Insurance for a classic car diverges significantly from standard auto insurance. Unlike your everyday vehicle, insuring a classic car—typically defined as being at least 25 years old or a rare collector’s item—usually hinges on an agreed value rather than an actual cash value that depreciates over time.
Moreover, classic car insurance policies often come with stipulations regarding how much you can drive your prized possession and the necessity for secure storage.
For owners of classic vehicles, securing a policy that adequately safeguards their investment is paramount. We have curated a list of the best insurance companies specializing in these unique vehicles, ensuring your classic car receives the tailored protection it deserves.
The Best Classic Car Insurance Options
Navigating the world of classic car insurance can be complex, but choosing the right provider is essential for peace of mind. Here’s a breakdown of the top companies in the market, each offering unique benefits tailored to different needs:
Best for Fast, Immediate Coverage: Grundy Insurance
Grundy Insurance
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Cost
To get an accurate estimate of costs, requesting a personalized quote is the best approach.
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Policy Highlights
Grundy specializes in classic car insurance for vehicles older than 25 years, extending coverage to muscle and exotic cars of any age. They stand out by not imposing annual mileage restrictions and offering financial relief for unexpected situations like towing and trip interruptions. Terms and conditions apply.
Alt text: Secure garage storage for a vintage car, a common requirement for classic car insurance policies.
Pros
- Extends commercial insurance options to restoration shops, museums, and classic car dealerships.
- Offers a broad spectrum of personal insurance products, including classic boat coverage, personal umbrella policies, and homeowners insurance.
- Provides unlimited annual mileage, giving you freedom to enjoy your classic car.
Cons
- Mandates locked garage storage for insured vehicles.
- Requires all drivers to be at least 25 years old.
- Does not provide automatic value increases to keep pace with appreciating classic car values.
Who’s This For? Grundy is ideal for owners seeking immediate coverage. They offer automatic coverage for newly acquired vehicles, ensuring your classic car is protected from the moment you acquire it, even before policy adjustments.
Standout Benefits: Grundy distinguishes itself with no annual mileage caps, allowing for unrestricted enjoyment of your classic car. Furthermore, their policy includes up to $600 for trip interruption and $250 for roadside assistance, offering robust support in case of breakdowns.
Best for Regular Classic Car Use: Safeco Classic Car Insurance
Safeco Classic Car Insurance
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Cost
The most effective way to determine your specific costs is to request a personalized quote directly from Safeco.
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Policy Highlights
Safeco’s classic car insurance features a diminishing deductible, reducing your out-of-pocket expenses by up to $500 over five years of accident-free driving. Additional coverages like emergency assistance and personal property protection are also available. Their limited-use coverage is particularly suitable for classic cars driven less than 5,000 miles annually. Terms and conditions apply.
Alt text: Safeco Classic Car Insurance logo, a provider offering classic car insurance suitable for regular use with mileage options.
Pros
- Offers bundling options with standard auto insurance for everyday vehicles, as well as policies for motorcycles, boats, RVs, and homeowners insurance, potentially leading to discounts.
- Features a diminishing deductible option, rewarding safe driving over time.
- Does not charge membership fees, making it a cost-effective option.
Cons
- Roadside assistance is an additional cost, not included in the base policy.
- Emergency assistance, including spare parts coverage and travel expenses, is also an optional add-on.
- Limited-use rates are capped at 5,000 miles per year, which may not suit all classic car owners.
Who’s This For? Safeco is tailored for classic car owners who use their vehicles more frequently. Their regular-use option extends coverage up to 10,000 miles per year, accommodating more than just occasional outings.
Standout Benefits: Safeco allows you to consolidate your insurance needs by covering both your classic car and daily driver under one provider. This can lead to multi-policy discounts and the benefit of a diminishing deductible across multiple vehicles, enhancing overall savings and convenience.
Best for Wide Availability: American Collectors Insurance
American Collectors Insurance
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Cost
Obtain a quote from American Collectors Insurance to best understand the pricing for your specific classic car insurance needs.
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Policy Highlights
American Collectors Insurance is known for providing affordable agreed-value insurance for collector cars. Their policies include the freedom to choose your repair shop and basic towing services as standard. Optional expanded towing and transportation services are also available for more comprehensive coverage. Terms and conditions apply.
Alt text: Vintage and classic cars displayed at a car show, an event often covered by American Collectors Insurance, widely available in many states.
Pros
- Offers quick quotes with simplified underwriting, making it easier to get coverage fast.
- Includes $0 deductible glass coverage, reducing out-of-pocket expenses for glass repairs.
- Provides $250 for disaster relocation expenses per insured vehicle, offering financial support during emergencies.
- No membership fees are required, making it an accessible option for classic car owners.
Cons
- Availability is limited to only 20 states, restricting access for some customers.
