Insurance for a classic car is fundamentally different from your everyday vehicle. Unlike standard auto insurance, classic car coverage often revolves around an agreed value basis, rather than the depreciating actual cash value. This is crucial for protecting your investment in vehicles that are typically 25 years or older, or rare collector’s items.
Classic car insurance policies also come with unique considerations such as limitations on mileage and specific requirements for secure storage. If you’re the proud owner of a classic ride, securing a policy that truly safeguards your investment is paramount. We’ve carefully evaluated the market to bring you a selection of the best insurance companies specializing in these unique vehicles.
Best Classic Car Insurance Companies
Choosing the right classic car insurance company is vital to protect your prized possession. Here’s a breakdown of some of the top providers in the market, each with their unique strengths:
Best for Quick Coverage: Grundy Insurance
Grundy Insurance
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Cost
Request a quote for the most accurate cost estimate.
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Policy Highlights
Grundy specializes in classic car insurance for vehicles 25 years and older, and muscle and exotic cars of any age. They stand out by offering unlimited mileage and valuable benefits like towing and trip interruption expense coverage. Terms apply.
Pros
- Offers commercial insurance solutions for restoration shops, museums, and classic car dealerships.
- Provides personal insurance options, including classic boat coverage, personal umbrella policies, and homeowners insurance, offering comprehensive protection.
- Unlimited annual mileage, giving you freedom to enjoy your classic car without strict limits.
Cons
- Requires secure, locked garage storage to ensure vehicle protection.
- All drivers must be at least 25 years old, potentially limiting coverage for younger enthusiasts.
- Does not offer automatic value increases, requiring policy adjustments to reflect vehicle appreciation.
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Who’s this for? Grundy is ideal for owners needing immediate coverage, offering automatic protection for newly acquired classic cars while you finalize policy details.
Standout Benefits: Grundy eliminates annual mileage restrictions, a significant advantage for classic car owners. Additionally, their policy includes up to $600 for trip interruption and $250 for roadside assistance in case of breakdowns.
Best for Regular Use: Safeco Classic Car Insurance
Safeco Classic Car Insurance
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Cost
Obtain a personalized quote for accurate pricing.
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Policy Highlights
Safeco’s classic car insurance features a diminishing deductible, reducing your deductible up to $500 over five accident-free years. They also offer optional emergency assistance and personal property coverage. Their limited-use coverage is perfect if you drive your classic car under 5,000 miles annually. Terms apply.
Pros
- Offers bundling options with standard auto, motorcycle, boat, RV, and home insurance for potential discounts.
- Diminishing deductible option rewards safe driving with reduced out-of-pocket expenses.
- No membership fees, making it accessible without additional costs.
Cons
- Roadside assistance is an additional cost, not automatically included in the base policy.
- Emergency assistance (covering spare parts and travel expenses) is also an optional add-on.
- Limited-use rates are capped at 5,000 miles per year, which may be restrictive for some owners.
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Who’s this for? Safeco is designed for classic car owners who enjoy regular use, offering options for up to 10,000 miles per year.
Standout Benefits: Safeco allows you to bundle your classic car and daily driver insurance, potentially leading to multi-policy discounts and diminishing deductibles for both vehicles.
Best for Wide Availability: American Collectors Insurance
American Collectors Insurance
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Cost
Request a quote for specific cost information.
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Policy Highlights
American Collectors Insurance provides affordable agreed-value insurance for collector cars. Policies include your choice of repair shop and basic towing, with optional expanded towing and transportation services available. Terms apply.
Pros
- Quick quotes and simplified underwriting process for fast and easy policy acquisition.
- $0 deductible glass coverage included, protecting against windshield and glass damage at no extra cost.
- $250 disaster relocation expense coverage per insured vehicle, providing financial assistance during emergencies.
- No membership fees, offering straightforward access to coverage.
Cons
- Availability limited to 20 states, restricting access for owners in other regions.
- Does not offer coverage for everyday cars, focusing solely on collector vehicles.
- Coverage excludes racing or timed events, which may not suit owners who participate in such activities.
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Who’s this for? American Collectors Insurance is notable for its broad availability, insuring collector vehicles across all 50 U.S. states.
Standout Benefits: Their Freedom Tier policy allows up to 7,500 miles annually with occasional general use, plus reimbursement up to $250 for car relocation during natural disasters.
Best for Restored Vehicles: Hagerty Insurance
Hagerty Insurance
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Cost
Request a personalized quote for pricing details.
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Policy Highlights
Hagerty covers a wide range of vintage and collector vehicles, including cars, motorcycles, and boats. They offer specialized coverage for vehicles under restoration or construction, and even up to $750 for tool coverage for project cars. Terms apply.
Pros
- Available in all 50 U.S. states, ensuring nationwide access to their specialized coverage.
- Wide variety of vehicles eligible for coverage, including motorcycles, boats, and even military vehicles.
- Flexible usage for pleasure driving of collector vehicles, catering to hobbyist use.
- Access to useful valuation tools, helping owners accurately assess their classic car’s worth.
Cons
- Requires separate HPDE and Track Day coverage for racing vehicles, potentially adding complexity for owners who track their cars.
- Does not consider drivers with serious infractions, such as DUIs or excessive speeding, limiting eligibility for some.
- Excludes off-road or recreational vehicles, focusing specifically on street-legal collector vehicles.
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Who’s this for? Hagerty is perfect for those restoring or building a classic car. They increase the agreed value by 10% each quarter (up to $25,000 maximum increase) upon proof of restoration progress, and include $750 tool coverage.
Standout Benefit: Hagerty’s valuation tools and restoration coverage are invaluable for owners investing time and resources into their classic vehicles.
Best for High-Value Vehicles: Chubb Classic Car Insurance
Chubb Classic Car Insurance
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Cost
Request a quote for detailed pricing information.
