Maintaining insurance coverage is one of many expenses to account for when it comes to car ownership (alongside factors like costs for fuel/recharging, scheduled maintenance, and registration/tax). It provides peace of mind for even the most careful and attentive of drivers, should an unavoidable incident involving another motorist or bystander occur, and is legally required in almost every state, whether you drive a run-of-the-mill Toyota Camry or a one-of-a-kind Rolls-Royce Phantom. But for certain types of vehicles, a traditional insurance policy may not be appropriate, given the category of vehicle it is classified (and/or registered) as, or if conditions beyond its control deem it not a standard automobile on the road. This is where classic car insurance comes in.
In recent years, insurance coverage tailored to address vehicles under these unique circumstances has begun to be offered in the industry, intended to provide the same insurance benefits to owners of these special vehicles, but under terms specifically tailored to their case. Applying for insurance on a classic car seems like a strong benefit, but what exactly does this type of coverage consist of, and does it offer the same level of security as regular car insurance to justify any higher premiums?
All information has been cited by reputable sources, including relevant insurance agencies and the latest state government laws.
What Is Classic Car Insurance?
Plans, Coverage Made Specifically For Insuring A Classic Car
2024 Concours Of EleganceConcours Of Elegance
Insuring a classic car offers the same degree of coverage and protection as any standard vehicle – per most states within the United States’ requirements that any registered vehicle must carry before being used on the road, as part of a vehicle purchase, or being transferred to a new owner. These still satisfy the minimum liability requirements expected of most vehicle insurance plans (as is the industry standard), and can be adjusted to offer the same benefits on par with full coverage plans, or customized with add-ons.
The difference is that these types of insurance plans are tailored within the context of “rare, historically significant, and collectible vehicles,” which offer far more personalization on the insurance coverage benefits or terms based on the policyholder’s needs or intentions with the vehicle. For example, a policyholder of classic car insurance for their beloved Jaguar E-Type or collection of air-cooled Porsches would ideally use them in a far different manner compared to a standard production vehicle like a Toyota RAV4.
“A classic car insurance policy provides liability coverages, uninsured and underinsured motorist coverage, and medical coverage like personal injury protection or medical payments’ coverage… The primary difference is the coverage it provides for your vehicle under collision and comprehensive coverage; this is often based on the agreed value of your vehicle.”
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What Sets Classic Car Insurance Apart from Standard Car Insurance Coverage?
Ford Bronco Restomod Kindred MotorworksKindred Motorworks
One of the main benefits of classic car insurance is that it offers more flexibility when it comes to insuring these types of vehicles, whether it’s a unique vehicle to begin with, a certain collectible/vintage model that has appreciated from its original retail value (verified), or any degree of unique circumstances that may apply to the vehicle itself (e.g. a one-off prototype). Distinctly, classic car insurance coverage takes into account the specific value that applies to the vehicle, which is negotiated between the insurer and the policyholder, who will typically also apply industry or market research to help with the appraisal of the vehicle.
“This amount is an agreement between you, as the owner, and the insurer on the value of the vehicle for which the policy is written for. This amount usually considers industry guidelines and is generally reviewed upon policy renewal.”
Liability or full coverage may be straightforward when applying to a modern SUV, such as a current-gen Ford Bronco Sport, but for a classic Ford Bronco that has been significantly modified from its factory state or is a pristine ‘concours’ example that currently serves as a functional museum exhibit, it makes sense to apply an insurance plan tailor made to account for its unique provenance or current state, given its primary usage and intentions under its custodians.
Adding to this, classic car insurance coverage can apply to a far more diverse range of vehicles that fall under a niche, or specialty categories, which can include:
- Collectible vehicles (1970s and older traditional vintage/antique cars)
- Modern classic/enthusiast vehicles – those made in the 1980s to 1990s that are now considered “modern classics,” limited edition models, hypercars, certain exotic models
- Modified vehicles – replicas, kit cars, unique (or verified) “one of one” prototypes/builds, or major reconstructed vehicles
- Motorsports vehicles – open-wheel racers, track-day-only models
- Military vehicles – decommissioned armed forces vehicles that are now privately owned or by a non-profit organization for show/display (tanks, Jeeps, Humvees, APCs)
- Retired commercial vehicles that are now privately owned – ambulances, fire trucks, police vehicles
Certain vehicles, however, may not be eligible due to how they are primarily used, or their state is far too much of a liability to issue a payout effectively. This can include certain off-road/4x4s vehicles, commercial-use vehicles, or modern classic-era vehicles that just fall short of the insurer’s qualifications. But it’s important to highlight that when approaching any classic car insurance coverage, there is no universal solution or set agreement that applies to every type of vehicle that is eligible for this specialist coverage.
