A classic car typically falls into one of several categories—classic, antique, or collector. An antique car is typically 25 years or older and is mainly used for shows or restoration projects. Some vehicles are considered a collector’s item due to their rarity or historical significance, and a collector car may require different insurance considerations. These vehicles are often 20 years or older, have historical interest, and are usually kept in good condition—the car’s condition is a key factor in insurance eligibility and premiums. Because of their unique value and limited use, classic car coverage is needed to protect these unique vehicles. To insure vehicles like these, owners need special insurance tailored to their needs.
1. Agreed Value vs. Actual Cash Value
One of the biggest differences with classic car insurance is how the vehicle’s value is determined. With standard auto insurance, a car’s value depreciates over time. Traditional auto insurance typically uses depreciated or actual cash values, which may not reflect a classic car’s true worth. In contrast, classic car auto insurance offers specialized valuation methods tailored to collectible vehicles. While market value is often used in standard policies to determine premiums and payouts, classic car insurance relies on agreed value to better reflect the car’s true value, especially as classic cars often appreciate due to rarity and condition.
With agreed value coverage, you and your insurance provider agree on the car’s value upfront to ensure proper coverage. Determining the car’s worth is essential for setting this agreed value. This approach means that, in the event of a total loss, the full insured value is paid out, protecting the full value of your vehicle. Coverage means can differ, with options like agreed value or actual cash value, so it’s important to choose the right type for your classic car.
2. Limited Use, Lower Risk
Most classic car policies are written with the understanding that these cars aren’t driven daily. These vehicles are not used for everyday driving or routine driving, and everyday use is typically restricted under classic car policies. They’re usually used for weekend cruises, shows, club events, or parades—not commuting to work or running errands. Classic cars are not considered daily drivers. Because of this limited use, premiums can often be more affordable than standard auto insurance, even with higher value vehicles. Insurers may also set annual mileage limits to help keep premiums low.
3. Special Repair and Restoration Needs
Classic cars can be expensive and time-consuming to repair. Parts are harder to find, and repairs often require specialized mechanics who understand each vehicle’s unique restoration needs, which are considered in coverage. A classic car policy may offer coverage that reflects those realities—including coverage for spare parts or restoration work in progress. However, vehicles in poor condition may not qualify for certain insurance policies.
4. Mileage and Storage Requirements
Specialized classic car insurance often comes with conditions like mileage limits and secure storage (such as a locked garage). These aren’t just restrictions—they help keep premiums low and ensure the vehicle stays protected.
5. Understanding Insurance Terms
Navigating classic car insurance can feel overwhelming if you’re not familiar with the terminology. Understanding a few key terms will help you make informed decisions about your classic car insurance policy and ensure your vehicle is properly covered.
- Agreed Value Coverage: This means you and your insurer decide on your classic car’s value upfront. If there’s a covered loss, you’ll receive this agreed amount, not a depreciated figure.
- Actual Cash Value: Unlike agreed value, this is the amount your car is worth on the current market, factoring in depreciation. Standard car insurance often uses actual cash value, which may not reflect your classic’s true worth.
- Liability Insurance: This covers damages or injuries you may cause to others in an accident. It’s a core part of any car insurance policy, including classic car insurance.
- Specialized Coverage: Classic car insurance policies often offer extra protection, such as spare parts coverage, which helps pay for rare or hard-to-find parts if they’re lost or damaged.
By getting comfortable with these terms, you’ll be better equipped to choose the right coverage for your classic and make sure your prized vehicle is adequately protected.
6. Extra Protection for Extra Value
Many classic car owners also invest in things like custom paint jobs, rare parts, or historical documentation. Classic car policies may offer options for covering these extras, which standard policies usually don’t. Regular auto insurance, regular auto, and a regular auto policy typically do not cover these extras, and standard auto policies lack the specialized options found in classic car insurance.
7. Policy Customization
One of the biggest advantages of classic car insurance is the ability to customize your policy to fit your vehicle’s unique needs. Classic car owners can work with their insurer to select the right level of liability insurance, choose a deductible that fits their budget, and add specialized coverage options like roadside assistance or spare parts coverage.
Many classic car insurance policies also offer flexible features, such as mileage limitations to help manage insurance costs, or payment plans that make coverage more affordable. Whether you own a vintage military vehicle, a rare collector’s item, or a restored classic, a customized insurance policy ensures your car is adequately protected without paying for unnecessary extras.
By partnering with an experienced insurance agent, you can build a classic car insurance policy that balances comprehensive coverage with cost-effectiveness—giving you peace of mind every time you take your classic out for a spin.
8. Claims Process: What to Expect
Filing a claim on your classic car insurance policy doesn’t have to be stressful—especially if you know what to expect. Most insurers have dedicated claims teams who understand the unique needs of classic cars and will work closely with you throughout the process.
If you need to make a claim, you’ll typically be asked to provide documentation such as photos of the damage and repair estimates. Some classic car insurance policies may require you to use a specific repair shop that specializes in classic vehicles, or to show proof that your car is stored in a private garage to ensure it’s been properly protected.
By keeping your records organized and understanding your insurance policy’s requirements, you can help ensure a smooth and efficient claims experience. If you ever have questions, don’t hesitate to reach out to your insurer—they’re there to help you get your classic back on the road.
9. Choosing the Right Insurance Provider
Selecting the right insurance company for your classic car is just as important as choosing the right coverage. Not all insurers are created equal—some specialize in classic car insurance and truly understand the needs of collector cars, while others may only offer standard car insurance options.
When comparing providers, look for those with experience in classic car insurance, like American Collectors Insurance, and check that they offer the specialized coverage your vehicle requires. Pay attention to details such as mileage limitations, driving record requirements, and storage requirements to make sure you qualify for the best rates and coverage.
It’s also wise to read reviews, ask about customer service, and compare insurance costs and policy features. By doing your homework, you’ll find a classic car insurer that offers the right balance of protection, service, and value—so your classic is covered for every mile ahead.
Is Classic Car Insurance Right for You?
If your vehicle meets the following criteria, classic car insurance might be a perfect fit:
- It’s at least 20 years old and in good condition
- It’s not used for daily driving
- It’s stored in a secure garage
- You want to protect its true value—not a depreciated one
What Qualifies as a Classic Car?
Before diving into the differences, it’s important to understand what makes a car “classic.” Generally, a classic car is:
- At least 20–25 years old
- Maintained or restored to original condition
- Used on a limited basis (not a daily driver)
- Stored in a secure garage or facility
Vehicles used for exhibitions, car shows, parades, or weekend cruises usually fall into this category.
Vintage military vehicles may also qualify for specialized classic car insurance due to their rarity and historical value.
Why It Matters
If you’re insuring a classic vehicle under a standard auto policy, you might be under-protected and overpaying. Without agreed value coverage, proper repair allowances, or spare parts protection, you could be left footing a large bill after a claim. Having the right insurance is essential for financial responsibility and helps protect your investment in your classic car.
Classic car insurance is built specifically for your vehicle’s unique needs—giving you peace of mind while preserving the car’s value and legacy.
Let’s Get Your Classic Covered
At the Meagher Agency, we understand how much your classic car means to you. Whether it’s a weekend cruiser or a fully restored showpiece, we’ll help you find coverage that fits like a glove.
📞 Call us today at 570-253-0466 to get a custom quote and learn more about your options.
🛡️ Protect your passion—with a policy as unique as your car.
