Classic Car Insurance and How it Works

Classic car insurance is a specialized type of insurance coverage designed to protect vintage, antique, or collector cars. Moreso, these vehicles often hold significant value beyond their functional use and may require unique considerations when it comes to insurance coverage.

Classic Car Insurance

Further, there are certain things that this type of insurance coverage covers, and with the information that this post offers you will get a full understanding.

What is Classic Car Insurance?

In simple terms, classic car insurance is a specialized type of insurance coverage designed to protect vintage, antique, and collectible automobiles. However, unlike standard auto insurance, which is primarily based on the market value and depreciation of a vehicle, classic car insurance takes into consideration the unique characteristics of older and rarer vehicles.

How Does Classic Car Insurance Work

Classic car insurance works similarly to regular auto insurance but is tailored to the unique needs and characteristics of vintage and collectible vehicles. Well, here’s how it generally works.

Agreed Value Determination

When you apply for classic car insurance, you and the insurance company will agree upon an “agreed value” for your vehicle. This value is based on factors such as the car’s rarity, condition, historical significance, and market value. Unlike standard auto insurance, which typically reimburses you for the actual cash value of your car (market value minus depreciation), classic car insurance will pay out the agreed value in the event of a covered total loss.

Premium Calculation

The premium you pay for classic car insurance is based on several factors, including the agreed value of the vehicle, your driving record, the usage restrictions such as mileage limits, the vehicle’s storage arrangements, and any additional coverages you choose to add such as roadside assistance or coverage for spare parts.

Usage Restrictions

Classic car insurance often comes with usage restrictions. These restrictions are in place because classic cars are typically driven less frequently and are often used for exhibitions, shows, parades, and pleasure drives rather than everyday commuting. The policy may specify annual mileage limits or restrict usage to certain events or purposes.

Maintenance and Storage

Insurance companies may require that your classic car is well-maintained and properly stored in a secure and climate-controlled environment to protect its value. You might need to provide documentation of regular maintenance and proof of secure storage to maintain coverage.

Claims Process

If your classic car is damaged or stolen, you’ll need to file a claim with your insurance company. Depending on the circumstances, the insurance company will either repair the vehicle or provide compensation based on the agreed value, minus any deductible you’ve chosen. Make sure to document the damage and provide any necessary evidence to support your claim.

Specialized Coverage

Classic car insurance can also offer specialized coverages such as spare parts coverage, travel, and accommodation expenses if your car breaks down during an event, and coverage for modifications or customizations you’ve made to the vehicle.

Membership and Affiliations

Some classic car insurance providers may require you to be a recognized car club or organization member to qualify for coverage. These memberships can often provide you with additional benefits and resources related to classic car ownership.

Comparing Policies

Just like with regular auto insurance, it’s important to shop around and compare policies from different insurance providers to find the one that best fits your needs and budget. Be sure to review the terms, coverage limits, deductibles, and any additional benefits offered by each policy.

Well, these are some of the ways in which classic car insurance really works.

What Does Classic Car Insurance Cover

Classic car insurance covers a range of risks and potential expenses related to owning and maintaining vintage, antique, and collectible automobiles. The coverage provided by classic car insurance policies can vary from one insurer to another, but here are some common elements that are typically covered:

Agreed Value Coverage

Classic car insurance policies offer “agreed value” or “stated value” coverage, which means that you and the insurance company agree upon a specific value for the vehicle at the time the policy is written. In the event of a covered total loss, you will be compensated for the agreed value, regardless of market fluctuations.

Physical Damage Coverage

This covers the cost of repairing or replacing your classic car if it’s damaged in an accident, by fire, vandalism, or other covered perils. The coverage typically includes collision coverage and comprehensive coverage.

Liability Coverage

Like standard auto insurance, classic car insurance also provides liability coverage, which pays for bodily injury and property damage you may cause to others in an accident. This coverage is essential for legal and financial protection if you’re found at fault.

Uninsured/Underinsured Motorist Coverage

This coverage protects you if you’re involved in an accident with a driver who doesn’t have insurance or has insufficient coverage to pay for your damages.

Medical Payments or Personal Injury Protection (PIP)

These coverages can help pay for medical expenses for you and your passengers in case of an accident, regardless of who is at fault.

Spare Parts Coverage

Some classic car insurance policies offer coverage for spare parts and accessories that are stolen, damaged, or lost. This can help you replace valuable components of your classic car.

Coverage for Modifications

If you’ve made modifications or customizations to your classic car, some policies may offer coverage for these enhancements, but you usually need to declare and document them.

Roadside Assistance

Many classic car insurance policies include roadside assistance coverage, providing help if your classic car breaks down on the road or needs a tow.

Towing and Labor Coverage

This covers the cost of towing your classic car to a repair shop and the labor costs associated with the breakdown.

Event and Show Coverage

Some policies offer coverage for damage that occurs during events, exhibitions, or parades where your classic car is being displayed or driven.

Travel and Accommodation Expenses

In the event your classic car breaks down while you’re traveling to an event, some policies may cover travel and accommodation expenses incurred as a result.

Meanwhile, it’s important to carefully review the terms and conditions of different classic car insurance policies to understand exactly what is covered and what may be excluded.

