A classic car is usually considered a vehicle that’s at least 25 years old or is a collector’s item. If your ride fits either description, you know how important it is to protect it.
But traditional car insurance isn’t the right fit for a vintage auto. Classic car insurance relies on coverage amounts based on an agreed-upon value, rather than actual cash value. There are also strict limits on how much you can drive it and stringent requirements for proper storage.
CNBC Select lifted the hood on top insurance companies with policies for classic cars and picked the best in a variety of categories.
Check out our methodology for more on how we made our picks.
Best for immediate coverage: Grundy
Who’s this for? Grundy offers automatic coverage for new acquisitions, which can protect your special ride while you’re adding it to your policy.
Standout benefits: Grundy doesn’t set annual mileage caps for classic cars. And, if you have a breakdown, your policy also includes up to $600 in trip interruption coverage and $250 for roadside assistance.
Grundy Insurance
-
Policy highlights
Grundy insures vehicles over 25 years old, as well as muscle and exotic cars of any age. Policies include towing and trip interruption expenses.
-
Availability
Grundy issues policies in all 50 U.S. states
-
Annual mileage allowance
-
Coverage for spare parts
Pros
- Available nationwide
- Also offers classic boat coverage and homeowners policies
- Unlimited annual miles
Cons
- Requires locked garage storage
- Drivers must be at least 25 years old
- Doesn’t offer automatic value increases
Best for customization: American Modern
Standout benefits: Policies include $750 of pet injury coverage.
American Modern Collector Vehicle Insurance
-
Policy highlights
American Modern’s Collector Vehicle Insurance allows you to choose from full coverage (including comprehensive, liability and collision) or comprehensive only coverage. Options include coverage for trailers, roadside assistance and appreciation value.
-
Nationwide availability
Available in all 50 U.S. states and Washington, D.C.
-
Annual mileage allowance
1,000, 3,000, 6,000 or unlimited
-
Coverage for spare parts
Pros
- Also offers homeowners insurance for bundling
- Includes $750 of pet injury coverage
- Choice of annual mileage limits, including unlimited option
Cons
- Racing coverage not available
- Coverage requires vehicle to be stored in a locked garage or building
Best for regular driving: Safeco
Who’s this for? Safeco’s regular-use option allows you to clock up to 10,000 miles a year on your classic car.
Standout benefits: You can insure both your classic ride and your regular car with Safeco and enjoy a multi-policy discount and a diminishing deductible on both.
Safeco Classic Car Insurance
-
Policy highlights
The diminishing deductible can reduce your payout by up to $500 if you’re claim-free for five years. Safeco’s limited-use coverage is a good fit if you drive less than 5,000 miles per year.
-
Availability
Nationwide except in Alaska, Delaware, Hawaii and Washington, D.C.
-
Annual mileage allowance
5,000 (for limited-use rates), 10,000 (for regular-use rates)
-
Coverage for spare parts
Pros
- Can bundle with traditional auto insurance
- Diminishing deductible
- No membership fees
Cons
- Roadside assistance costs extra
- Not available nationwide
- Limited use rates capped at 5,000 miles per year
Best for availability: American Collectors
Who’s this for? Unlike many competitors, American Collectors Insurance insures collectors’ rides in all 50 U.S. states and Washington, D.C.
Standout benefits: American Collectors’ Freedom Tier allows up to 7,500 miles a year plus occasional general usage. It also reimburses up to $250 to relocate your car during a natural disaster.
American Collectors Insurance
-
Policy highlights
Affordable agreed-value insurance for collector cars, including the repair shop of your choice and basic towing services. Optional coverage available for expanded towing and transportation services.
-
Nationwide availability
Available in all 50 U.S. states and Washington, D.C.
-
Annual mileage allowance
7,500 miles (plus occasional general usage)
-
Coverage for spare parts
Pros
- Coverage includes $0 deductible glass coverage
- $250 for disaster relocation expenses
- Drivers can choose mechanic of their choice
Cons
- Only available in 20 states
- No coverage for racing or timed events
Best for restored vehicles: Hagerty
Who’s this for? If you provide proof that your vehicle is being restored, Hagerty will increase the agreed value by 10% each quarter, to a maximum of $25,000.
