car Insurance Near You

When searching for classic car insurance near you, start by reaching out to specialized insurance companies such as Hagerty, Grundy, or American Collectors, which offer national coverage. Additionally, major insurers like Geico and Progressive partner with classic car insurance specialists to offer policies in most regions. It’s always wise to get multiple quotes to ensure you’re getting the best deal based on your location, car type, and intended usage​ ValuePenguin.

Classic Car Insurance on Reddit: Insights from the Community

Reddit is an excellent resource for hearing firsthand experiences from classic car owners. Many users discuss their preferences for companies like Hagerty due to their customer service and extra perks, while others share tips on how to keep premiums low. Engaging in these discussions can offer valuable, real-world insights beyond company marketing materials​ ValuePenguin.

Conclusion

Classic car insurance is essential for protecting your investment, and finding the right policy depends on factors like usage, car value, and the level of protection you desire. Hagerty, Grundy, and American Modern are standout providers offering a range of flexible options and extras that cater to collectors. Whether you need unlimited mileage, high spare parts coverage, or protection during restoration, there’s a plan that fits your needs.

FAQs

1. What defines a classic car for insurance purposes? Generally, cars older than 20-25 years with collectible value qualify. Some policies also cover newer high-value cars.
2. How much does classic car insurance cost? On average, premiums range from $200 to $400 annually, but this varies based on the car’s value, usage, and coverage options.
3. Can I drive my classic car every day? Most classic car insurance policies restrict daily driving. They are primarily for pleasure use, car shows, and parades.
4. Do I need to store my classic car in a garage? Yes, most insurers require that classic cars be stored in a secure, enclosed space like a garage.
5. Is spare parts coverage included? Many policies include spare parts coverage, with limits ranging from $500 to $2,000 depending on the insurer.