Classic Car Insurance: What Is It? How Does It Work? – ValuePenguin

Classic car insurance provides specialized coverage options and expert service tailored to the needs of classic car owners, which may not be available from a regular auto insurance company.

The most important feature of a classic car insurance policy is agreed value coverage, which means that you and your insurer agree on the value of your car based on an appraisal. Many classic car insurers also offer special coverages for things like displaying your vehicle at car shows, as well as having experience repairing exotic vehicles.

Reading: How does classic car insurance work

However, using classic car insurance can have drawbacks, such as mileage limits, and only certain cars are eligible for a classic car insurance policy.

what is classic car insurance?

There are several services and features that distinguish classic car insurance from your average insurance policy, but the most important is agreed-upon value coverage.

In an agreed value policy, you and your insurer agree on the value of the car you own, and that’s the amount you’re insured for. This could be anywhere from $10,000 to $100,000 or More: It’s all up to the value of your classic car, as determined by an appraiser.

This is in contrast to the way typical automobiles are insured. If you have a commonly available car, your insurer will determine its value based on comparable models and the cost to repair it. In this way, a classic car is insured more as a work of art than a normal motor vehicle because its value is based on what buyers are willing to pay.

Also, unlike typical auto insurance, the maximum payout on an agreed value policy won’t decrease over time. typical cars lose value: a 2010 toyota corolla is worth less now than it was in 2015, so the maximum payment you can receive may also change.

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on the other hand, the value of a classic car can stay the same or even increase over the same period: a 1970 dodge challenger in good condition might have been worth $30,000 five years ago and the same amount today . you’ll need to manually adjust your policy’s coverage amount based on the changing value of your car.

other benefits of classic car insurance

The other main benefit of classic car insurance is that these companies specialize in working with rare, collector or vintage cars. The agents, adjusters and other staff you’ll interact with when you have a classic car policy will be familiar with the ins and outs of a rare car and more knowledgeable about the needs of a classic car owner.

Other specialized coverages include:

Classic car insurance companies will also provide the most common auto insurance coverages, such as liability, personal injury protection, and uninsured motorist coverage, as well as comprehensive and collision coverage.

disadvantages of a classic car insurance policy

Because classic car insurance is designed for rare or high-value cars, there are some shortcomings compared to purchasing a policy from a conventional insurance company. however, you won’t find these drawbacks with all classic car insurers, so be sure to compare offers from multiple insurers to find the one that’s best for you.

classic car insurance eligibility

Classic auto insurance isn’t designed for the cars you use every day or your run-of-the-mill vehicles like a recent Toyota or Volkswagen. Classic car insurers generally require the vehicle to have something special, such as advanced age, high value, or some customization.

In general, your car must fall into at least one of the following categories:

Your vehicle will also likely need to meet all of the following requirements to qualify:

driver eligibility

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In addition, there are usually requirements that you, the car owner, must meet. these vary by insurer, but typically you should:

types of collectible cars

Classic auto insurance is also available for vintage, exotic, custom, or historic cars, and the benefits and drawbacks tend to be similar, although the types of vehicles eligible for coverage may vary by provider.


While most collectible auto insurance policies are relatively similar, it’s important to understand how companies classify different types of collectible vehicles, including some types for which they exclude coverage. Although definitions, years, and descriptions may vary from insurer to insurer and from state to state, the most common collectible car categories are listed below. Generally, we’ll use classic and collector car insurance interchangeably for simplicity.

classic car insurers

Many well-known insurers, including State Farm, Progressive, Farmers, Safeco, Geico, and Esurance, as well as specialty insurance companies (many of which underwrite the aforementioned companies), such as Hagerty, J.C. Taylor, Condon Skelly, Grundy and American National all offer coverage for collectible vehicles. A good place to start your search for the right provider is with your existing auto insurance company, which may generate a discount for insuring multiple vehicles.

See our full breakdown of the best classic car insurers.

classic car insurers

collector insurance cost and available discounts

Collectible vehicle coverage is almost always less expensive than conventional auto insurance due to the fact that you drive far fewer miles each year and are likely to keep the vehicle protected and in good condition. however, the cost of classic or collection insurance is calculated in a similar way to regular auto insurance.

“Collector’s car insurance is generally very affordable, possibly costing about a third of what you’d pay for regular car insurance,” said Kristofer Kirchen, president of Tampa, Florida-based Advanced Insurance Managers LLC. .

Auto insurance discounts available for standard auto policies also apply to collector auto insurance, and vary by insurer. Some circumstances that may allow you to qualify for a discount include:

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