TL;DR: To properly insure a vintage or classic car, you should choose a specialized classic car insurance policy with “agreed value” coverage. This ensures you and the insurer decide on the car’s value upfront, so if the car is ever totaled or stolen, you’ll be paid that full agreed amount (with no depreciation). In contrast, a standard auto policy only pays the car’s actual cash value after depreciation.
Classic car insurance is different because it accounts for the unique value and usage of vintage vehicles. So if you own a vintage auto, this article will cover everything you need to know about getting it insured. Keep reading!
(If you’re in the Chicago area and need help choosing coverage for your vintage auto, the professionals at Insure on the Spot can assist. Call 773-202-5060 for a free, no-obligation quote and to find the best protection for your classic car.)
How Does Classic Car Insurance Differ from Standard Auto Insurance?
There are several key differences that set classic car insurance apart from a typical auto policy:
Agreed Value vs. Actual Cash Value
With a classic car policy, you and the insurer agree on the car’s value upfront. If you suffer a total loss, the insurer pays that agreed amount in full (minus any deductible). Regular car insurance only pays actual cash value (ACV) (the car’s market value after depreciation) so you’d likely get far less money for a totaled vintage car under a standard policy. Classic cars often appreciate or hold their value, so agreed value coverage ensures your payout reflects the car’s true worth in the collector market.
Limited Usage and Mileage
Classic car insurance usually restricts how you use the vehicle. These policies are meant for pleasure drives, car shows, and special events – not daily commuting. For example, you might be limited to a few thousand miles per year (common limits are around 2,500 or 5,000 miles annually). Using a classic car as a daily driver is generally not allowed under these policies. You’ll need a standard auto policy if you intend to drive your vintage car every day.
Required Storage
Insurers typically require that a classic or antique car be kept in a secure, enclosed garage or storage facility when not in use. Keeping the vehicle indoors protects it from theft, vandalism, and weather damage, which is one reason classic car insurance can offer lower premiums. If you don’t have a garage, it may be hard to qualify for a classic policy.
How Do Insurers Determine a Classic Car’s Value for Coverage?
When insuring a vintage auto, one of the most important questions is how much the car is worth. Insurers generally use three methods to value a classic car for insurance purposes:
Actual Cash Value (ACV)
With an actual cash value policy, the insurer pays the vehicle’s depreciated market value at the time of loss. You have little control over that number – the insurer’s adjuster decides it, and it often undervalues a classic car. ACV coverage is rarely ideal for vintage cars since it may not reflect their true collectible worth.
Stated Amount (Stated Value)
A stated amount policy lets you declare a value for your car, but the insurer won’t necessarily pay that full amount. In a total loss, they pay either the stated amount or the actual cash value, whichever is lower. This means if you overstate your car’s value, you’ll only get the market value at claim time. Stated amount policies can be disappointing and are less common now than agreed value.
Agreed Value (Agreed Amount)
An agreed value policy is the gold standard for classic car coverage. You and the insurer agree on the car’s value upfront, usually based on an appraisal and documentation. That agreed amount is written into the policy. If your car is stolen or totaled in a covered incident, you are guaranteed to receive that full agreed-upon value (minus your deductible) – no haggling and no depreciation. For example, if you and the insurer agree your restored car is worth $50,000, the policy will pay $50,000 if it’s totaled, giving you peace of mind that you’ll recoup your investment. Agreed value coverage might require proof of the car’s condition, but it ensures your classic is financially protected. Given that vintage cars often appreciate, this is the recommended coverage type for most classic car owners.
Are There Mileage or Usage Restrictions on Classic Car Insurance?
When you sign up for a classic policy, you’ll typically agree to a maximum number of miles per year. Common limits range from 1,000 up to 5,000 miles annually, depending on the insurer. You’re expected to use the car only occasionally – for weekend cruises, club events, or car shows. If you exceed the mileage cap or start using the car for regular commuting, you could lose coverage.
In addition to mileage limits, the purpose of use is restricted. Classic insurance generally stipulates no daily commuting, no commercial use, and no racing. For example, if you take your vintage car to a race track and wreck it, that will not be covered under a classic car policy.
Another consideration for you is storage. You must store the vehicle in a locked garage or secure facility when it’s not being driven. Parking a classic on the street or in an open driveway is not acceptable to insurers.
