What Is the Difference Between Classic Car Insurance and Regular Car Insurance?
Although policies for both classic cars and everyday vehicles offer many of the same types of coverage, there are several ways in which classic car insurance differs from the types of policies offered on other vehicles.
First and foremost, since classic cars often increase in value rather than depreciate as they age, the valuation process works in a very different way. In fact, many classic car policies use what is called “agreed value” instead of sticker price or other determination methods. This agreed value takes into account current market values as well as all of the investment you’ve put into the car through restoration or upgrades.
Furthermore, classic car coverage typically costs less because companies place mileage caps or usage agreements on their policies. In most cases, you won’t be driving your antique auto or classic muscle car to work every day, which means that the liability is lower for car insurance companies and as a result don’t charge you as much in premiums.
Finally, classic car coverage amounts change more frequently than a typical policy since classic cars gain value over time and also further increase in value as you do further work to them.
Because of these differences, classic car coverage often comes with entirely different restrictions and expectations than most other car insurance policies, like mileage restrictions, storage requirements, and other unique considerations that are needed when insuring these types of cars.
How Much Does It Cost to Insure a Classic Car?
Insurance for classic cars costs an average of 36% less than standard car insurance policies. While exact rates vary based on the specifics of your car, location, and driving history, chances are you’ll spend several hundred dollars less per year on classic car insurance than you would with a standard insurance policy.
Can You Get Full Coverage on a Classic Car?
Yes, and in most cases classic car insurance policies will require you to carry full coverage due to the nature of the vehicles. Because classic cars hold such high value and repairs can be much more costly, it’s actually in your best interest to carry full coverage that includes collision and comprehensive as well as your state’s minimum requirements of liability insurance.
What is Considered a Classic Car for Insurance Purposes?
While specifics vary between insurance companies, classic cars typically must be:
- Antique and classic cars, usually at least 25 to 30 years old
- Hot rods and modified vehicles
- Exotic and luxury autos
- Muscle cars
- Classic trucks
Additionally, these cars are usually expected to be in some sort of restored condition with a certain percentage of original parts, and should hold some sort of historical value.
The Bottom Line
Chances are that if you own a classic car, you’ve invested large amounts of time, energy, and money into your vehicle. It’s essential to give your prized possession the protection it needs and deserves with classic car insurance. The above options are great companies to check out so that you have peace of mind while you enjoy that Sunday drive in your classic car.
When selecting our top car insurance recommendations for classic cars, we evaluated over 25 car insurance companies who offer classic car insurance based on several metrics, including coverage options, financial strength, claims satisfaction ratings, and customer reviews from websites. We also compared advertised rates and discounts on each companies website plus data on car enthusiast websites like The Truth About Cars, Car and Driver, and more. Our analysis is meant to provide you with a great wealth of information, but we definitely encourage you to shop around before committing to one provider for your classic car insurance needs.