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5 Best Classic Car Insurance Companies

There’s nothing quite like a classic car, the type of vehicle that draws curious crowds, sparks conversations and attracts double-takes wherever you go. A special car needs a special type of insurance policy, which is why classic car insurance has become a more popular way to insure classic cars and collector cars. Here’s how to choose the best classic car insurance.

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Tip: Compare 2-3 companies to get the best rate

Quick Look: Best Classic Car Insurance

  1. Hagerty
  2. American Collectors
  3. Grundy
  4. Safeco
  5. American Modern
Get a Classic Car Insurance Quote
Tip: Compare 2-3 companies to get the best rate

What is Classic Car Insurance?

Classic car insurance is similar to standard car insurance in many ways. Your policy can provide collision coverage, comprehensive coverage and liability coverage, just like a standard auto policy — but the difference is in how classic car insurance handles some of these coverages.

How it’s different than regular car insurance. There are several differences between classic car insurance and regular car insurance. One of the most important distinctions is the insured value of the car. A standard auto insurance policy decreases the insured value of the vehicle over time as the car depreciates, usually quite rapidly.

Classic cars and collector cars often go up in value over time or remain within a value range. With a standard auto insurance policy, this can create a large gap in coverage. The best classic car insurance is designed to address valuation in a way that provides better coverage by using an agreed value or guaranteed value to determine the coverage amount.

Another important coverage difference is that many classic car insurance policies provide coverages you won’t find with a standard auto policy, such as coverage for vehicles being restored and coverage for spare parts. Some providers even have a concierge service that can help you locate difficult-to-find parts if your vehicle needs repair after a claim.

While requirements can vary, classic car insurance may require that both you, the driver, and your vehicle qualify for special coverage. Here are some of the requirements or restrictions you may encounter:

  • 5 years of driving experience
  • Good driving record
  • Vehicle must be a certain age or have collector status
  • Racing prohibited
  • Locked and enclosed storage area
  • Mileage or usage restrictions

What Classic Car Insurance Covers

Insurance for classic cars closely parallels standard auto coverage in a few broad areas.

Liability coverage. In most states, this is the type of coverage required by law. Your liability coverage includes both bodily injury liability, which pays for costs associated with injuries to others and property damage liability, which pays for damage to things, like other cars, lampposts, the hot dog stand at the car show or other things you might bump into with your car. Accidents happen.

Collision coverage. This helps cover the cost of repairing your classic car if you’re involved in an accident. A collision is defined as an impact with another vehicle or stationary object, but rollovers are also covered by collision coverage.

Comprehensive coverage. Fire, theft, vandalism, floods, broken glass, falling objects and more can be covered with comprehensive coverage on your classic car policy. In the event of a covered claim, damage to your vehicle is covered using an insured value that isn’t adjusted for depreciation.

Medical coverage for your own injuries may be included as well, but insurance rules for medical coverage can vary greatly from state to state.

You can usually expect some extra coverage as well, which may include:

  • Roadside assistance
  • Travel expense coverage (if your classic car breaks down)
  • Spare parts coverage
  • Auto show-related coverages

What to Look for in a Company

Some broad-market insurers also offer classic car insurance but in most cases, a specialty insurer provides the best coverage. Like most types of insurance, classic car insurance has nuanced coverage that can make one policy a better fit than another. Review the coverage details carefully with your agent.

Agreed value or guaranteed value coverage. Classic cars and collector cars can increase in value over time. Agreed value coverage covers your car for a fixed amount without making deductions for depreciation. Ask questions about this part of your coverage. Some policies are structured as “stated value” coverage, which sounds similar, but may leave you with less complete coverage.

Restoration coverage. This type of coverage is indispensable if you have a project car that you’re bringing back to its original beauty. Restoration cars that aren’t yet complete can’t be insured with a standard auto policy and vehicles are usually excluded from coverage on home insurance and business property insurance policies.

Flexible usage. Some classic cars are seldom used and others are used more often. Check policy restrictions to be certain the policy allowances match the way you’d like to use your vehicle.

Parts coverage. There’s a good chance that your garage or workshop has an inventory of valuable spare parts if you’re a classic car enthusiast. If that’s the case, don’t count on your home insurance to provide coverage. Look for a classic car insurance policy with coverage for spare parts.

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Tip: Compare 2-3 companies to get the best rate

Our Top Picks

If you decide classic car insurance is right for you, make sure you pick the best company.

1. Hagerty

Hagerty is as much a community as it is a classic car insurer and even has a members-only drivers club with events, discounts, roadside service, a parts-sourcing service and yes — a subscription to “Hagerty” magazine that features classics you’ll appreciate.

It isn’t unusual for classic car owners to have multiple vehicles and Hagerty offers coverage for a wide range of auto enthusiasts, including weekend racers, hot rodders and more. Coverage for classic cars is offered as a guaranteed value so there won’t be any costly surprises if the unexpected happens. Rates are affordable and your coverage can be customized to the way you use your vehicle.

If you already have a policy with Hagerty, any new classics that may find their way into your garage are automatically covered for up to $50,000. Coverage is also available for spare parts, which protects your inventory against fire and similar risks.