Finally, you need to have a regular-use vehicle for everyday driving. Classic car insurance is only offered when your collectible car is a second vehicle. If a classic car is your only car, you won’t qualify for a classic policy.
Can I Drive My Classic Car Daily with a Classic Car Insurance Policy? Using your classic for everyday transportation would violate the policy terms in most cases. If you plan to drive it regularly, you’ll need to insure the car under a standard auto insurance plan.
Do I Need a Garage to Insure a Vintage Car? Almost always, yes. Insurance providers require that your classic or antique car be stored in a secure, enclosed space when it’s not on the road. This usually means a locked private garage at your home (or a storage facility). Without a proper garage, it will be very difficult to get classic car coverage. Insurers make secure storage a condition to minimize the risk of theft, vandalism, or weather damage.
What Special Coverages Can Classic Car Insurance Include?
One great aspect of classic car insurance is that it offers specialized coverages tailored to collector vehicles. When choosing a policy, look for options like:
Spare Parts Coverage
Many classic policies include or offer coverage for spare parts and automotive tools. This will pay to replace rare or hard-to-find parts you’ve collected for your car if they’re lost due to a covered event (for example, theft or fire in your garage). If you have a stash of extra parts, this coverage is important.
Restoration Coverage
If you’re restoring a classic car, some insurers offer coverage for a vehicle under active restoration, protecting it from hazards like fire or theft even when it’s off the road. They may also adjust the insured value upward as the car’s value rises during the project. This ensures your investment in parts and labor is covered throughout the restoration process.
Roadside Assistance & Towing
Classic car policies often provide specialized roadside help. This can include flatbed towing (to avoid damage to the car during transport) and sending mechanics who understand vintage vehicles. If your classic breaks down, you want a tow service that will handle it gently. Some policies also cover trip interruption expenses if a breakdown strands you away from home.
Cherished Salvage
If your car is ever totaled, a standard policy would usually take ownership of the salvage. “Cherished salvage” coverage lets you keep the wrecked vehicle after a total loss and still get a payout (typically the agreed value minus the salvage value). This means you can retain your car’s remains for sentimental reasons or parts, while still receiving the full insurance settlement.
Inflation Guard
Some insurers offer an inflation guard that automatically increases your car’s insured value by a small percentage each year. (For instance, a 5% inflation guard would raise a $50,000 agreed value to $52,500 at renewal.) This helps your coverage keep up with rising market prices for your vehicle.
Can I Insure a Classic Car That’s Being Restored? Yes. Many insurers offer coverage specifically for cars that are in restoration and not yet fully drivable. If your vintage car is currently a project, you can get a comprehensive policy to protect it against threats like theft, fire, or other damage during the restoration process. Often called “project car insurance,” this ensures that even while your car is in pieces, its value (including new parts you’ve added) is covered. As the restoration progresses and the car’s value increases, remember to update the policy’s agreed value to reflect its improved condition.
How Can You Save on Classic Car Insurance?
Classic car insurance is often quite affordable, but you can potentially save even more by taking advantage of various discounts:
Safe Driver Discounts
Maintaining a clean driving record helps keep your premium low. Many insurers also offer a discount if you complete a defensive driving or accident prevention course (often 5–10% off).
Limited Mileage
If you agree to a very low annual mileage cap (and stick to it), some insurers will give you a lower rate. The less you drive, the less the risk – and thus the lower your premium can be.
Multi-Car and Bundle Discounts
Insuring multiple vehicles with the same company (for example, several classics, or your classic plus your everyday car) can earn you a discount. Likewise, bundling your classic car policy with other policies (like homeowners or your regular auto insurance) may reduce your overall insurance costs.
Classic Car Club Membership
Being a member of a classic car club or enthusiast organization can sometimes get you a small discount. Insurers see club members as passionate, responsible owners. Mention any memberships when getting a quote to see if they qualify.
Shop Around
Rates and coverage options can vary between insurers, so it pays to get quotes from a few companies that specialize in classic car insurance. Make sure you’re comparing equivalent coverage – the same liability limits, agreed value, and extras – when looking at prices. Beyond price, consider the coverage details and the insurer’s reputation. This effort can reward you with a better deal for the coverage you need.
(Note: Classic car policies are already often about 36% cheaper than standard auto insurance on average, so using these discounts can make insuring your vintage vehicle even more economical.)
