What Kind of Insurance Do You Need for a Classic Car?


If you own a classic car, it is crucial to protect your one-of-a-kind vehicle with insurance. Most insurance companies offer traditional car insurance and classic car insurance for classic, antique, and vintage cars. 

While both types of insurance offer coverage for your classic car, it is important to consider the differences, so you pick the right option. Discover what kind of insurance you need for a classic car based on your vehicle’s eligibility and coverage needs.  


What is a Classic Car? 

Before deciding on coverage, it is helpful to look at the definition of a classic car. Doing so allows you to determine whether most insurance companies might consider your car a classic, antique, or vintage model. 

The Classic Car Club defines a classic car as a high-end vehicle made between 1915 and 1948 in America or Europe. Cars that were sold from the 1950s through the 1970s are considered antique by most collectors. Vintage collector vehicles are models from the 1910s through the 1940s, such as the 1929 Hudson 7 Roadster.  

These collector definitions may not apply to insurance companies. Car insurance providers typically define a classic car as a vehicle between 25 and 30 years old. These companies may not differentiate between vintage, antique, or classic. Instead, they look at the age in combination with other factors to determine the coverage available for these types of vehicles. 


Classic Car Insurance vs. Traditional Car Insurance

Car insurance companies provide two main types of coverage for vehicles, including traditional and classic car insurance. There are differences in coverage for each type, such as an agreed-upon value and repair or restoration work. 


Traditional car insurance

Traditional car insurance is a common type of coverage obtained for modern vehicles. It insures you for property damage or liability in the event of an accident. Your insurance company bases your coverage on your driving record and the car’s value. 

Modern cars have a generally agreed-upon market value, resulting in fixed insurance premiums. Unlike classic cars, traditional cars depreciate, which means your coverage limits typically decrease year over year. Also, there are generally no storage, use, or condition requirements for modern cars to obtain coverage.

In most states, drivers must carry some type of traditional car insurance. Liability insurance is common and protects the other driver when an accident occurs. This differs from classic car insurance, which is not required unless you plan on driving your classic vehicle. 


What is classic car insurance?

Classic car insurance is specialized insurance that is underwritten to protect classic or unique cars. It is intended to protect vehicles worth more than their original sale price. Classic car insurance is typically for antique or classic cars, exotic and luxury cars, muscle cars, hotrods, and classic trucks. 

To obtain classic car insurance, you must meet initial qualifications regarding the car’s condition, storage, and use. Despite the seemingly tighter insurance requirements regarding classic car insurance, it may be worth the trouble. Car and Driver online magazine reports that classic car insurance can cost up to 30% less than traditional car insurance. 

A significant difference between classic car insurance and traditional insurance is the coverage value. Classic cars do not have an agreed-upon market value. You and the insurance company must agree on a coverage cap based on a professional appraisal to obtain classic car coverage. 

The value of your classic car appreciates over time. Classic car insurance allows you to manually adjust the agreed-upon value coverage to match the growing value of your vehicle. 

A second significant difference in coverage is specialized repairs and special towing. Classic car insurance covers you for taking your classic car to a specialist to perform repair or restoration work. It also offers you coverage for potentially expensive towing costs or replacing damaged parts. 


Why Might You Need Classic Car Insurance?

You may consider getting classic car insurance over traditional insurance for many reasons. Perhaps you are looking to switch to a new car insurance provider and add your classic car, or you may have just purchased a classic car and are eager to protect it. 

Generally, if your classic car is eligible for coverage and you intend to keep it as a long-term asset, you need classic car insurance. 

Potential benefits of classic car insurance include: 

  • Adjustable coverage cap rises as the car’s value increases
  • The agreed value policy will not decrease over time
  • Ability to work with adjusters who specialize in classic cars
  • Access to specialized towing services and roadside assistance
  • Coverage is provided for car show events, even if you are not present
  • Coverage for hard-to-find spare parts
  • Basic coverage of traditional insurance, including liability, collision, and personal injury protection

In addition to these benefits, some classic car insurance build a cash settlement option into the policy. If your classic car is stolen or totaled and the insurance company cannot replace it, you may opt for a cash settlement. This option is important when you own a unique or vintage model that is difficult to replace. 


Eligibility for Classic Car Insurance

Before you can obtain classic car insurance coverage, you must meet the classic car insurance requirements set forth by your insurance provider. To qualify for classic car coverage options for your antique car, expect to adhere to the following guidelines:

  • Maintain a clean driving record
  • Classic vehicle must be in good, original condition with little to no obtrusive restoration work
  • Do not use the car for everyday commuting
  • Adhere to mileage limitations and provide proof of miles used
  • Adhere to limited-use provisions for pleasure drives or car shows
  • Keep your vehicle secure in an approved storage facility
  • Have access to a regular vehicle for everyday use
  • Have turned 25 years old before obtaining collector car insurance

Every insurance company maintains its own set of regulations for special coverage. Just as you would when shopping around for regular car insurance, obtain classic car insurance quotes from multiple companies. Be sure to ask about their specific regulations before getting insurance.  


What Kind of Insurance Do You Need for Your Classic Car?

To decide the type of insurance you need for your classic car, consider your car’s condition and value. You also need to look at your car usage and plans for the vehicle. 

You can benefit from classic car insurance if your classic car is in excellent original condition and you only take it on occasional short drives. You may also consider classic car insurance if your car is a unique, exotic, or rare model with a high dollar appraisal value that will increase over time. 

Alternatively, if you own a classic car but you’ve updated it with modern features, you may consider regular car insurance coverage. You can also look at regular auto insurance if you drive it regularly or if the car is not in good condition.


Get a Classic Car Insurance Quote

Make the most out of your money with a car insurance quote from Finance is us. We help you make informed choices regarding car insurance to obtain the best coverage for your vehicle. Contact us today to explore car insurance options for your classic car so you can have peace of mind knowing you have protection for your investment.  


Disclaimer: All content on this site is information of a general nature and does not address the circumstances of any particular entity or individual, nor is the information a substitute for professional financial advice and services.  

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