If you’re a fan of automobiles, you’d know how much classic and antique cars are worth. These remnants of a bygone era are important reminders of how far automobile technology has come. Collectors go to great lengths to purchase, modify, and maintain classic cars, often at great personal cost. If you’re a collector who owns a classic, you wouldn’t want your hard work to go down the drain. That’s why you need to have classic car insurance.
We’ve collected everything you need to know about this underrated coverage option. It will help you choose the best classic car insurance.
What Is Classic Car Insurance?
Classic car insurance covers a particular category of cars that includes vintage vehicles, antiques, street/hot rods, and replicas of classic cars. Generally, any vehicle that is at least 25 years old and in good condition can be considered a classic. Owning an iconic car like a 1965 Ford Mustang or a 1955 Chevrolet Cameo makes you eligible for classic car insurance.
The peculiar feature of such cars is that their value rises over time, either because they are specially modified or not in production anymore. However, they need tailored car insurance because of their age, high value, and their frequent presence at car shows and the like.
What Cars Qualify for This Type of Insurance?
If you’re wondering whether to sign up for a classic car policy for your 10-year-old Toyota or Volkswagen, we’re sorry to disappoint! Classic cars need to meet certain age, value, and customization criteria before they can qualify for this type of insurance. It should fall into at least one of the following categories.
- 25 years or older
- Modified cars
- Modern muscle cars
- Exotic cars
It should also be in decent condition, should not be used for daily commuting or racing, and should be driven no more than 7500 miles per year (average across all insurers).
What Are the Different Types of Classic Car Insurance?
There are several sub-categories under classic cars for automobile enthusiasts to discover.
- Classic cars: Those manufactured between 1925 -1948, restored, and in good condition
- Antique cars: At least 25 years old, in good working condition or restored condition
- Modified cars: Those significantly altered in the engine, chassis, body, interior, etc.
- Hot rods/ Street rods
- Rare motorsport vehicles
- Limited production models
What Should You Look for in a Classic Car Insurance Policy?
An important feature of classic car insurance is Agreed Value Coverage. This means you and your insurer together agree on your car’s value based on how much potential buyers are willing to pay for it. It is treated almost like a piece of art. The exact number depends on the car you own and its appraisal by the insurer. In a standard car insurance policy, your insurer determines the car’s value based on peer models and estimated repair costs in case of an accident.
Understand whether the company specializes in exotic and antique car coverage so that you know the insurers know what they are talking about. Other points you can look for include:
- Auto show medical reimbursement: To cover any injuries to people at an auto show where your car may be displayed.
- Spare parts coverage: To cover theft of any modified/antique parts.
- Roadside assistance
- ‘No attendance required’ coverage: Protects your car if you are unavailable to accompany it to a car show.
- Inflation guard: Increases your coverage as your car appreciates in value.
What Are Some Drawbacks of This Insurance?
Since this is premium coverage for high-value cars, there are some drawbacks you must consider. For example, some insurers have mileage limits that allow you to drive only a limited distance each month to be eligible for coverage. Some others might not include roadside assistance or medical payment coverage to discourage you from driving it around too much.
How Much Does Classic Car Insurance Cost?
Since you are not expected to drive your classic car around too much, and much of the value depends on how well it’s maintained, classic car insurance is usually cheaper than regular car insurance. Full coverage for classic cars ranges from $200-$600 annually compared to $1000 for regular cars.
What Are Some Dependable Classic Car Insurance Companies?
Some popular choices include Hagerty Insurance (for restored vehicles), Safeco (annual mileage limit of 10,000 miles), State Farm, American Modern, and American Collectors.
How Do I Find the Best Classic Car Insurance?
The easiest way to find affordable classic car coverage is to compare quotes from various insurance providers online. You can start your research on car insurance rates by getting free insurance quotes on Way.com.
Renée Martin is a travel and car expert who focuses on road and air travel in the U.S. For the past 6 years, she’s been helping make driving and trip planning easier and budget-friendly for everyday travelers.
