Classic Car Insurance: Everything You Need to Know

Every car that you see on the road, from the family sedan to the flashy convertible or the large truck, they are insured against one or a few policies. No matter what type of vehicle it is, to be driven legally on the roads, it needs to be insured. Liability insurance or third-party insurance is a way to protect other people and their vehicles and property in an accident. But did you know that those classic cars that you see sometimes in shows, exhibitions, or just zooming past the hills are also insured? 

Since these are “special” types of vehicles, they require a special type of auto insurance that provides coverage according to their usage, and value. The first major difference between classic cars and normal day-to-day commuters is instead of the value depreciating, the value of classic cars rises higher. So the older the car gets, the more the insurance company will have to pay for the coverage. 

This was one of the many differences and we’ll see later how these differences add up in the coverage. First, let’s look at what classic car insurance is and what it covers. 

All you Need to Know About Classic Car Insurance 

Most of the insurance companies offer all the coverage for classic cars, albeit with a little bit of tweaking in the terms and conditions. There is four major and most common auto insurance which come in classic car insurance. 

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Liability Insurance: Liability insurance is the absolute mandatory vehicle insurance you need to have to legally drive any car in the US. Liability insurance is not for your vehicle, so it does not matter if you have a classic car, a truck, or a normal Honda, if you want to drive any vehicle legally on the roads, you need to have liability insurance coverage. 

The liability insurance coverage covers the cost of repairs and medical bills of the other person/car/property in case there’s an accident and it is your fault. Liability insurance costs a lot but there are many great companies, including some of the cheapest insurance companies that offer great prices and excellent coverage. 

Collision Insurance coverage: Collision insurance coverage provides coverage for all the damages to your car in an accident that is your fault. It is sort of like liability insurance coverage but for your car. However, it does not cover bodily injury and it costs as much as liability insurance. 

Comprehensive coverage: This coverage is one of the most important coverages for classic cars. Comprehensive insurance provides coverage for most accidents that are not your fault. It includes: 

  • Natural calamities such as earthquakes, hurricanes, etc
  • Fire
  • Theft
  • Vandalism
  • Windshield
  • Falling objects, projectile
  • Collision damage (when the car is parked)
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As you can guess from the coverage, it is very important to have comprehensive coverage for your classic car as the entire idea of having a classic car is to keep it intact for as long as possible. While for other commercial commuting vehicles, as they get older, the need for protecting them from such accidents starts fading away, the opposite is true for classic cars.

Special Classic Car Insurance Options

Along with the above-mentioned three auto insurance coverage, there are some special coverage plans made for classic cars. While these policies might differ slightly from company to company, the overall coverage is very similar.

Salvage Coverage: Classic cars are unlike normal cars. In the case of an accident that totals a commuting vehicle, the car (or what’s remaining of it) is usually not taken by the policyholder. But in the case of classic cars, even the totaled car is valuable. It can be salvaged and repaired. Hence, salvage coverage allows policyholders to keep the vehicle after an accident. 

Roadside assistance: Roadside assistance is generally taken as an add-on with other insurance policies, and it can be skipped for normal cars which do around 40-60 miles a day maximum, roadside assistance is very important for classic cars, even if they are driven occasionally for short distances. 

While normal cars can be towed and taken to any nearby mechanic shop, classic cars need special care and assistance. There might not be any shop nearby that could fix these classic cars. So if you are out for a drive in your cherished Chevy or Mustang and get a flat tire, run out of gas, or have any issue in the middle of the road, roadside assistance would be a lifesaver.

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Companies that Offer Classic Car Insurance 

Here’s a list of car insurance companies that offer classic car insurance coverage:

  • Geico 
  • Allstate
  • Erie
  • Progressive
  • Hartford
  • Hagerty
  • USAA
  • State Farm
  • Liberty Mutual 
  • Grundy
  • Chubb
  • American Modern
  • American Family

What Cars are Covered? 

Who decides which car should be considered a classic car and which one will be just an “old” car? Each auto insurance company has its parameters that separate the classic cars from the old ones. Usually, these cars come under the category of classic cars:

  • Old race cars
  • Cars with history
  • Exotics 
  • Collector vehicles
  • Classic tractors
  • Classic trucks
  • Muscle cars
  • Replicas
  • Exhibition cars

The rule of thumb when deciding if the car is classic or not is to see its make. If the car was manufactured between the 1950s and 1980s, it is considered a classic car. If the cars were made between 1915-20s to 1950s, then the cars are considered antique. Some auto insurance companies might have different coverage plans and rates for antique cars, so it is better to get all the details before buying any auto insurance policies. Keep your classic cars safe. Get it insured.

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