2. American Collectors

With decades of experience in protecting collectibles of all types, American Collectors has become a well-respected provider for classic car insurance. Coverage is offered as agreed value, so you won’t take a depreciation hit if you have a claim. You’ll also have the option to choose a mileage plan to match the way you use your vehicle.

American Collectors’ Freedom Tier plan offers one of the most generous mileage allowances among classic car insurers with up to 7,500 annual miles.

Another attractive feature of the American Collectors policy is its inflation guard, which increases the coverage for your classic by up to 6% — because parts go up in price as does labor. American Collector has inflation covered. A multi-vehicle discount is available for classic car owners who have more than one classic vehicle and qualifying vehicles are automatically covered for 30 days if you encounter a barn find one sunny weekend.

Spare parts are covered for comprehensive claims —  and yes, American Collectors can cover vehicles that are being restored.

3. Grundy

Grundy Insurance is a multi-line insurer with deep roots in classic car insurance. James Grundy is credited with inventing agreed value coverage in 1947, a coverage method now used widely in classic car insurance because it combines affordability with full-value coverage.

Grundy’s coverage is designed for those with good driving records and those who don’t use their vehicle as a daily driver. Agreed value coverage is available for most vehicles 25 years or older and modern muscle cars or exotics, which also have special coverage considerations.

Choosing a coverage amount is a breeze. Just tell Grundy how much you think the car is worth. If Grundy’s expert underwriters agree, you have an agreed value and your car is covered up to that amount.

While Grundy does require that your classic not be used as a daily driver, the company does not impose a mileage restriction. Coverage limits of up to $1 million are available and several extras are included, like inflation guard, spare parts coverage, trip interruption coverage, towing and labor and automatic coverage for newly acquired vehicles.

4. Safeco

Safeco’s history spans nearly 100 years. Now part of Liberty Mutual, Safeco combines the strength of a leading insurer with the personalized care you’ll find with Safeco’s network of independent agents.

Coverage for classic cars is offered as agreed value for collision and comprehensive and a number of policy options are available to customize your policy, including diminishing deductible, which can reduce your deductible by $100, up to $500 total, for each year you’re claim-free.

Generous mileage allowances are available for those who drive their classic car more frequently, including a regular use option that allows up to 10,000 miles per year. Occasional drivers can save with a limited use option that permits up to 5,000 per year. With Safeco, you even have the option of combining regular use cars with classic cars on the same policy.

5. American Modern

With 5 decades of experience protecting families and businesses, American Modern is another solid choice for insuring your classic car.

Boasting one of the most inclusive policies in the business, American Modern offers a home to even some of the more exotic vehicle types, like fire engines, street rods, kit cars and much more.

Coverage with American Modern is offered as agreed value, with a broad range of mileage plans ranging from 1,000 miles per year up to unlimited mileage. Spare parts coverage is generous as well, with a limit of $2,000 included with your policy. American Modern also provides limited towing coverage, trip interruption coverage and even limited medical coverage for pets injured in an accident.

Choose the Best

Car enthusiasts know there’s a proper tool for every job, and for a classic car or collector car, only a dedicated classic car insurance policy can protect your vehicle without leaving massive coverage gaps. While some broad-market insurers offer classic car coverage, often a policy from one of the providers in our list or a similar specialty insurer actually provides the coverage.

Take your time when choosing the best classic car insurance and ask your agent if you aren’t completely sure how the coverage works. Also, ask about your liability coverage options. Often, raising liability coverage limits is among the most affordable changes you can make to your policy and this coverage protects you against what is frequently the largest financial risk: bodily injury to others in an accident.

If you’re interested in learning more about how to get the best insurance coverage, check out Benzinga’s guides on the best car insurance, best cheap car insurance and no-fault car insurance.

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Tip: Compare 2-3 companies to get the best rate

Frequently Asked Questions

1) Q: By law, what types of car insurance do I have to have?

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1) Q: By law, what types of car insurance do I have to have?
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(almost all — not NH) All states require you to carry liability insurance on your vehicle. Your state may require additional auto insurance coverage. Limits are expressed: Amount for injuries per person/amount for injuries total per accident/amount for property damage per accident.

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2) Q: Should I have just the minimum amount of car insurance required by my state?

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2) Q: Should I have just the minimum amount of car insurance required by my state?
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It’s a good idea to purchase more than the state minimum of any type of insurance. State minimums are set relatively low to keep insurance affordable, but in the case of an accident, you can deplete your minimums quickly with expensive medical and property damage costs. Once your bills extend past the minimums, you’ll personally be liable for additional costs and damage. Get the coverage that makes sense for you here.

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3) Q: How does my personal credit play a role?

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3) Q: How does my personal credit play a role?
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Insurance carriers run credit scores to help determine policy premiums. Your insurance rates will likely be lower if you have an excellent credit score. On the other hand, your insurance rates may be higher if you have a poor credit score. Insurance companies believe credit scores are an indicator of whether you’ll make your insurance payments on time and credit scores combined with other data can be predictive of risk. Check out the best companies for all credit scores now.

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