What is classic car insurance?

How does classic car insurance work?

Classic car insurance works similarly to a regular auto policy, with the benefit of having coverage for your vehicle's agreed value and its specifications such as usage, storage, and more. Like with auto policies, you'll provide information about you and the classic vehicle you want to protect, and you'll select the coverages that match your usage and budget. Many types of collector vehicles are eligible for classic car insurance, including classic trucks and military vehicles (like vintage Army Jeeps).

Classic car insurance covers you for property damage and bodily injury when you take your classic car to auto shows, tours, and collector vehicle functions, and for occasional pleasure driving.^* If your vehicle gets damaged in a covered incident, your classic car insurer will pay for the repairs or losses up to the policy's limits. Deductible-free options are available on most policies.

Classic car insurance requirements

To qualify for classic car insurance, you'll have to meet the insurer's requirements, which may or may not factor in the car's age. Hagerty doesn't have rules about how old a classic car has to be, but it does require the following of the vehicles it insures:

• Usage: A classic vehicle can't be the car you use daily
• Storage: It's preferred that your classic car be stored in a private garage, pole barn, or storage unit, but there may be considerations for carports, driveways, parking garages, and car hauling trailers^†
• Driver eligibility: In most states, only drivers who don't have serious infractions (alcohol-related offenses, reckless driving, excessive speed violations) from the last three years can obtain coverage^**
• Regular use vehicles: All drivers in your household must have a regular-use vehicle for daily driving, and the classic car insurance applicant must have and keep a regular auto policy

Do I need insurance on my classic car?

In short, yes. Auto insurance is mandated in all states except New Hampshire (New Hampshire still requires financial responsibility), so you'll need a minimum of liability coverage if you plan on taking your classic or collector car on the road. Driving without insurance can result in a fine or license suspension, so make sure you're covered even if you only take your classic for the occasional spin around the block. Moreover, it makes sense to safeguard all you've invested into your prized vehicle.

Classic car insurance vs. regular car insurance

Classic car insurance differs from regular auto insurance in a few key ways:

• Insured value: With regular auto insurance, your vehicle is covered for theft and physical damage up to its actual cash value, which factors in depreciation. But classic cars can appreciate in value, especially when restored or customized. That's why classic car insurance primarily insures collector cars for their agreed value — the value you and your insurer agree that the car is worth (with supporting documentation).
• Usage & vehicle type: Standard auto insurance is meant for cars that are driven on a regular basis, such as to and from school or work. Classic car insurance is meant for older, collectible vehicles that are only driven on occasion (such as to and from car shows, or weekend drives).
• Storage requirements: Many classic car insurers require their customers to store their classic in a safe place, ideally a garage or barn, so it's protected from the elements.
• Original parts coverage: Classic car insurance may also pay for original parts to repair your classic if it's damaged in a covered incident. With regular auto insurance, your car may be repaired with non-original, aftermarket parts.

What isn't covered under classic car insurance?

Classic car insurance is designed for secondary vehicles; it's not meant to cover a car you drive for everyday use. If your classic or collector car is your primary ride, you'll need to cover it with a standard auto insurance policy.

How is classic car insurance priced?

Your rate for classic car insurance will depend on a set of factors and vary by insurer. With Progressive Classic Car by Hagerty, a few of the most significant variables that will affect your premium include:

• Your vehicle’s value: The age, model, and condition of your car will greatly influence how much you pay to insure it. Learn how to determine what your classic car is worth.
• Location/storage of the vehicle: The state you live in will always affect insurance pricing, as will where you store the vehicle. Safeguarding your classic car in a locked garage or storage facility is favorable to your insurer, and likely to the price of your classic car insurance.
• How you drive the vehicle: Classic car insurance isn't designed for everyday-use vehicles, and usage will affect pricing. However, Hagerty can provide coverage for a range of mileage options.

Discounts may also be available for classic car insurance. Depending on the insurer, you might qualify for one if you have multiple policies with the same company, insure more than one classic car, don't have any accidents or claims on your record from the past three years, complete a defensive driver class, install an anti-theft device in your car, or have comprehensive coverage.