Do Classic Cars Need Insurance?

Insurance is one of the best ways to protect your investment. Classic cars are valued at different rates than regular cars and often need a different type of insurance. It's also important to be aware of the difference between a classic car and an antique car when deciding what insurance is best for your car.

What is a Classic Car?

The definition of a classic car varies by state. The Classic Car Club of America claims only cars made between 1925 and 1948 qualify as a classic. It also must be in good running order and fully restored. The club also takes qualifying items, like power brakes, into consideration when determining if a car is considered a classic.

In terms of insurance, identifying a classic car becomes a little more difficult. Some insurers will consider a car over 10-years-old to be a classic, while others might deem cars made during the 1970s and 1980s not to be classics due to high production runs in those years.

Classic cars can (but not always) include modified collector cars, replicas, reproductions, restorations and modern classics. Your car will likely not be covered if it’s a restoration built to less than 50 percent original standards, a racing car, has a nitrous oxide or jet engine, or if it’s considered a kit car.

What is an Antique Car?

Antique cars are generally over 25-years-old, completely restored to their original specifications and in full running order. Some states make exceptions for cars that are over 20-years-old. A car cannot have any modifications at all for it to be considered an antique.

If you’re unsure if your car qualifies as an antique or classic car, licensed agents can talk you through it and help you determine which insurance is better for your car.

How Does Classic Car Insurance Work?

Classic car insurance has limitations and restrictions that regular car insurance doesn’t. Your insurance provider will set a limit on the amount of miles you can drive the car each year. Limits generally don’t exceed 5,000 miles. They might also require you to keep your classic car in a secure garage to help protect it from weather damage and theft.

Most insurance companies will also require you to own another car for daily use to prevent you from reaching your mileage limit on your classic. Some insurers refuse to offer insurance to owners of classic cars who are younger than 30-years-old.

In most instances, you can have a specialty insurance agent assess your car and determine an “agreed value” on your car. This is different from the actual cash value (ACV) of a regular car. The agreed value of your car may be determined by either the auction prices of similar cars or the appraised market value of your car at the time of inspection.

Classic cars are valued at different rates than regular cars and often need a different type of insurance.

Why is Classic Car Insurance Necessary?

Many classic car owners put their cars under regular auto insurance policies believing that will be enough, but that’s not the case. Regular auto insurance policies consider the value of your car will depreciate over time, meaning they’ll pay out less money for accidents as the years go by. In most instances, classic cars gain value over the years. In the event of an accident in your classic car, having only plain car insurance will cause you to lose money.

Classic car insurance offers all the same coverage as regular car insurance, including liability, collision, and comprehensive. In most cases, it comes at a lower cost, as your classic car won’t be on the road nearly as often as your daily use vehicle. This means, you can save between 20 and 40 percent on your classic car insurance.

Some insurance providers also offer specialty towing services for classic cars with soft straps and guaranteed flatbed towing. Some will also replace your damaged vehicle with original parts.

If you’re still unsure about whether or not you should purchase classic car insurance in addition to your regular auto policy, please contact and agent today who will be happy to discuss your needs.