A classic car is not just an old car
Insurance companies have different criteria to define a classic vehicle
Generally speaking
A car must be at least 20 to 25 years old
Well maintained or restored
And not used as a daily driver
It should also retain its original design and parts or be restored using authentic components
Why Classic Cars Need Special Insurance
Classic cars appreciate in value over time
Unlike regular cars which depreciate
You need an insurance policy that recognizes and protects that value
Standard car insurance typically uses actual cash value to determine payouts
That means depreciation is considered
Classic car insurance often uses agreed value
Which is a fixed amount both you and the insurer agree upon in advance
Key Features of Classic Car Insurance
Classic car insurance policies differ in several ways from standard car insurance
Here are the common features of a typical policy for vintage vehicles
Agreed Value Coverage
Both you and the insurance provider decide the value of your car beforehand
In case of a total loss
You receive the full agreed value
Low Premiums
Since classic cars are not driven daily
They pose less risk
Premiums are generally lower than standard policies
Mileage Limits
Classic car insurance often comes with mileage restrictions
You might be allowed to drive only 2500 to 7500 miles annually
Restoration Coverage
Some policies cover the restoration process
If your car is in the middle of being restored
Your insurer may offer coverage for parts and labor
Spare Parts Coverage
Many collectors store spare parts
A good policy includes coverage for those parts too
Roadside Assistance for Classic Cars
Special towing or roadside assistance is often included
Since classic cars may need extra care
Eligibility Criteria for Classic Car Insurance
Not every car or driver qualifies for classic car insurance
Below are some of the typical requirements insurers look for
Age of the Vehicle
Usually the car must be at least 20 or 25 years old
Some insurers also cover newer limited-edition models that are considered collectibles
Condition of the Vehicle
Your car should be in good working order or under active restoration
Photos or professional appraisals might be needed
Storage Requirements
Classic vehicles must be stored in a locked garage
Carports or driveways often do not meet insurer standards
Driving Record
A clean driving record is often a must
If you have serious violations or frequent claims
You may be denied coverage
Usage Restrictions
You must own a separate everyday car for daily use
Classic cars should only be used for exhibitions
Parades
And occasional pleasure drives
How to Choose the Right Classic Car Insurance
Picking the right policy involves more than just comparing prices
Here is how you can make an informed choice
Evaluate Coverage Options
Look for features like agreed value
Parts coverage
And roadside assistance tailored for vintage vehicles
Check the Insurer’s Reputation
Select a company with experience in classic car coverage
Customer reviews and claim handling records are valuable
Understand Mileage Limits
Make sure the mileage cap suits your usage pattern
If you attend frequent car shows
You might need a policy with higher mileage allowance
Ask About Discounts
Some insurers offer discounts for belonging to a classic car club
Installing anti-theft devices
Or maintaining a clean driving record
Know the Claim Process
Ask how claims are handled
Classic car claims might involve appraisers or specialists
Understanding the process ahead of time saves future stress
How to Apply for Classic Car Insurance
Getting coverage is relatively easy if you meet the criteria
Here’s a step-by-step overview
Gather Documentation
Include photographs
Maintenance records
Proof of value or appraisals
And details about your daily-use vehicle
Choose an Insurer
Select a provider that specializes in classic or collector cars
Hagerty
Grundy
American Collectors Insurance
And State Farm’s classic division are popular choices
Request a Quote
Provide the necessary details and request a quote
Be honest about usage and storage
Inaccurate information may lead to claim denial
Review and Finalize the Policy
Read the fine print
Confirm the agreed value
Mileage limits
And exclusions before signing
Common Mistakes to Avoid
Insuring a classic car requires attention to detail
Avoiding these common errors can help you get the right protection
Using Standard Car Insurance
It usually will not cover the full value or provide proper benefits for your classic vehicle
Overestimating the Value
Work with a trusted appraiser to determine a fair agreed value
Overestimating can lead to policy disputes
Ignoring Policy Restrictions
Violating storage or mileage rules may lead to denied claims
Not Updating the Policy
As your car gets restored or increases in value
Update your policy to reflect changes