Classic car insurance

Classic cars are cherished by many, but they come with unique insurance considerations. Typically defined as vehicles at least 25 years old, classic cars might need a collector car insurance policy over a standard one due to their age, restoration status and associated automobilia. Bankrate's insurance editorial team dives deeper into considerations for insuring classic cars.

Classic car coverage is a specific type of car insurance policy, designed for the special needs involved in owning and driving classic cars. As a general rule, if a car’s value exceeds its original selling price and the vehicle exceeds a certain age, then it may be considered a collectible or classic vehicle.

A classic car insurance policy will typically include some of the same coverage types and provisions as standard auto insurance, but there will also be some key differences. For example, while a standard car depreciates in value with age, a classic car generally appreciates — or gains value — with age. Classic car insurance is designed to allow you to adjust coverage upward as your car increases in worth. A typical classic car insurance policy may include standard coverage types, like liability, comprehensive coverage and collision coverage, but can also come with some special perks, like agreed value coverage and coverage for car shows.

If you have an older vehicle that you still drive regularly, it may be difficult to choose between traditional auto insurance and a classic car policy. To help you decide if classic car coverage is right for you, we summarized some of the potential perks and drawbacks of these specialized policies:

Classic cars have some coverage similarities with standard cars, but also have some unique coverage needs, such as an adjustable coverage limit to account for the car’s value potential value increase over time.

When comparing coverage from the top carriers, some features to consider looking for include:

• Higher limits for spare parts, which can be more expensive than for a standard vehicle
• Inflation protection to cover your vehicle as it appreciates in value
• Less restrictive mileage limits (or none) if you plan on driving your vehicle more frequently
• Discounts that help you save on classic car insurance

Some of the best car insurance companies offer classic car insurance policies, while others are specialized classic car insurance providers. Here is a list of insurers to consider:

A classic car is a major purchase that may need to be properly maintained and adequately insured in the event that damage occurs to the vehicle. There are several different types of classic car insurance coverage for you to consider.

Agreed value

Classic cars are unique in that their value increases over time, whereas more contemporary vehicles tend to depreciate in value as soon as you drive them off the lot. It will be up to you and your insurance provider to agree on an adequate value for the vehicle. You may need to provide proof of what you paid for the vehicle, proof of any restorations or upgrades you’ve made to it, or proof of comparative vehicle prices to justify the amount of coverage you seek. Your policy should cover the full value and change over time to reflect the vehicle’s appreciation.

Restoration coverage

If you’re in the process of restoring a classic car, ask your insurer about restoration coverage. You’ll need to provide proof of ongoing restoration work, but your car will be covered during the restoration period and your policy may automatically adjust to account for the increase in value. A vehicle under construction policy could even provide coverage for your automotive tools and quarterly value increases. Remember, if you are restoring a classic car it must be restored using the original design and parts.

Spare parts coverage

Classic car aficionados may have a few spare parts for future upgrades. With spare parts coverage, you may be protected in case anything happens to the expensive specialty tools and parts in your possession. Some providers even offer coverage for your automotive collectibles, commonly called automobilia coverage.

Collective items coverage

Some insurers may offer this option to cover collective automobile items you have stored in your garage. This can include automotive literature like old catalogs, guides and owners manuals; hood ornaments, gas pump or station displays and vintage license plates. Model cars, toys, paintings, prints and tractor, diner and barber shop memorabilia may also be eligible for coverage under automobile collectible items.

Antique cars, hotrods, exotic vehicles, luxury cars, muscle cars and classic trucks are a few examples of the types of vehicles that may need classic car insurance. Besides the type of vehicle, there are other requirements you may need to meet before you can get classic car insurance.

Vehicle requirements for classic car insurance

Most classic car insurers have a set of qualifications that must be met for a vehicle to be covered under a classic car policy. Each insurer has its own set of rules, but they generally share a few common factors.

• Age: Cars generally need to be at least a couple of decades old to be eligible for a classic car insurance policy, and some insurers will expect the car to be much older than that to qualify for classic car insurance. Some newer vehicles may qualify as collector cars, but these are the exception, not the rule.
• Limited use: You likely won’t be able to commute to work every day in your classic car, whether it’s a short commute or otherwise. Some insurers will place an annual mileage limit on your vehicle; others have a list of uses expressly forbidden, such as commuting to work.
• Condition: Most insurers will expect you to take good care of your vehicle for it to qualify for classic car coverage. You may need to submit photos of your car that show its condition when you apply for classic car insurance. If you have just purchased a vehicle that you intend to restore, you may need to purchase restoration coverage, which will protect your investment in your car until your work on it is completed.
• Storage: Where you store your classic car will affect how much you pay for insurance. Some providers require the vehicle to be in a locked, enclosed and private structure.

Driver requirements for classic car insurance

Owning a classic car is a big responsibility. Insurance companies generally want to know that you’re a low-risk classic car owner to insure you.

• Age and experience: Teen drivers and young adults tend to have higher crash rates than older, more experienced drivers. You may have to be at least 25 years old to insure a classic car.
• Driving record: While you may still be able to get classic car insurance with a less-than-perfect driving record, drivers with clean driving records will generally pay lower rates.
• Additional car: Since classic car insurance policies don’t cover everyday use, you may have to show proof that you own another vehicle for your daily commute.

The cost of classic car insurance varies based on a number of factors, just as it does with standard auto insurance policies. Some factors that may affect your car insurance cost, depending on your state, are the age of the vehicle, the value of the vehicle, the age of the driver, the gender of the driver, the driver’s driving record, credit tier and more.

Classic car insurance provides additional coverage for your vehicle, so the premiums are typically higher than standard auto insurance. These strategies may help you find more affordable classic car coverage: 

• Bundle your policies: You may earn a bundling discount for purchasing home, renters or auto coverage from the same company that insures your classic car. 
• Limit your mileage: Reduced mileage typically results in lower premiums. However, many classic car policies already have mileage caps. 
• Avoid tickets and accidents: Maintaining a clean driving record and avoiding filing claims may help keep your premium low over time. 
• Look for discounts: Insurance companies typically offer at least a few discounts for potential savings. These may include discounts for certain professional groups, safety features or even paperless billing. 
• Join a car club: Some carriers may offer discounts for members of certain car clubs. Speaking with an agent directly may help you understand what affiliate savings are available with specific carriers. 

Remember, discount offerings and criteria can differ based on location and insurance provider. Engaging directly with company representatives is the most effective way to uncover all potential savings opportunities.

Frequently asked questions