Standout benefit: Hagarty is flexible about using your vehicle for club functions, tours, exhibitions and pleasure driving. Some policies allow for use as a regular vehicle for several months a year. Plans also include $750 in coverage for automotive tools.
Hagerty Insurance
-
Policy highlights
Hagerty offers policies for collector vehicles, including cars, motorcycles and boats — including those that are being built or restored.
-
Nationwide availability
Hagerty operates in all 50 U.S. states and Washington, D.C.
-
Annual mileage allowance
-
Coverage for spare parts
Pros
- Available in all 50 U.S. states
- Flexible use of collector vehicles for exhibitions, tours and pleasure driving
- Access to useful valuation tools
Cons
- Requires separate HPDE and Track Day coverage for racing vehicles
- Drivers with serious infractions excluded
- No coverage for off-road or recreational vehicles
Best for high-value vehicles: Chubb
Standout benefits: Drivers don’t need authorization to participate in non-competitive rallies or tours.
Chubb Classic Car Insurance
-
Policy highlights
Top-tier service for restoring or repairing vehicles, including coverage for OEM or fabricated parts.
-
Nationwide availability
Chubb issues policies in all 50 U.S. states and Washington, D.C.
-
Annual mileage allowance
Unlimited (limited to hobby use)
-
Coverage for spare parts
Pros
- Also issues homeowners, umbrella and other personal insurance
- Covers new vehicle purchases for the first 90 days
- Offers coverage for trailers
Cons
- Limits vehicle coverage to hobby use
- May not be a fit for low-value cars
- Limits vehicles to those that are 30 years old or a limited production model
How much is classic car insurance?
Because they’re driven much less, classic cars are typically 40% to 50% cheaper to insure than standard daily-use vehicles. According to Car and Driver, a classic car insurance policy typically costs between $200 and $600 a year.
Your individual rates will depend on the value of your car, your driving record and other factors.
What makes a vehicle a collector car?
There is no set definition of a classic car, but according to the Insurance Information Institute, a vehicle worth more than its original selling price may qualify for classic car insurance.
This includes:
- Cars that are more than 25 years old
- Hot rods, muscle cars and modified vehicles
- Exotic and luxury cars
- Vintage military vehicles, antique tractors and classic trucks
- Classic motorcycles
- Some classic car replicas
What does classic car insurance cover?
Classic car insurance includes the same basic coverage as full coverage insurance, namely:
Liability coverage: Pays for injuries or property damage caused by your vehicle.
Collision coverage: Covers damages to your vehicle caused by a collision with another car or object.
Comprehensive coverage: Pays for repairs from damage to caused by a vehicle collision, like flooding, vandalism or hitting an animal.
The main difference is that classic car insurance policies usually pay out on an agreed value basis, rather than deducting depreciation. Some companies offer cherished salvage coverage, which allows you to keep the car and still receive its guaranteed value if it’s deemed a total loss.
Some insurers also cover:
- Tools and spare parts
- Vehicles being restored or constructed
- Memorabilia
- Roadside assistance
- Emergency relocation
- Auto show medical reimbursement if someone is injured at an exhibition
A classic car policy may cover the increased cost of experts and special towing needs. All the insurers we selected let you choose your repair shop, so you have a specialist you can trust. In addition, while standard auto insurance is limited to the U.S., a classic car policy may cover the vehicle abroad if you’re traveling for a car show or other event.
Classic car insurance typically won’t cover vehicles used for everyday purposes, though, like a daily commute. Most providers don’t offer liability-only policies, either, and exclude coverage for vehicles that are not street-legal or that are used on racetracks or in timed events.
What is agreed-value insurance?
Standard car insurance pays out based on the actual cash value of your vehicle, which accounts for depreciation.
Agreed value coverage, however, means that if your car is stolen or totaled in a covered event, you are paid the amount you and your insurer agreed to in advance. Most classic car insurance policies pay out on an agreed value basis.
When is a car considered a classic?
To be considered a classic car for insurance purposes, your vehicle should meet certain qualifications:
Age: Typically, the vehicle must be at least 25 years old.
