7 Tips for Insuring a Classic Car

Owning a classic car is like holding a piece of history in your hands. Whether it’s a meticulously restored vintage Mustang or a cherished family heirloom, these vehicles deserve protection that matches their unique value. Insuring a classic car requires a different approach than standard auto insurance, but with the right knowledge, you can ensure your prized possession is safeguarded. Here are seven tips to help you navigate the process with confidence.

1. Understand What Makes Classic Car Insurance Different

Classic car insurance is tailored to vehicles that are typically older, rare, or collectible. Unlike standard policies, which base coverage on a car’s depreciated value, classic car insurance often uses an “agreed value” approach. This means you and your insurer settle on a specific value for your car upfront, ensuring you’re covered for its full worth in case of a total loss. Before purchasing a policy, confirm that your car qualifies—most insurers require the vehicle to be a certain age, in good condition, or used primarily for exhibitions, shows, or limited recreational driving.

2. Choose an Insurer Specializing in Classic Cars

Not all insurance companies understand the nuances of classic cars. Seek out providers with expertise in this niche, as they offer policies designed for low-mileage use, restoration projects, or vehicles stored for long periods. Companies like Hagerty or Grundy are well-known for their classic car programs, providing flexible coverage options and knowledgeable claims teams. Researching insurers with a strong reputation in this space ensures your policy aligns with your car’s unique needs.

3. Document Your Car’s Value and Condition

To secure the right coverage, you’ll need to prove your car’s value. Gather documentation like recent appraisals, receipts for restoration work, or photos showcasing its condition. A professional appraisal can be particularly helpful, as it provides an objective estimate of your car’s market value. Keep records of any upgrades or rare features, as these can impact the agreed value. Clear documentation helps avoid disputes during a claim and ensures your policy reflects your car’s true worth.

4. Consider Agreed Value Coverage

Agreed value coverage is a cornerstone of classic car insurance. Unlike standard policies that pay out based on “actual cash value” (which factors in depreciation), agreed value locks in a set amount for your car. Work with your insurer to establish a fair value, and revisit it periodically, as classic car values can appreciate over time. This type of coverage provides peace of mind, knowing you’ll be compensated appropriately if the worst happens.

5. Be Clear About Usage and Storage

Classic cars aren’t daily drivers, and insurers often require proof of limited use. Be upfront about how you use your car—whether for car shows, parades, or occasional joyrides. Many policies restrict mileage (often 1,000–5,000 miles per year) and may require a separate daily-use vehicle. Additionally, inform your insurer about your storage setup. A secure, climate-controlled garage can lower premiums, as it reduces risks like theft or weather damage. Honesty about usage and storage ensures your policy remains valid.

6. Explore Additional Coverage Options

Classic car policies often include specialized options to address unique risks. For example, roadside assistance tailored for classic cars ensures flatbed towing to avoid damage to delicate components. Spare parts coverage can protect valuable replacement parts, while restoration coverage safeguards your investment during a rebuild. If you travel to car shows, consider coverage for transit or event-related risks. Discuss these options with your insurer to customize your policy for your specific needs.

7. Review and Update Your Policy Regularly

The value of classic cars can fluctuate based on market trends, restoration efforts, or rarity. Review your policy annually to ensure the agreed value still reflects your car’s worth. If you’ve invested in upgrades or the market for your model has surged, inform your insurer to adjust your coverage. Regular reviews also let you reassess mileage limits or storage conditions, keeping your policy aligned with how you use and maintain your car.

Insuring a classic car doesn’t have to be daunting. By understanding your vehicle’s unique needs, choosing the right insurer, and staying proactive with documentation and policy reviews, you can protect your automotive treasure with confidence. Take the time to explore your options, and you’ll enjoy the open road knowing your classic car is as secure as it is timeless.