Forbes Guide To Classic Car Insurance

If you own a classic car like a 1965 Ford Mustang or a 1955 Chevrolet Cameo, you’re probably going to want classic car insurance. Traditional auto insurance policies are generally insufficient for classic vehicles. That’s because classic cars often rise in value over time, while regular cars depreciate.

Classic car insurance isn’t limited to old roadsters, antique pickup trucks and vintage muscle cars. What qualifies as a “classic car” varies by car insurance company, which might include “modern classics” and even replicas of classic cars.

If you’re a classic car owner, collector, enthusiast or hobbyist, or you’re restoring a classic car for weekend pleasure cruising, here’s what to know about classic car insurance.

What is a “Classic Car”?

The definition of a “classic car” will inevitably change depending on who you ask. While the Classic Car Club of America (CCCA) defines a classic car as an automobile manufactured from 1915 to 1948, some folks might use the term “classic car” as a catchall phrase to refer to vintage, antique, collector and other types of cars, even if they were manufactured after 1948, such as a 1961 Jaguar E-Type.

Your car insurance company most likely won’t rely on the CCCA definition of a classic car. Instead, definitions of what constitutes a classic car or other types of cars will depend on your insurance company. For example, here’s how these types of cars were defined on a State Farm insurance policy we reviewed:

Classic automobile: A motor vehicle that is 10 or more years old and is a rarity or of historic interest, which has been restored, maintained or preserved by classic automobile hobbyists.
Antique automobile: A motor vehicle that is 25 or more years old and has been restored, maintained or preserved by antique automobile hobbyists.
Replica: A reproduction of an antique or classic automobile. If the motor vehicle is 25 or more years old, it will be considered an antique.

For comparison, we reviewed a policy from The Hartford. Here’s how The Hartford defined classic and antique cars:

Classic automobile: A motor vehicle that is 10 or more years old and may be used on a regular basis. Its value is significantly higher than the average value of other motor vehicles of the same make and model year.
Antique automobile: A motor vehicle that is 25 or more years old and is maintained primarily for use in exhibitions, club activities, parades and other functions of public interest, and occasionally used for other purposes.

Some car insurance companies have a few more terms to throw your way. For example, Hagerty’s website says classic car insurance might include modified and newer vehicles, sometimes called “modern classics” or “future classics.”

The bottom line is that the definition of a classic car and other types of cars will vary by insurance company. It’s a good idea to discuss your specific car with your insurance agent to find out what type of coverage your car is eligible for.

What Types of Cars are Covered by Classic Car Insurance?

Classic car insurance can cover a wide range of vehicles, depending on the insurance company. Here are some types of vehicles that might be eligible for classic car insurance:

Antiques
Classic cars
Classic military vehicles
Classic tractors
Customs
Exotics
Kit cars and replicas
Military vehicles
Modified vehicles, like hot rods, tuners and lowriders
Motorcycles and scooters
Muscle cars
Race cars
Restorations in process
Retired commercial vehicles, like fire trucks
Trucks
1980 and newer collector vehicles

What Types of Cars Are Excluded for Classic Car Insurance?

While classic car insurance covers a wide range of cars, how you use your car is generally a key factor car insurance companies use to determine coverage.

Classic car insurance often requires “limited use.” This generally means you’ll drive the car only for certain activities, such as exhibitions, parades and classic car club activities.

A classic car insurance policy might allow you to occasionally use the car for other activities, like pleasure drives. But if you’re using it on a regular basis, like commuting to work, it most likely won’t be covered by a classic car insurance policy.

For example, generally Hagerty typically won’t insure a classic car if it’s used in one of the following ways, regardless of its age:

Daily use vehicles
Off-road or recreational vehicles
Commercial use vehicles

Some insurance companies, like Nationwide, might require you to have a regular use vehicle for daily driving if you want your classic car to qualify for classic car insurance.

Some classic car insurance policies might have storage requirements. For example, you may have to store the car in an enclosed, locked garage or storage facility to be eligible for coverage. Hagerty, for example, might consider other storage options OK, like carports, driveways, parking garages and car hauling trailers.

What Does Classic Car Insurance Cover?

