Classic Car Insurance: What You Need to Know

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:

• American Collectors, Hagerty, and American Modern are some of the best options for classic car insurance.
• The average classic car insurance policy costs around 40% less than traditional auto insurance coverage.
• Consider purchasing boutique coverages — such as spare parts coverage and agreed-value policies — to fully protect your classic car.

How Classic Car Insurance Works

Insuring a classic or exotic car is a lot different from getting an insurance policy for your daily vehicle. Not only do you drive your classic car far less often, but you also probably need some unique insurance solutions to protect your classic vehicle’s value.

After all, you want your pride and joy protected from any kind of potential damage, and you want to ensure you get your vehicle’s full value if the worst-case scenario happens.

Let’s take a closer look at how classic car insurance differs from a standard auto insurance policy.

Insuring a classic car vs. your daily driver

Other than having seats, a steering wheel, and four wheels, there aren’t many similarities between your beloved classic car and the modern daily driver you use for your everyday needs. So it makes sense that you’ll have different insurance needs between the two vehicles.

While the average daily driver racks up around 12,000 miles each year, you probably put a fraction of those miles on your classic car. Likewise, modern daily drivers typically lose value over time, while many classics either retain their value or even appreciate.

These differences bleed over into your car insurance as well — and each affects your premiums in different ways.

For example, driving fewer miles typically means you pay less for coverage, but additional coverage can push premiums higher.

Let’s take a look at what sorts of coverages you should consider for your classic car.

Additional protection

While traditional car insurance policies mostly protect against everyday incidents — car accidents, parking lot fender benders, and theft — classic cars typically need more expansive protection.

Many classic car owners purchase things like spare parts coverage and storage insurance. Additionally, the entire policy agreement is often different because you might need an “agreed-value” policy to make sure your company insures the vehicle’s full value.

Each of these additional coverages can affect your classic car insurance premiums.

With that in mind, let’s look at what you can expect to pay to insure your classic car (we’ll discuss each in more detail later in this article).

How Much Is Classic Car Insurance?

A unique vehicle needs unique coverage, but how much should you expect to pay to insure your classic or exotic vehicle? The table below showcases the difference in cost between full-coverage policies for traditional vehicles and classic cars.

Because classic cars are driven far less frequently than normal vehicles, classic car insurance costs quite a bit less than a traditional policy. In fact, we found that the average classic car insurance policy costs around 40% less than a traditional policy.

But keep in mind that each additional coverage you add — such as spare parts or car storage coverage — can increase your rates.

Not every insurer offers these unique coverage types, so we’ve broken down a few of the best classic car insurance companies in the next section.

The Best Classic Car Insurance Companies of 2024

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.

Best for maximum coverage: American Collectors

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.

Best for collector vehicles: American Modern

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.

Best for flexible coverage: Hagerty

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.

Best for bundling: State Farm

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.

Best for discounts: GEICO

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.

What to Consider When Buying Classic Car Insurance

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.

Agreed value policies

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.

Modifications

Traditional insurance policies usually don’t cover any modifications you make to your vehicle. But resto-mods and other highly customized classics often have high-end mods that you need to protect.

Not every insurance company will insure your classic car’s modifications, so check with your agent to find out how to add coverage for mods and other customizations. And if yours won’t cover customized parts, check out one of the best classic car companies we mentioned earlier.

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.

Mileage limits

Many classic car insurance policies put caps on your car’s annual mileage. Still, many insurers allow you to choose a mileage cap of 2,500, 5,000, or 7,500 miles.

But most classic car owners don’t drive high-end classics more than 5,000 miles each year, so mileage limits aren’t usually an issue for many drivers.

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.

Your car’s age and condition

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 separate vehicle 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.

Your 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.

Are classic cars cheaper to insure?

Generally, yes. Our research found that a full-coverage policy is 40% cheaper for a classic car compared to a modern daily driver. That said, added coverages for spare parts and other modifications can increase overall costs.

What are the limitations of classic car insurance?

Most classic car insurance policies limit the number of miles you can drive each year, and your car generally needs to be at least 25 years old to qualify. Many specialty insurers also require you to have a clean driving record and proper storage facilities for your classic car.

Is full coverage worth it on classic cars?

Usually, yes. Full coverage — which typically includes comprehensive and collision coverage — is worth having for any high-value vehicle. Without full coverage, your insurer wouldn’t cover any damage to your classic car.

How old does a car have to be to be considered a classic car?

Most insurance companies require your car to be at least 25 years old to qualify as a classic car, but some exotic or other rare vehicles might qualify for coverage.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. Insurance Information Institute “Insuring your classic car,” accessed May 15, 2024.
2. AM Best, “AM Best Affirms Ratings of American Modern Insurance,” accessed May 15, 2024.
3. Insurance Information Institute “Auto insurance basics — understand your options,” accessed May 15, 2024.
4. American Collector “Classic vs. Regular Car Insurance: Cost & Coverage Comparison,” accessed May 15, 2024.