Can Anyone Apply For Insurance on Antique Cars?
Not All (Drivers And Vehicles) Qualify Immediately
Only six Cobra Daytona Coupe race cars were ever made, and they are as rare as hens’ teeth. This is a replica.Hillbank Motor Corporation
Unlike a standard vehicle insurance plan, classic car insurance coverage has several requirements that must be met, or checked as part of the initial appraisal process, before the insurer confirms a policy in writing. Below, we list several conditions that these specialty insurance companies, like Hagerty, take into account:
Usage
Most companies providing insurance on antique cars, or vintage/enthusiast models, expect that these vehicles will not be on the road all year around, but only for a certain number of days (weekends, holidays), in a pre-determined environment or area, or for organized events where liability is generally lower than on a public road setting with other road users to account for. An advantage of taking this factor into account is that policyholders may pay for a more cost-effective premium, versus the equivalent under a standard vehicle insurance plan. Many will also require those covered under the policy to carry a standard driver’s license, alongside a separate regular vehicle use insurance policy.
“A [classic car insurance] policy through Hagerty allows you to use your collector vehicle for club functions, exhibitions, organized car meets, tours, and even occasional pleasure driving – it just can’t be your daily driver.”
Storage
Especially for insurance policies covering vintage/antique car collections, or a series of vehicles under one policyholder, most insurers will like to see that the vehicles being appraised are well cared for, and protected from natural disasters or third-party elements. Most will accept enclosed spaces/structures like a garage, barn, or storage unit, but may also consider private carports, parking garages, vehicle trailers, or specific types of driveways as acceptable.
Driving History
Some insurers want more scrutiny and will require a background check on the prospective policyholders to confirm their past driving record is not a liability. Insurers pay close attention to any number of infractions that can include, but may not be limited to, alcohol-related offenses, reckless driving (causing injury/death), or excessive speeding violations.
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What Are The Key Benefits Of Classic Car Insurance?
Is The Extra Premium (And Conditions) Justified?
ECD Automotive Design. Jaguar E-Type GTO. Grand Touring Open. Restmod. CabinECD Automotive Design
Adding to the protections classic car insurance coverage provides, the fact that it can be customized based on the clients’ preferences or requirements, taking into account the unique status the vehicle holds, is one of the reasons that argue in favor of this type of insurance plan.
More Secure Payout Value
Certain insurance plans on a classic car will guarantee that the policyholder will receive the full, agreed-upon value for their vehicle in the event of an applicable total loss incident, in contrast to a standard vehicle payout that may not reflect the car’s full value. This particularly benefits certain classic/antique cars that may hold a specific price, or are expected to increase based on market trends. More diligence is required to meet this, but with the consultation of classic car/industry experts, relevant paperwork, and appraisals to ensure this figure is realistic.
“More commonly known as ‘agreed value’ coverage, it means you tell us the value of your classic, and we’ll affirm that it’s a fair, accurate number. Then, we guarantee that value will be paid to you in the event of a covered total loss.”
More Classic/Vintage Vehicle Specific Benefits
Certain specialty insurers can also offer more flexibility or benefits tailored to these specific vehicles in mind. This can range from protection against interior damage, operational damage (damage to the powertrain or any drivetrain components), and can cover repairs covered under warranty using OEM, aftermarket, or specialty parts that will preserve the vehicle’s originality, especially for high-value models intended to be kept in museum/showroom condition.
“The insurance covers unforeseen and sudden damage, destruction, or heavy soiling of all parts of the vehicle interior due to external impact. You can also purchase car insurance add-ons, such as roadside assistance including onward travel, vehicle legal protection or bonus protection.”
FAQs
What is the best insurance for a classic car?
Several factors must be considered when shopping around for the right insurance policy on a classic car. This can include how often you use your classic car, what type of special enthusiast/antique vehicle category it falls under, how it is primarily utilized, and any restrictions on mileage per month or annually.
What qualifies a car to be a classic?
Conditions and terms can differ depending on the insurance agency and policy that applies to these types of vehicles, but generally, to qualify as a classic/vintage vehicle, most insurance companies state that a car must be more than 25 years old, made by a certain range of brands/manufacturers, and not used as the registered owner’s main source of daily transport.
What cars can get classic car insurance?
The types of vehicles that are eligible for classic car insurance coverage are diverse and can vary. They include, but are not limited to, classic cars/trucks confirmed to carry “collectible” value, replica/restomod vehicles, vehicles extensively modified or made for use solely in track environments, and certain vehicles that fall under a ‘show and display’ category.
Sources: GEICO, Hagerty, AXA, Porsche, Hillbank Motor Corporation, ECD Automotive Design, Kindred Motorworks, Concours of Elegance
