Car enthusiasts invest hours of time, sweat, and money into restoring classic cars for all to enjoy. You can find these beauties at car shows all over the country. If you’re lucky enough to own one of these machines, you need to know where to get the best classic car insurance.
What Is a Classic Car?
Not everyone in the automobile world agrees on what makes a car a classic. However, for most people, a classic car is an automobile over 20 years old, while an antique car is over 45 years old. Vintage cars are yet another category made up of cars built between 1919 and 1930.
The definition of a classic car can even vary from state to state. For example, California classifies cars built after 1922 and at least 25 years old as historic vehicles, while those with a 16-cylinder or larger engine built between 1922 and 1965 as horseless carriages. In New York, a vehicle has to be 25 years or older to get historical license plates, while Montana has that set at 30 years.
The Classic Car Club of America (CCCA) is stringent in its definition of a classic car. The car’s manufacture date must be between 1915 and 1948, with superior craftsmanship, fine design, and high engineering standards. Not just any old car can qualify as a classic for the CCCA. The Antique Automobile Club of America defines classic cars as any vehicle over 25 years of age.
Insurance companies will also have their own definitions of what is and isn’t a classic car, so when you insure your vehicle, talk to your agent about how their company will classify it. You may also find that insurance companies place other criteria on cars to qualify as a classic, including that they cannot be used for everyday use and need to be stored properly. Your insurance agent should provide you with the relevant information for insuring your classic car.
What Is Classic Car Insurance?
Classic car insurance is a special policy that you’ll need to take out to cover your vehicle. You’ll need to have your car appraised by an expert to determine its value for an agreed value policy. This value can be anywhere from $10,000 to $100,000, depending on your vehicle’s uniqueness. Once your vehicle has an appraisal, the insurance company will provide you with an agreed value policy to cover any damages to your classic car. Typically, this requires your agent to adjust the coverage and value manually.
Unlike traditional vehicles that depreciate the moment you drive them off the lot, your classic car value will not decrease. In fact, it may go up over time, so you’ll want to review your policy every year or two to ensure that you have adequate coverage based on your classic car’s most current value. You may also want to consider adding specialized coverage to your classic car, such as:
- Increased replacement cost. This coverage will pay the difference if your vehicle exceeds the agreed value over time.
- Roadside assistance. Classic cars can break down on their way to a car show, and this coverage would provide you with services such as towing and tire changes.
- Auto show medical reimbursement. If someone is injured near your vehicle at a car show, this insurance will cover their medical bills.
- No attendance required. When you’re away from your car, such as when it’s on display at a car show, this insurance will cover any damages.
- Spare parts coverage. During a covered incident, this coverage will pay for any theft or damage of spare parts, like gears or valves.
- Cash settlement option. If your car is stolen or totaled, this insurance lets you choose to take a cash payout that doesn’t need to be used to repair or replace your classic car.
Disadvantages of Classic Car Insurance
Classic car insurance does have a few drawbacks, including mileage limits, fewer available discounts, and fewer driving-related coverage options. There might be a limit on how many miles you can drive your classic car or how far away you can take it to car shows. Discounts, such as bundling or safe driver, are rare because many providers that offer this insurance are smaller, more niche companies. You may have fewer options for coverage because of the size of the insurance provider’s company as well.
Where Do You Get the Best Classic Car Insurance?
Finding the best classic car insurance is essential regardless of the type of classic car you own. You should also take the time to research each insurance provider and request quotes from several insurance companies to be sure you’re getting the best value for your money. According to MarketWatch, the five best classic car insurance companies are:
Grundy Insurance
This company has
- Unlimited mileage
- 8.5/10 customer experience rating
- Availability in all 50 states
- 100% vehicle value guaranteed in total loss
- Spare parts coverage up to $500
- Trip interruption coverage up to $600
- Towing and labor coverage up to $250
Hagerty Insurance (Progressive)
You’ll find this company has
- Unlimited mileage
- 8.5/10 customer experience rating
- Some options that are not available in all states
- Coverage for spare parts, trip interruptions, tools, and roadside assistance
- A+ rating from the Better Business Bureau
American Collectors Insurance (USAA)
If you choose this company, you’ll find it offers
- 7,500 annual mileage
- 9.0/10 customer experience rating
- Availability in all 50 states
- Coverage for vehicles in restoration and for spare parts, as well as automatic coverage for newly acquired vehicles
- Collectors Auto Reimbursement Endorsement for roadside assistance, cosmetic damage reimbursement, theft reward, car show expense reimbursement, and more
- A rating from BBB
American Modern Insurance (GEICO)
Choose this company for
- Unlimited mileage
- 7.0/10 customer experience rating
- Availability in all 50 states
- Protections that include an agreed total loss settlement, spare parts, trip interruption, pet, and new purchase
- A++ from BBB
Heacock Classic Insurance
This car insurance company provides
- 6,000 annual mileage
- 9.0/10 customer experience rating
- Availability in 48 states (not Alaska or Hawaii)
- Roadside assistance
- Spare parts coverage up to $2,000
As a classic car enthusiast, you can appreciate how important it is to insure your beautiful vehicle to protect your investment. When you purchase a new policy or renew a classic car insurance policy, shop around and check out these companies for the best classic car insurance.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