Condition: It must be in good condition with proof of regular servicing
Mileage: This varies by insurer, but vehicles are typically not driven more than 7,500 miles a year
Storage: The car must be kept in a locked garage that protects it from both theft and the elements.
There are also guidelines for drivers looking for classic car insurance.
Age: The primary policyholder should be at least 25 years old
Driving record: A clean record for the last five years, with no at-fault accidents or serious violations.
Alternate vehicle: The car must not be your primary mode of transportation
How to save on classic car insurance
While classic car insurance is cheaper than a traditional policy, there are still ways to save more.
- Bundle your policies: Insuring your everyday vehicle and your classic car with the same company can earn you a discount with many providers. Companies like Chubb and Safeco also offer homeowners insurance and other types of coverage.
- Have a clean driving record: As with traditional car insurance, not having accidents or other violations will help keep your rates lower.
- Discounts: Some insurers offer rate reductions for car clubs and other associations.
- Lower-mileage rate: Some insurers will offer lower rates for those who drive their vehicles less.
- Raise your deductible: If your classic car insurance policy has a deductible, raising it can lower your premium. However, it does mean that you’ll owe more out of pocket if you are involved in an accident, so be sure it’s affordable.
Pros and cons of classic car insurance
Pros
- Is usually cheaper than traditional car insurance
- Covers hard-to-find tools and parts, expert repair and specialized towing
- You receive the agreed-upon replacement value rather than actual cash value if the vehicle is totaled or stolen
Cons
- Insurers may limit coverage based on a car’s age and condition
- Stricter limits on mileage and usage
- Drivers under 25 or with violations may not be eligible for coverage
- Continued coverage may require regular inspections
Classic car insurance mileage limits
Classic car insurance companies can be strict about how many miles you’re allowed to drive in a year.
| Company | Mileage allowance per year |
|---|---|
| Safeco | 5,000 miles (limited use), 10,000 (regular use) |
| American Collectors Insurance | 7,500 miles, plus occasional general usage |
| Hagerty | 7,500 miles |
| Grundy | Unlimited |
| Chubb | Unlimited for hobby use |
| American Modern | 1,000, 3,000, 6,000 or unlimited miles |
Classic car insurance FAQs
Is classic car insurance cheaper?
Since collectible vehicles are driven much less frequently, classic car insurance is as much as 40% to 50% cheaper than a standard policy. According to Car and Driver, a classic car insurance policy averages $200 to $600 per year.
What insurance is best for old cars?
When deciding on insurance for an antique car, you should consider a company’s rates, coverage options and years of experience. We’ve determined Hagerty, American Collectors, Grundy, Chubb and Safeco are among the best insurance companies for valuable older vehicles.
What are the limits on classic car insurance?
Many insurers cap on how many miles you can drive a classic car and where you can use it, usually to approved hobby activities and car shows. Additionally, owners may have to meet age and driving record requirements.
How many miles can you drive a classic car per year?
How much an insurance company lets you drive a classic car varies greatly. Many cap mileage at 7,500 miles annually, but some companies do not have set limits.
Can you insure a classic car that you use as a daily driver?
Typically, you can’t insure a classic car you intend to use as your regular vehicle or daily driver. Safeco’s regular-use option allows you to clock up to 10,000 miles a year.
Does Liberty Mutual have classic car insurance?
Insurance for classic or antique cars is offered by Liberty Mutual through its subsidiary Safeco, one of our top picks in the field.
What year vehicle needs classic car insurance?
Typically, automobiles that are at least 25 years old and owned solely as a collector’s item (not for everyday use) are good candidates for classic car insurance.
Subscribe to the CNBC Select Newsletter!
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every insurance list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. To research the best insurance companies, we compiled over 100 data points on more than a dozen insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine the best insurance for classic cars, CNBC Select analyzed numerous companies that offer this type of coverage and compared them based on rates, availability, features, usage limitations and customer service.
We incorporated data from J.D. Power, the National Association of Insurance Commissioners and the Better Business Bureau.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
From there, we sorted our recommendations by the best for availability, regular use, immediate coverage, restored vehicles and high-value vehicles.
Average premiums and policy structures for classic car insurance are subject to change.
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
link