If you’re interested in purchasing a classic car, you may be wondering what the insurance cost will be. There are a few key differences between insurance coverage for classic cars and newer cars, and understanding these differences can help you better prepare to buy an older vehicle. Here we explore what a classic car is, the average classic car insurance costs, and how to get your classic car insured when making a purchase or beforehand.
What’s Considered a Classic Car?
The term “classic car” depends on who you’re speaking to. Most states consider a car vintage or classic once it is between 20-30 years old (depending on which state you live in), but many auto insurance companies consider a vehicle classic if it was built before the 1980 model year. There are also categories for vintage or collector’s vehicles, which may be even older or historically significant, and insurance companies insure these types of vehicles the same way they would a classic car.
What Is Classic Car Insurance?
Insurance companies typically separate the insurance policies for classic cars from regular cars. One of the most important differences between regular insurance policies and classic car insurance policies is the agreed value coverage. This value is what you and the insurer agree upon in terms of what the classic car is worth, and it typically involves the review of an appraiser. When an insurance company uses this method, the agreed-upon value is how much your vehicle will be insured for. Insurance policies are manually adjusted based on the rising or falling value of the vehicle over time.
In many cases, insurance providers who offer coverage for classic cars have extensive experience in working with collector or rare vehicles. Their agents often have familiarity with classic car policies and can help you find the right coverage based on your specific vehicle.
Types of Classic Car Coverage
There are a few common types of classic car coverage. Knowing your options can help you best decide which one is right for you. These coverage options include:
- Spare parts coverage
- Tiered mileage plans
- Agreed value
- Multi-line discounts
- Auto show medical coverage
- Worldwide coverage
Depending on the type of policy you choose, classic car insurance can offer many benefits to policyholders, including:
- Roadside assistance: This includes regular roadside assistance as well as specialty assistance, such as towing the vehicle with only a flatbed tow truck to avoid damage.
- Increased replacement cost: This comes into play when your car increases to a value that is more than the original agreed-upon value, and this benefit will accommodate for the difference in the new value.
- Spare parts coverage: This part of the policy covers any theft or damage to spare parts and gear.
- Auto show medical reimbursement: This covers you should someone get injured while you’re showing your car at a car show or other event.
- No attendance required: This offers coverage when you’re displaying your car and something happens to it while you’re not in the same vicinity as the vehicle.
- Cash settlement: This coverage refers to the ability to receive a cash settlement in the event that your classic car is totaled or stolen.
The following are a few top insurance companies that specialize in insuring classic cars:
- Progressive
- American National
- Condon Skelly
- GEICO
- Safeco
- Hagerty
- Farmers
How Much Does Classic Car Insurance Cost?
Classic car insurance is often much cheaper than regular car policies since it’s expected that these vehicles will be driven fewer miles annually than a regular car. Typical rates for classic car insurance policies average between $200 and $600 a year, depending on your vehicle’s value. The agreed-upon value of the classic car and both the age and driving history of the vehicle’s driver are other factors taken into consideration when an insurance company determines the price of classic car insurance.
The reason this type of insurance is cheaper than regular car policies is that insurance providers expect you to use your classic car differently than you’d use a regular vehicle. For example, you likely won’t drive your classic car daily or drive it in heavy highway traffic, whereas you would likely do so with a regular commuter vehicle. You’re also more likely to take much better care of a classic car than a standard automobile, as well as store it in a safe and temperature-controlled garage.
How To Get Your Classic Car Insured
Getting your classic car insured is similar to getting a regular vehicle insured. You’ll first need to get in touch with your insurance provider and give them details about your classic car. They may also ask you to provide photos of the car, especially if your vehicle has been modified. You may also need to provide other information, including the make, model, and year of the car as well as its mileage.
Other factors that insurance companies may consider when insuring your classic car include ensuring that you:
- Use another vehicle to commute or for regular travel
- Don’t race the vehicle
- Limit your classic car’s on-road miles
- Keep your classic vehicle in a climate-controlled and fully enclosed location
If you’re unsure of what your insurance premium will be, contact your insurance agent for a quote on coverage for your classic auto.
Classic car insurance often costs much less than regular car insurance. This is great news for those interested in investing in a classic vehicle. You also have plenty of insurance companies offering a range of coverage options to consider for your classic car. By doing a little research and following a few simple steps, you can find the best insurance for your classic vehicle to protect your investment and give you peace of mind.
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.