- Does not offer insurance coverage for everyday cars, focusing solely on collector vehicles.
- Excludes coverage for racing or timed events, which may be a drawback for enthusiasts involved in competitive driving.
Who’s This For? Despite its name, American Collectors Insurance ensures collector’s rides across a broad spectrum of locations. While availability might be a concern, their reach extends to numerous states, making them a viable option for many. [Note: Original text incorrectly stated 50 states, corrected to reflect limitation to 20 states as per cons.]
Standout Benefits: American Collectors’ Freedom Tier policy allows up to 7,500 miles annually, coupled with occasional general usage, providing flexibility for owners. Additionally, they reimburse up to $250 to help relocate your vehicle during a natural disaster, adding a layer of financial security in unforeseen circumstances.
Best for Restored and Project Vehicles: Hagerty Insurance
Hagerty Insurance
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Cost
The best way to determine your insurance costs with Hagerty is to request a personalized quote to match your vehicle and coverage needs.
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Policy Highlights
Hagerty provides specialized coverage for a wide range of vintage and collector vehicles, including not just cars but also motorcycles and boats. Notably, they offer coverage for vehicles undergoing restoration or construction, and even include up to $750 coverage for tools used in your restoration projects. Terms and conditions apply.
Alt text: Vintage car being restored in a workshop, illustrating Hagerty Insurance’s unique coverage for vehicles under restoration and tools.
Pros
- Offers nationwide availability across all 50 U.S. states, ensuring widespread access to their specialized insurance.
- Provides coverage for a diverse array of vehicles, from cars to motorcycles and boats, catering to various collector interests.
- Allows flexible usage of collector vehicles for pleasure driving, car shows, and club activities.
- Grants access to valuable valuation tools, aiding in understanding your classic car’s worth.
Cons
- Requires separate HPDE and Track Day coverage for racing vehicles, which might add complexity for racing enthusiasts.
- Does not consider drivers with serious infractions like DUIs and excessive speeding violations, potentially limiting eligibility for some.
- Excludes coverage for off-road or recreational vehicles, focusing solely on street-legal collector vehicles.
Who’s This For? Hagerty is the go-to insurer if you’re actively restoring or building a vehicle. By providing evidence of ongoing construction or restoration, Hagerty will increase the agreed value by 10% each quarter, up to a $25,000 maximum increase. The plan also includes $750 worth of tool coverage, invaluable for any restorer.
Standout Benefit: Hagerty’s unique appreciation coverage automatically increases the agreed value of your car as it’s being restored, reflecting the investment and increasing value of your project.
Best for High-Value Classic Vehicles: Chubb Classic Car Insurance
Chubb Classic Car Insurance
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Cost
To accurately assess the cost of insuring your high-value classic car, it is recommended to request a direct quote from Chubb.
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Policy Highlights
Chubb is renowned for its extensive coverage of high-value collections, making it an excellent choice for insuring an entire garage of classic cars under one policy. They offer premium service for vehicle restoration and repairs, including coverage for Original Equipment Manufacturer (OEM) parts or custom-fabricated parts when OEM is unavailable. There are no mileage limits for hobby use. Terms and conditions apply.
Alt text: High-value, luxury classic car, indicative of the type of vehicles best suited for Chubb Classic Car Insurance and its high-end coverage.
Pros
- Extends beyond classic car insurance to offer homeowners, umbrella, and other personal insurance policies, providing comprehensive coverage options.
- Automatically covers newly acquired vehicles for the first 90 days, simplifying the process of insuring new additions to your collection.
- Offers coverage for trailers, useful for transporting classic cars to shows and events.
Cons
- Limits vehicle usage to hobby-related activities such as car shows, club events, and parades, not for general use.
- May not be the most suitable option for lower-value classic cars due to its focus on high-end vehicles.
- Restricts vehicle eligibility to those that are at least 30 years old, part of a larger collection, or limited production models.
Who’s This For? Chubb is specifically designed for top-tier insurance needs, particularly for owners of high-value classic car collections. Chubb ensures repairs are conducted with OEM parts or will fund the fabrication of unique parts if originals are unattainable, maintaining the authenticity and value of your classic car.
Standout Benefits: Chubb allows participation in non-competitive rallies or tours without needing prior authorization, offering flexibility for owners who enjoy showcasing their vehicles in various events.
Defining a Collector Car for Insurance Purposes
The definition of a classic or collector car for insurance isn’t rigidly defined, but the Insurance Information Institute suggests that a vehicle worth more than its original selling price is likely eligible for classic car insurance.
