Classic Car Insurance: What Is It & How Does It Work

Classic Cars Insurance

Whether you’re driving down the road in serious ’70s power or cruising around town in a gorgeous Model A, your classic car is a piece of beauty.

For this reason, getting classic car insurance is a must before letting it leave the garage. Every owner of a vintage car should get collector car insurance to protect themselves from financial ruin in the event of an accident.

So, let’s find out what insurance for antique cars is and who qualifies for it.

What Is Classic Car Insurance?

Insurance for collectible cars is known as classic, antique, or vintage car insurance. It protects you financially in the event of damage to your classic automobile and often has more affordable prices than standard auto insurance.

Depending on who you ask about what qualifies as a classic car, you can get different answers. As you would expect, there is no universally accepted definition of a “classic” car, and definitions vary widely amongst insurance companies, local motor vehicle bureaus, and car clubs. They do, however, agree on a few points.

Classic Cars Are Old

Despite the common practice of categorizing vehicles by the year they were made, the age at which this occurs is not universally agreed upon by insurance companies, governments, or car clubs. Some individuals also use the terms classic, antique, and vintage interchangeably, although others do not.

To qualify for classic car insurance, your vehicle has to be at least 25 years old. Typically, an automobile qualifies as an antique if it is at least 45 years old. Additionally, the oldest cars are considered vintage; in this context, “vintage” refers to vehicles produced before the Great Depression.

Most classic, antique, or vintage automobiles qualify for historical vehicle registration with the Department of Motor Vehicles (DMV) in most states. You may then apply for specialty license plates and perhaps pay less for registration. However, make sure your car complies with the laws in your state.

Classic Cars Have Unique Functions

These cars aren’t intended to be used every day because they are leisure vehicles. They are usually used while taking a loved one on a nostalgic trip or taking grandchildren to the ice cream parlor.

Some vintage car owners even take their rides to activities that modern automobiles can’t join, such as parades, expos, and tours.

Classic Cars Are Quite Precious

In contrast to modern automobiles, classics maintain or even rise in value over time. In 1969, you could buy a brand-new Dodge Charger Daytona for less than $5,000. This identical automobile, albeit in horrible condition, is now worth close to $100,000.

Some automobiles are also more desirable if they were created in small quantities or by a business that has subsequently gone bankrupt.

Simply said, the most expensive historic automobiles are the rarest ones, and they are also the ones that need classic car insurance.

Can You Get Classic Car Insurance for Your Vehicle?

Your collector vehicle must also fulfill certain conditions in addition to being ancient, precious, and for unique usage to qualify for classic car insurance.

You can only get vintage or antique automobile insurance if you plan to drive your car occasionally, for example, to car exhibits or parades.

Also, some insurance companies won’t cover your antique automobile until you’ve restored it to mint condition, while others won’t care as long as it runs well and isn’t a safety hazard.

When it comes to classic car insurance, some companies have a strict policy that the vehicle be stored in a secure location such as a garage, shed, or storage unit at all times.

How Antique Auto Coverage Works

A classic car’s value much exceeds that of a modern vehicle, and because of the scarcity of antique auto components, restoring or repairing one is a far more expensive proposition. Instead of providing you with generic coverage, your insurance provider will pay you the agreed-upon value of your car (minus the deductible) in the event of an accident.

Aside from the standard comprehensive collision and extensive liability protections, additional coverages include the following:

  • Travel insurance. Covers costs in the event of a breakdown while traveling.
  • Auto show medical reimbursement. Compensates if someone is injured in or near your automobile at a show.
  • No-show coverage. Covers expenditures at auto events even if you are not in your vehicle at the time of the occurrence.
  • Spare parts coverage. Aids with the payment of replacement components, which might be expensive or difficult to locate on your own.

Final Thoughts 

The better your knowledge of classic cars, the easier it will be to find a company that provides appropriate policies. Keep your eyes on insurance companies that have been insuring classic cars for years, and look into the policies they offer. This way you can obtain the right insurance policy for your classic vehicle.