How To Get Classic Car Insurance

Getting classic car insurance involves several steps to ensure that you obtain the right coverage for your vintage or collectible vehicle. Here’s a general guide on how to get classic car insurance.

Determine Eligibility

Verify that your vehicle meets the eligibility criteria for classic car insurance. Requirements may include the vehicle’s age (usually 20-25 years or older), its condition, historical significance, and how you plan to use it (limited usage, exhibitions, shows, etc.).

Research Insurance Providers

Look for insurance companies that specialize in classic car insurance. These companies have experience with the unique needs of classic car owners and offer tailored coverage options.

Gather Vehicle Information

Collect all relevant information about your classic car, including its make, model, year, VIN (Vehicle Identification Number), current condition, and any modifications or customizations you’ve made.

Document Value

Determine the agreed value or stated value of your vehicle. This can involve research, appraisals, and discussions with the insurance provider to establish an appropriate value for your classic car.

Compare Quotes

Contact multiple insurance providers that offer classic car insurance and request quotes. Compare the quotes, coverage options, deductibles, and any additional benefits provided by each policy.

Provide Information

When you’ve chosen an insurance provider and policy, you’ll need to provide detailed information about yourself, your driving history, and your classic car. This information helps the insurance company assess risk and determine your premium.

Submit Documentation

You may need to submit documentation to support your application, such as photos of the vehicle, maintenance records, proof of secure storage, and any appraisals or valuations you’ve obtained.

Select Coverage Options

Work with the insurance provider to customize your coverage based on your needs. Decide on coverage limits, deductibles, and any additional coverage options like spare parts coverage or roadside assistance.

Complete Application

Fill out the application form provided by the insurance company. Review the information for accuracy before submitting it.

Underwriting Process

The insurance company will review your application and may conduct further assessments, such as verifying your driving record and inspecting your classic car.

Receive Policy

Once your application is approved, you’ll receive your classic car insurance policy. Carefully review the policy document to ensure that it accurately reflects the coverage and terms you agreed upon.


Pay the premium for your classic car insurance. Premiums can be paid annually, semi-annually, or in installments, depending on the insurer’s policies.

Maintain Documentation

Keep copies of your insurance policy, vehicle documentation, maintenance records, and any correspondence with the insurance company in a safe place.

Review and Update

Periodically review your classic car insurance coverage to ensure it still meets your needs. Update the insurance company about any changes in the vehicle’s value, usage, or modifications.

10 Best Classic Insurance Companies

There are actually several classic car insurance companies and below are stated the 10 best for you to consider.


Hagerty is one of the most well-known and established names in the classic car insurance industry. They offer specialized coverage for classic and collector cars, along with a range of additional benefits and resources for classic car owners.


Grundy Insurance is another respected provider of classic car insurance. They offer agreed-value coverage, no mileage limitations, and options for coverage during events and exhibitions.

American Collectors Insurance

American Collectors Insurance specializes in insuring collector cars, classic cars, and vintage vehicles. They offer customizable coverage options and are known for their customer service.

J.C. Taylor

J.C. Taylor is a long-standing provider of classic car insurance with a focus on personalized coverage and excellent customer support.

Condon Skelly

Condon Skelly offers specialized insurance coverage for classic cars, collector vehicles, and exotic cars. They have a reputation for competitive rates and tailored coverage options.

Classic Auto Insurance

Classic Auto Insurance provides coverage for a wide range of classic and collector vehicles. They offer agreed-value coverage, flexible usage options, and additional coverage features.

Heacock Classic

Heacock Classic offers coverage for classic cars, antique cars, and collector vehicles. They emphasize personalized service and offer various coverage options.

Infinity Insurance

Infinity offers classic car insurance through their Infinity Collector Car program, providing coverage for vintage and classic vehicles.

Safeco Insurance

Safeco offers classic car insurance as part of its specialty auto insurance offerings. They may provide coverage for classic cars, modified cars, and custom vehicles.

Chubb Collector Car Insurance

Chubb is known for its high-end insurance products and offers specialized coverage for high-value collector cars.

Frequently Asked Questions

Below are frequently asked questions about Classic Car Insurance for better understanding.

What classic car insurance is best for an old car?

Below are some of the best car insurances for an old car.

  • Grundy insurance.
  • Hagerty insurance.
  • American collectors insurance.
  • American modern insurance.

What is classic car insurance?

Classic car insurance covers your valuable vehicle with liability, comprehensive, collision, and other specialist coverages.

At what age is a classic car UK?

The vehicle is now subject to Historic (classic) MOT and vehicle tax. Please keep in mind that there are some restrictions, such as if your car is used for commercial purposes. Also, HMRC considers a car to be a classic if it is more than 15 years old, has a market value of more than the list price, and is worth at least £15,000.

How old does a car have to be for classic car insurance?

If your vintage car is more than 25 years old and you already have a private car insured, you are eligible for vintage Car Insurance.

What type of car policy is best?

Comprehensive car insurance. Moreso, this sort of automobile insurance gives the most protection because it covers third-party liability, damage to one’s own car, personal accident coverage, and all non-collision damage such as storms, floods, fire, and theft.

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