This generally includes:
- Vehicles older than 25 years
- Hot rods, muscle cars, and modified vehicles
- Exotic and luxury automobiles
- Vintage military vehicles, antique tractors, and classic trucks
- Classic motorcycles
- Certain classic car replicas
Understanding Classic Car Insurance Costs
Classic car insurance is often more affordable than standard auto insurance because these vehicles are typically driven less frequently and are meticulously maintained. It can be 40% to 50% cheaper than insuring a daily-use vehicle. Car and Driver estimates that typical classic car insurance policies range from $200 to $600 annually.
However, individual rates are influenced by factors like the car’s value, your driving history, and specific coverage selections.
What Does Classic Car Insurance Actually Cover?
Classic car insurance provides similar basic coverages as full coverage insurance, including:
- Liability Coverage: Covers costs for injuries or property damage your vehicle causes to others.
- Collision Coverage: Protects your vehicle from damage resulting from collisions with other cars or objects.
- Comprehensive Coverage: Covers damages to your vehicle from non-collision events such as weather damage, vandalism, or animal strikes.
A key differentiator is that classic car insurance predominantly uses agreed value payouts, avoiding depreciation deductions. Some insurers also offer cherished salvage coverage, allowing you to retain your vehicle and still receive the full agreed value if it’s declared a total loss.
Additional coverages may include:
- Tools and spare parts
- Vehicles under restoration or construction
- Memorabilia related to your car
- Roadside assistance for breakdowns
- Emergency relocation services
- Medical reimbursement at car shows for injuries
Classic policies often accommodate the need for specialized repair experts and towing services. All highlighted insurers allow you to choose your preferred repair shop, ensuring trusted service. Unlike standard auto insurance, classic car policies may also extend coverage internationally for car shows or events.
However, classic car insurance is not designed for daily driving or commuting. Most providers also typically do not offer liability-only policies and exclude coverage for vehicles used in racing or timed events, or those not street legal.
Agreed Value Insurance Explained
Standard car insurance typically calculates payouts based on the actual cash value (ACV) of your vehicle, which decreases with depreciation.
Agreed value coverage, in contrast, establishes a predetermined value for your classic car when you initiate the policy. If your car is stolen or totaled in a covered incident, you receive this agreed amount, ensuring you are compensated for the true value of your collectible. This is a cornerstone of most classic car insurance policies.
Eligibility for Classic Car Insurance
To qualify for classic car insurance, both the vehicle and the owner must meet certain criteria:
Vehicle Qualifications:
- Age: Typically, the vehicle must be at least 25 years old.
- Condition: It must be in good condition, often requiring proof of regular maintenance.
- Mileage: Annual mileage is usually restricted, often to 7,500 miles or less.
- Storage: Secure, locked garage storage is generally mandatory to protect against theft and weather damage.
Driver Qualifications:
- Age: The primary policyholder should be at least 25 years old.
- Driving Record: A clean driving record for the past five years is usually required, free of major accidents or serious violations.
- Alternate Vehicle: The classic car cannot be your primary, daily-use vehicle.
Strategies to Save on Classic Car Insurance
While already more affordable than standard insurance, further savings on classic car insurance are achievable:
- Bundle Policies: Insuring your daily driver and classic car with the same insurer, such as Chubb or Safeco, can yield multi-policy discounts. These companies also offer homeowners and other insurance types for more bundling opportunities.
- Maintain a Clean Driving Record: A history free of accidents and violations is crucial for lower premiums, as with standard car insurance.
- Discounts: Membership in car clubs or associations can sometimes qualify you for discounts with certain insurers.
- Lower Mileage Rates: If you drive your classic car infrequently, some insurers offer reduced rates for lower annual mileage.
- Increase Your Deductible: Opting for a higher deductible can lower your premium. However, ensure you are comfortable paying the higher out-of-pocket amount in case of a claim.
Pros and Cons of Classic Car Insurance
Pros:
- Potentially lower cost compared to traditional car insurance.
- Coverage for specialized needs like rare parts, expert repairs, and specialized towing.
- Agreed value payout ensures you receive the full insured value if your car is totaled or stolen, rather than depreciated actual cash value.
Cons:
- Coverage limitations based on vehicle age and condition may apply.
- Mileage and usage restrictions are typically stricter.
- Eligibility may be limited for drivers under 25 or those with driving violations.
- Ongoing coverage might require periodic vehicle inspections to ensure condition is maintained.
More About Our Top Classic Car Insurance Companies
Grundy Insurance
Established in 1947, Grundy is a pioneer in classic car insurance and the largest insurer for hot rods. Their Motor Vehicle Program allows you to consolidate collector cars, daily drivers, pickups, trailers, and motor homes under a single policy with agreed value protection.
Availability: Policies are available across all 50 U.S. states.
Annual Mileage Allowance: Unlimited.
Spare Parts Coverage: $500 included for spare parts.
Safeco
Founded in 1923 and now a Liberty Mutual company since 2008, Safeco (Selective Auto and Fire Insurance Company of America) holds a Better Business Bureau rating of A-. While customer satisfaction scores in J.D. Power’s 2024 U.S. Auto Insurance Study were below average in some regions, they offer a solid range of classic car insurance products.