Classic car insurance typically offers coverage types similar to a personal auto insurance policy:

Liability auto insurance. This coverage pays for damage and injuries you cause to others. It also pays for a legal defense in case you are sued because over a car accident you caused. This coverage type is required in most states if you plan to drive your vehicle on public roads.
Collision and comprehensive insurance. Together, these insurance types cover a wide range of problems such as car accident damage to your own car, auto theft, vandalism, collisions with animals, fire, flood, hail, falling objects and riots.
Uninsured motorist coverage. This coverage pays for your medical bills if someone without insurance crashes into you. Some states require you to carry this coverage. In some states it can also cover car damage caused by an uninsured driver.

In addition to the standard coverage types, classic car insurance typically has some optional coverage types that you can tailor to your needs:

Cherished salvage coverage. If your classic vehicle is totaled by a problem that’s covered by the policy (like a car accident or flood), you’ll have the right to keep the salvaged car and still get a payout from the car insurance company (minus your deductible).
Spare parts and automotive tools coverage. This covers spare parts and personal tools used to maintain or restore your classic car. Some auto insurance companies might cover spare parts even if they are not intended for the vehicle on the policy.
Vehicle under construction coverage. If you’re restoring a classic car, this provides periodic increases to coverage. For example, with Progressive Classic Car by Hagerty, you’ll get an additional 10% in coverage (up to $25,000) to keep pace with restoration work.
Disabled vehicle coverage. This insurance type might include coverage for roadside assistance, which typically pays for towing and delivery of items like fuel or oil. You might also be able to include trip interruption insurance, which covers the cost of transportation, lodging and meals if your car breaks down outside a certain distance of your home.
Automobilia coverage. This coverage pays for certain collectible items, such as hood ornaments, vintage license plates, gas pumps and station displays, automotive literature and other types of items.

What If My Classic Car Is Totaled?

If your classic car is totaled by a problem covered by the policy, like a car accident, fire or flood, you can file a claim with the car insurance company. Because classic cars typically do not depreciate in value like a regular car, you want to be aware of your payout options.

Agreed value is the amount you and your car insurance company agree on in advance for the value of the vehicle. This is the amount the insurance company will pay if your car is totaled (minus the deductible amount). You might base the agreed value on appraisals, photos and other documentation. If your car appreciates in value, you can change the agreed value amount at the time of policy renewals.
Stated value is the amount that is “stated” when you take out your classic car insurance policy. You’ll tell your insurer what the car is worth (with documentation for support) and your car will be insured for that amount. However, if your car is totaled, your car insurance company can choose to pay you either the stated value or the actual cash value of the vehicle, whichever is less.

If you own a classic or collector vehicle that maintains or increases in value, agreed value is the better choice. You’ll have a guarantee that you can recoup your financial loss if the car is totaled.

Who Offers Classic Car Insurance?

It’s a good idea to compare coverage options and prices from several companies to find the best policy. Here are some providers:

Classic Car Insurance FAQs

How much does classic car insurance cost?

Classic car insurance cost is going to depend on several factors, including the age, model and condition of the car. Other pricing factors might include how you store your vehicle (such as a garage or storage facility) and how you use the vehicle. The only way to know what you’ll pay is to get quotes.

Can I get discounts for classic car insurance?

Some classic car insurance providers offer discounts to their customers. For example, American Modern offers discounts for car club membership, anti-theft devices, accident prevention and the value of your collection.

You may qualify for other discounts, like a multi-vehicle discount if you insure a classic car with the same company you use for your regular car. You could get a bundling discount if you insure your car and home with the same company.

Classic cars may be excluded from car insurance discounts you might find on a personal auto policy, like good driver and good student discounts.

Does AAA have classic car insurance?

Yes, AAA sells classic car insurance from Hagerty Insurance.

Is a 22-year old car a classic?

A 22-year old car might be considered a classic depending on several factors, including the value of the vehicle and how you use it. Generally, if you’re driving your 22-year old car on a regular basis (like commuting to work), it won’t be eligible for classic car insurance.

Additionally, a car insurance company might require a 22-year old car to have a significantly higher value than cars of the same make and model year. Or it may need to be rare or of historic interest. In other words, while it’s impressive your 1998 Toyota Camry is still up and running, it most likely won’t qualify for classic car insurance.