Do I Need Special Insurance for a Classic Car?

Maybe it’s the car you dreamed about owning when you were younger. Maybe you spent years restoring it in your garage. Or maybe it’s a vehicle that’s been in your family for decades.

Whatever the story, a classic car usually isn’t just another vehicle.

So, should you insure it like one?

If you own a classic, collector, antique, or specialty vehicle, classic car insurance may offer coverage that better reflects how you use your vehicle and what it’s actually worth.

Here’s what you should know.

What Is Classic Car Insurance?

Classic car insurance is coverage designed specifically for vehicles that are collectible, historically significant, unique, or simply used differently than an everyday vehicle.

Depending on the insurance company, eligible vehicles may include:

• Classic and antique cars
• Collector vehicles
• Muscle cars
• Hot rods and street rods
• Restored vehicles
• Exotic or specialty vehicles
• Certain modified vehicles
• Classic trucks

Eligibility requirements vary by insurance company. The age of the vehicle is only one consideration.

How the vehicle is stored, how often it’s driven, its condition and value, and whether you have another vehicle for everyday transportation can all affect eligibility.

Why Not Just Put a Classic Car on Your Regular Auto Policy?

You may be able to insure certain older vehicles on a standard auto policy, but that doesn’t necessarily mean it’s the best option.

One of the biggest considerations is how your vehicle’s value will be determined if something happens to it.

Most everyday vehicles depreciate over time. A well-maintained, rare, or professionally restored classic car can be a very different story.

Imagine you’ve spent years restoring a vintage vehicle. You’ve invested in the paint, engine, interior, hard-to-find parts, and countless hours of work.

You want an insurance policy designed to appropriately address the value of that investment.

What Is Agreed Value Coverage?

One feature you may encounter with collector car insurance is agreed value coverage, although terminology and coverage can vary by insurance company.

With agreed value coverage, you and the insurance company establish an insured value for the vehicle when the policy is written, subject to the terms and conditions of the policy.

This can be especially important with classic vehicles because determining their value isn’t always as simple as looking up the price of an average used car.

The vehicle’s year, make, model, rarity, condition, restoration work, modifications, documentation, and current collector market may all play a role in its value.

When comparing classic car insurance options, make sure you understand exactly how your vehicle would be valued in the event of a covered total loss.

Is Classic Car Insurance Expensive?

You might be surprised to learn that classic car insurance isn’t necessarily more expensive than standard auto insurance.

One reason is that many collector vehicles aren’t used for everyday transportation.

Your classic car may spend most of its time safely stored away and only come out for car shows, club events, weekend drives, parades, or special occasions.

Insurance companies may take this limited use into consideration when determining eligibility and pricing.

Of course, your actual premium will depend on your vehicle, driving history, coverage, usage, location, insurance company, and other underwriting factors.

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Can I Drive My Classic Car Whenever I Want?

This is an important question to ask before choosing a policy.

Classic car insurance may have guidelines or restrictions regarding how the vehicle can be used or how many miles it can be driven.

Some policies are designed primarily for pleasure driving, exhibitions, club activities, parades, and car shows rather than commuting or everyday transportation.

Requirements can vary significantly between insurance companies.

The important thing is to be upfront about how you actually plan to use your vehicle. Your insurance agent can help you find coverage that fits rather than discovering after a claim that your policy doesn’t match your driving habits.

Does My Classic Car Have to Be Kept in a Garage?

Possibly.

Many collector vehicle insurance companies have requirements regarding how and where the vehicle is stored when it isn’t being driven.

A secure, enclosed garage or another approved storage location may be required.

If your classic car is stored somewhere other than your home—or if you don’t have an enclosed garage—talk to your agent about it before purchasing coverage.

What If I’m Still Restoring My Classic Car?

You don’t necessarily have to wait until the restoration is finished to start thinking about insurance.

A project vehicle can represent a significant investment even if it isn’t road-ready yet.

Between the vehicle itself, parts, paint, engine work, upholstery, and other improvements, you could have thousands of dollars invested before the car ever leaves the garage.

Depending on the insurance company, coverage options may be available for vehicles undergoing restoration.

If you’re working on a project car, tell your insurance agent about it. Don’t assume your homeowners or standard auto insurance automatically provides all the protection you need.

What About Spare Parts and Specialty Equipment?

Anyone who owns a classic car knows the car itself may only be part of the collection.

You might also have original parts, replacement parts, wheels, specialty tools, automotive memorabilia, or that one nearly impossible-to-find component you finally tracked down.

Some collector car policies may offer coverage options for spare parts or automotive equipment, subject to policy terms and limits.

If you’ve accumulated valuable parts or equipment, make sure they’re part of the conversation when reviewing your insurance.

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Who Qualifies for Classic Car Insurance?

Every insurance company has its own requirements, but eligibility may depend on factors such as:

• The age and type of vehicle
• The vehicle’s condition and value
• How often it’s driven
• How the vehicle is used
• Where and how it’s stored
• The driver’s history
• Whether you have another vehicle for everyday transportation

Simply owning an older car doesn’t automatically mean it qualifies for classic car insurance.

An independent insurance agent can help determine whether your vehicle is eligible and what coverage options may be available.

What Do I Need to Get a Classic Car Insurance Quote?

Before requesting a quote, gather some basic information about your vehicle.

Your insurance agent may ask about its year, make, model, condition, estimated value, modifications, restoration work, annual mileage, storage location, and how you plan to use it.

Photos, receipts, appraisals, or restoration records may also be helpful or required depending on the vehicle and insurance company.

If you’ve invested significant time and money into your vehicle, keep good records. Documentation can be especially valuable when determining the appropriate amount of coverage.

Your Classic Car Deserves the Right Coverage

A classic vehicle isn’t just another car sitting in the driveway.

It may represent years of work, a significant financial investment, a family memory, or something you’ve dreamed about owning for decades.

Your insurance should take that into consideration.

At Blue Marsh Insurance, we’re an independent insurance agency. That means we can help you explore classic car insurance options from multiple insurance companies and find coverage that makes sense for your vehicle and the way you enjoy it.

Whether you just bought your first classic, have a garage full of collector vehicles, or are finally finishing that restoration project, we’re here to help.

Before you take your pride and joy out for its next drive, talk to the Blue Marsh team about protecting it with the right classic car insurance.

For a complimentary classic car insurance proposal, click here!

A little more about Blue Marsh Insurance…

When he founded Blue Marsh, Tom Davenport wanted to create a different kind of insurance company. One that’s built on personal relationships and a local presence. One where you, the customer, feel more like a friend.

As an independent insurance agency, Blue Marsh Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price.

If you’re interested in starting a quote online or having us take a look at your current policies, click here!