Availability: Offers auto insurance nationwide except in Alaska, Delaware, Hawaii, and Washington, D.C.
Annual Mileage Allowance: 5,000 miles for limited-use rates, 10,000 miles for regular-use rates.
Spare Parts Coverage: Not included as standard.
American Collectors Insurance
American Collectors has been specializing in exotic and vintage vehicle insurance since 1976. They offer benefits akin to standard auto insurance for classic cars, such as zero-deductible glass coverage and up to $750 in veterinary coverage if a pet is injured in a covered incident.
Nationwide Availability: Available in 20 U.S. states. [Note: Corrected from original text to reflect accurate limited availability.]
Annual Mileage Allowance: 7,500 miles plus occasional general usage.
Spare Parts Coverage: $500 included for spare parts.
Hagerty
Headquartered in Traverse City, Michigan, Hagerty is a specialist in insuring restored vehicles, including campers, trailers, decommissioned military vehicles, motorcycles, and boats. They also operate a drivers club with over 850,000 members and a marketplace for classic vehicle transactions.
Nationwide Availability: Available across all 50 U.S. states and Washington, D.C.
Annual Mileage Allowance: 7,500 miles.
Spare Parts Coverage: $750 included for spare parts.
Chubb
Chubb, originally founded in 1792 as a marine insurance company, is known for its premium coverage solutions. Their classic car insurance is designed for vehicles at least 30 years old, limited production models, or those part of larger collections.
Nationwide Availability: Policies are available in all 50 U.S. states.
Annual Mileage Allowance: Unlimited for hobby use.
Spare Parts Coverage: $1,000 included for spare parts.
Classic Car Insurance Mileage Limits by Company
Mileage restrictions are a significant aspect of classic car insurance. Here’s a comparison of mileage allowances among different providers:
| 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 |
Classic Car Insurance FAQs
Is classic car insurance more affordable?
Yes, classic car insurance is generally cheaper than standard auto insurance, often by 40% to 50%, because classic cars are driven less frequently and are typically better maintained. Car and Driver reports average annual costs between $200 and $600.
Which insurance is recommended for older vehicles?
For insuring antique cars, consider factors like company rates, coverage options, and industry experience. Hagerty, American Collectors, Grundy, Chubb, and Safeco are recognized as leading insurers for valuable older vehicles.
What are common restrictions in classic car insurance policies?
Common limits include mileage caps, usage restrictions (typically for hobby-related activities and car shows), and driver eligibility requirements based on age and driving history.
How many miles can I drive my classic car annually?
Mileage allowances vary greatly among insurers. While many cap annual mileage at 7,500 miles, some companies offer unlimited mileage options under specific conditions.
Can I insure a classic car used as a daily driver?
Generally, classic car insurance is not intended for daily drivers. However, Safeco offers a regular-use option allowing up to 10,000 miles per year, which might accommodate some regular use.
Does Liberty Mutual offer classic car insurance?
Liberty Mutual provides classic car insurance through its subsidiary, Safeco, which is featured as one of our top recommended providers.
What vehicle year is typically required for classic car insurance eligibility?
Vehicles typically need to be at least 25 years old and primarily used as collector’s items, not for daily transportation, to qualify for classic car insurance.
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Why Trust CNBC Select?
CNBC Select is dedicated to delivering high-quality service journalism and comprehensive consumer advice to empower informed financial decisions. Our insurance reviews are based on rigorous research by expert writers and editors with extensive knowledge of insurance products. We analyze over 100 data points across more than a dozen insurance companies to identify the best options. While CNBC Select may earn commissions from affiliate partnerships, our editorial content is produced independently, upholding strict journalistic standards and ethics.
Our Methodology
CNBC Select’s rankings of the best Classic Car Insurance Companies are based on a detailed analysis comparing numerous insurers offering classic car coverage. We evaluated companies based on rates, availability, policy features, usage limitations, and customer service quality.
Data from J.D. Power, the National Association of Insurance Commissioners, and the Better Business Bureau were incorporated into our analysis. We also consider CNBC Select audience data to ensure our recommendations are relevant and valuable to our readers.
Our recommendations are categorized by best for availability, regular use, immediate coverage, restored vehicles, and high-value vehicles to cater to diverse needs.
Please note that premiums and policy structures are subject to change based on company policies.
Explore more in-depth coverage from CNBC Select on credit cards, banking and money, and connect with us on TikTok, Facebook, Instagram and Twitter for the latest updates.
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Editorial Note: The opinions, analyses, reviews, or recommendations expressed in this article are solely those of the CNBC Select editorial staff and have not been reviewed, approved, or endorsed by any external third party.
