Car Insurance for Classic Cars Explained

When it comes to historical, vintage, antique, old, and classic cars, there’s quite a bit of difference depending on the type of car you’re insuring. Insurance premiums aren’t necessarily dependent on the age of your vehicle but rather its make, model, and value.

Whether you’re searching for car insurance on a classic car or an older vehicle, there are a few things you’ll need to know that will heavily influence the best auto insurance policy for your needs and how you can score lower premiums. Let’s check out what you need to know about insuring old cars. 

Classic vehicle insurance is a specific auto insurance policy that provides protection for vehicles that have appreciated in value over time, like historical, antique, or collectible vehicles. Since a standard auto insurance policy generally won’t fit the needs of a classic car, policies for classic vehicles are tailored to its unique needs. 

Since classic vehicles appreciate in value over time, coverage for these vehicles is based on agreed value. The car owner and the insurer agree upon the vehicle’s value each year at renewal because, unlike standard cars, classic vehicles increase in value as they age and, thus, require higher coverage limits. 

Another hallmark of car insurance for classic cars is a mileage limit. Since classic cars generally don’t act as a daily driver, and in some states, like Michigan, there are pretty hefty restrictions, they generally will have a limited usage policy. This way, joy rides are covered, but you aren’t overpaying for a car that spends most of its time in the garage (or gleaming in your driveway for all your neighbors to see).

Insurance on an old car may cost more or less than insurance on a new car based on a few factors, like the car’s make, model, and condition. In many cases, older cars are less expensive to insure. But, classic cars are the exception to this rule.

Any expert worth their salt will tell you there’s a big difference between old cars and classic cars. When a vehicle is described as old, that generally means it’s a standard vehicle that has depreciated in market value over time. In this case, premiums will likely be cheaper because your insurer would have to pay less in collision and comprehensive coverage claims. 

However, the value of classic cars increases over time, creating a notable difference between these two types of aged vehicles. Auto insurance for classic vehicles will likely come with higher premiums, because of the cars increased value and, thus, the increased amount of money an insurer would have to pay during a claim for comprehensive or collision coverage.

Classic car insurance rates will vary depending on many factors, like the age, condition, rarity, and how often it’s driven. Similarly, insurers also consider many factors concerning the policyholder when determining rates, like your age, insurance history, driving record, and more. 

Uniquely, classic car insurers use something called agreed value car insurance when determining premiums on a classic car policy. Agreed value is the value of the vehicle, agreed upon between the owner and the insurer. So, classic car coverage rates are determined based on the agreed value of your vehicle.

It’s also important to note that the way you store your vehicle will influence your premium costs. Policies for classic vehicles kept in dry, climate-controlled environments generally have lower premiums than classic car insurance with no garage. Safely storing your vehicle ensures it retains its value and helps reduce the likelihood of wear and tear. 

The best way to find cheap car insurance for older cars is to do some research about your car, insurers in your area, and the coverage options available to you. Additionally, utilizing the discounts offered by your insurer is a surefire way to get the best coverage at the most affordable rate. 

There are generally three ways to lower your auto insurance premiums, whether you’re insuring an old car, a classic car, or just a standard vehicle:

The first step to getting cheap insurance on an older car will hinge on how old and valuable your vehicle is. If your car is just old, not a collectible or an antique, but rather a 1996 Trailblazer with more than a couple of rust spots, you can probably drop some coverage off your policy to save on your premiums. Namely, dropping comprehensive and collision coverages can help you save quite a bit — but you’ll still run a risk if you’re involved in an at-fault accident.

However, collision insurance for classic cars is often a non-negotiable for owners. Collision coverage helps cover the cost of repairs if your vehicle is damaged, and those bills will tally up quickly if you have an antique vehicle like a 1977 Pontiac Firebird Trans Am (especially if you drive it like you’re in Smokey and the Bandit). However, on a 1996 Trailblazer, those bills would probably exceed the total value of your vehicle, so you’re better off dropping the coverage in that case.

Aside from adjusting coverage limits, there are a few other things you can do to lower your premiums. Firstly, you can raise your deductible. Premiums and deductibles move together, as one is raised, the other falls. So, to lower your premiums, you can raise your deductible.

Just remember, by raising your deductible, you’ll owe more money during the claims process, as your deductible is the amount you’ll have to pay upfront when filing a claim before receiving your coverage benefits.

The safest way to lower your premiums is to utilize your insurer’s discounts. Insurers offer a range of discounts, some unique to the insurer and some standard across the board. For example, many insurers will offer a bundling discount for those who purchase multiple policies with the same insurer.

Similarly, many insurers will offer a discount for drivers who travel fewer miles annually than the national average.

When dealing with classic cars, many insurers will offer lower premiums to those who safely store their vehicles in a garage or another climate-controlled environment. 

The easiest way to find the best classic car insurance companies is to get and compare quotes online. Each driver will have their own set of criteria for their insurer to meet, and the best insurer for your needs will depend on the type of vehicle you own, your financial standing, and your insurance history.

Generally, the best classic car insurance company is one that offers specialized policies for classic car insurance, like Grundy, Hagerty, or our partner, Progressive. These companies will offer the coverage limits you need to protect your valuable vehicle and will have plenty of experience doing so.

If you’re unsure where to go to insure your classic or older vehicle, your best bet will be to gather and compare classic auto insurance quotes. Quoting allows you to see several potential policies all in one place, so you can make the best choice for your needs. 

The best car insurance for older cars and classic vehicles will likely come from a specialized insurer that offers below-average premiums and plenty of flexibility regarding coverage and coverage limits. Insurance is highly subjective, so there isn’t a one-size-fits-all policy that will be the best for every driver.

The best policy often depends on your coverage needs, the make, model, and age of your vehicle, and your budget. The best policy for an older vehicle, like that 1996 Trailblazer we mentioned earlier, will probably be a bare-bones liability-only policy that offers the driver more protection than it does the car.

However, the best classic sports car insurance will be entirely different, as a Corvette or Lamborghini has much different needs and parts. If you were to crash a classic car, the cost of repairs would be much higher than the repairs for an older car due to the need for specialized parts. Thus, the best policies for each type of vehicle will differ. 

Insuring old cars is tricky, but the need for some insurance coverage remains the same across the board, no matter the age or value of your car. Car insurance is legally required in every state except for New Hampshire and Virginia, so drivers must ensure, first and foremost, that their policies meet the legal requirements. 

If you’re insuring an older car that has depreciated in value over time, there’s no need to stress about specialized coverage. In fact, you may be better off insuring your vehicle to your state’s minimum coverage requirements.

However, if you’re insuring a classic vehicle, like that 1977 Pontiac Firebird Trans Am, you may have to meet a few requirements. For example, classic vehicles generally aren’t fit for daily use, so your insurer may require you to prove you have a separate daily driver. Similarly, your insurer may also require you to prove your classic vehicle is stored in a way that helps it retain its value. 

A car becomes a classic when it’s older than 20 years old; thus, it requires classic car insurance in comparison to standard insurance. Classic cars need specialized insurance because their value appreciates over time. Thus, coverage limits should be raised as the value increases.

Whether you’re shopping for car insurance for an old car or a classic vehicle, the best way to get a policy that meets all your needs is to get and compare quotes online. Right here at Clovered, you can get a classic vehicle insurance quote with our free, easy-to-use quoting tool.

Just input some information about your vehicle, and you’ll have your quote quicker than Bandit can evade Sheriff Buford T. Justice! If you’d rather chat with a professional about your classic vehicle insurance, you can contact one of our licensed agents at 833-255-4117 or [email protected].