What Should You Look For in a Classic Car Insurance Company?
Picking the right insurer is just as important as picking the right coverage. Consider the following when choosing who will insure your vintage ride:
Experience with Classic Cars
Look for an insurer with a strong track record in classic or collector car insurance. Companies like Hagerty, Grundy, American Modern, and others specialize in this area and understand the nuances of vintage vehicle values and repairs. Even major insurers often partner with classic car specialists. An experienced provider is more likely to handle claims smoothly and value your car properly.
True Agreed Value Policies
Make sure the company offers genuine agreed value coverage (also called “guaranteed value”). It should be clear that if the car is totaled, they will pay the full agreed amount with no depreciation. Avoid insurers that only offer “stated value” or can’t promise a full payout.
Claims Reputation
Research the insurer’s reputation for claims service. You want a company known for fair and prompt claim settlements. Check reviews or ask fellow classic car owners about their experiences. A provider with excellent customer service and knowledgeable adjusters will make any claim situation much less stressful.
Local Agent Support
It can be a bonus to work with an insurance agent who understands your region’s laws and car culture. For example, Insure on the Spot’s agents in Chicago know Illinois insurance requirements and the needs of local classic car owners. A local expert can ensure your policy is compliant with state laws and tailored to your specific situation.
What is “agreed value” coverage and why is it important for classic cars?
Agreed value coverage means you and the insurer decide on your car’s value in advance, and that amount will be paid if the car is totaled or stolen. This is crucial for classic cars because they often don’t depreciate like ordinary vehicles – in fact, many increase in value over time. With an agreed value policy, you know your collectible car is fully insured for its true worth (whereas a regular policy would only pay the reduced actual cash value, which could be much lower).
Are there mileage or usage limits with classic car insurance?
Yes. Classic car insurance policies usually come with mileage limits (for example, a few thousand miles per year) and restrictions on use. They’re meant for occasional pleasure driving, shows, and club events – not daily driving. You also need to have another primary vehicle and keep your classic stored securely (typically in a garage) when not in use. These limits keep the car safer and help lower your premium.
What special coverage options should I look for in a classic car policy?
Look for coverages tailored to classic cars, such as restoration coverage (to protect the car while it’s being restored), spare parts coverage (covering valuable extra parts or tools), and specialized roadside/towing (e.g. flatbed towing for safe transport). You may also consider cherished salvage (letting you keep the car if it’s totaled) and an inflation guard (automatically adjusting your car’s insured value over time). These options address the unique needs of classic car owners.
How do I choose a good insurance provider for my vintage car?
Pick an insurer (or agent) with experience in classic car insurance and a solid reputation. Make sure they offer true agreed value policies and have positive customer feedback, especially on claim handling. It can be wise to use a specialty classic car insurer or a well-known company that partners with one. Also consider the insurer’s financial strength and whether they offer the specific features you want (like flexible mileage limits or strong roadside assistance).
Do classic car policies include any special perks or benefits?
Yes. Some policies include an inflation guard that automatically adjusts your car’s insured value to keep up with market changes, and many offer perks like club member discounts or other benefits for enthusiasts. These extras vary by company, but they can enhance your classic car ownership experience.
Can I get discounts on classic car insurance?
Definitely. You can often get discounts for having a clean driving record, completing a defensive driving course, or being a member of a classic car club. Insuring multiple vehicles or bundling your classic car policy with other insurance (like your home or daily driver) can also save money. Since classic car insurance is generally cheaper than a standard policy to begin with, these discounts make it even more affordable.
What’s the best way to compare classic car insurance quotes?
When comparing quotes, make sure each policy offers the same coverage limits and features – including the agreed value amount, liability limits, and any special coverages. Pay attention to mileage restrictions and deductibles as well. Don’t just choose the lowest price; consider the insurer’s reputation and whether they truly understand classic cars. By doing an apples-to-apples comparison, you’ll identify which policy provides the best overall value for your vintage auto.
Choosing the right coverage for your vintage auto is essential to safeguard not only its monetary value, but also the passion and history it represents. At Insure on the Spot, we specialize in helping classic car owners in Chicago and throughout Illinois find the perfect policy. Our team is happy to answer your questions and provide a free quote. Call us at 773-202-5060 or contact us online to get started. Protect your classic car and enjoy the drive knowing you’re fully covered!