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Policy Highlights
Chubb is renowned for insuring high-value collections, offering comprehensive coverage for entire garages under one policy. They provide top-tier service for vehicle restoration and repair, including coverage for OEM parts or custom-fabricated parts. No mileage limits for hobby use. Terms apply.
Pros
- Offers homeowners, umbrella, and other personal insurance lines, providing comprehensive coverage solutions.
- Automatically covers new vehicle purchases for the first 90 days, simplifying insurance for expanding collections.
- Provides coverage for trailers, useful for transporting classic cars to shows and events.
Cons
- Vehicle usage limited to hobby purposes like car shows, club activities, and parades, not for general use.
- May not be the best fit for lower-value classic cars due to its focus on high-end vehicles.
- Vehicle eligibility limited to those 30 years or older, part of a larger collection, or limited production models.
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Who’s this for? Chubb specializes in premium insurance, and their classic car policies are tailored for high-value vehicles and collections. Chubb covers repairs with original equipment manufacturer (OEM) parts or will fund unique fabricated parts if originals aren’t available, ensuring top-quality restoration.
Standout Benefits: Drivers don’t need pre-authorization for non-competitive rallies or tours, offering flexibility in enjoying their classic cars.
What Qualifies a Car as a Collector Car?
There isn’t a strict universal definition of a classic car. However, the Insurance Information Institute suggests a vehicle worth more than its original selling price could be considered for classic car insurance.
This typically 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
Classic Car Insurance Costs: What to Expect
Classic car insurance is often more affordable than standard auto insurance due to limited usage, typically costing 40% to 50% less. Car and Driver estimates the average classic car insurance policy ranges from $200 to $600 annually.
Your individual rate will vary based on your car’s value, driving history, and other factors.
Understanding Classic Car Insurance Coverage
Classic car insurance provides similar basic coverage to full coverage insurance, including:
Liability Coverage: Covers damages for injuries or property damage your vehicle causes.
Collision Coverage: Protects your vehicle from damage resulting from collisions with other vehicles or objects.
Comprehensive Coverage: Covers damages beyond collisions, such as those from weather events, vandalism, or animal strikes.
The key distinction is that classic car insurance usually operates on an agreed value basis, avoiding depreciation deductions. Some insurers offer cherished salvage coverage, allowing you to retain your car and still receive the agreed value if it’s declared a total loss.
Additional coverage options can include:
- Tool and spare parts coverage
- Coverage for vehicles under restoration
- Memorabilia coverage
- Roadside assistance
- Emergency relocation assistance
- Auto show medical reimbursement
Classic car policies often accommodate specialized repair experts and towing needs. All highlighted insurers allow you to choose your preferred repair shop, ensuring trusted service. Unlike standard auto insurance limited to the U.S., classic car policies may extend coverage internationally for car shows and events.
However, classic car insurance generally excludes daily use vehicles and typically doesn’t offer liability-only policies. Coverage is also usually excluded for vehicles not street-legal or used in racing or timed events.
Agreed Value Insurance Explained
Standard car insurance payouts are based on the actual cash value (ACV), which accounts for depreciation.
Agreed value coverage means that in case of theft or a total loss from a covered event, you receive the predetermined amount agreed upon with your insurer. This is the standard payout method for most classic car insurance policies.
Classic Car Insurance Eligibility Requirements
To qualify for classic car insurance, your vehicle typically needs to meet these criteria:
Age: Generally, the vehicle must be at least 25 years old.
Condition: The car should be in good condition with documented regular servicing.
Mileage: Mileage limits vary, but often vehicles shouldn’t be driven more than 7,500 miles annually.
Storage: Secure storage in a locked garage is usually required to protect against theft and weather.
Driver guidelines also exist:
Age: The primary policyholder should be at least 25 years old.
Driving Record: A clean driving record for the past five years, without at-fault accidents or serious violations, is generally needed.
Alternate Vehicle: The classic car should not be your primary daily vehicle.
Strategies to Save on Classic Car Insurance
While classic car insurance is already cost-effective, further savings are possible:
- Bundle Policies: Insuring your daily driver and classic car with the same insurer can lead to discounts. Companies like Chubb and Safeco also offer homeowners and other insurance types for bundling opportunities.
- Maintain a Clean Driving Record: Similar to standard car insurance, a clean record results in lower premiums.
- Discounts: Inquire about discounts for car club memberships and affiliations.
- Lower Mileage Rates: If you drive your classic car infrequently, lower mileage rate options may be available.
- Increase Your Deductible: Opting for a higher deductible can reduce your premium, but ensure you can comfortably afford the out-of-pocket expense if needed.
Pros and Cons of Classic Car Insurance
Pros:
- Often more affordable than traditional car insurance.
- Coverage for specialized needs like hard-to-find parts, expert repairs, and specialized towing.
- Agreed value payouts ensure you receive the full insured value, not depreciated actual cash value, in case of a total loss or theft.
Cons:
- Insurers may impose restrictions based on vehicle age and condition.
- Stricter limits on annual mileage and vehicle usage.
- Younger drivers or those with driving violations may be ineligible.
- Continued coverage might require periodic vehicle inspections.
More on Our Top Classic Car Insurance Companies
Grundy
Established in 1947, Grundy is a long-standing classic car insurer in the U.S., notably the largest for hot rods. Their Motor Vehicle Program allows you to combine collector cars, daily drivers, trucks, trailers, and motorhomes on a single policy with agreed value protection.
Availability: Policies available in all 50 U.S. states.
Annual Mileage Allowance: Unlimited.
Spare Parts Coverage: $500.
Safeco
Founded in 1923, Safeco, now a Liberty Mutual subsidiary since 2008, holds an A- rating from the Better Business Bureau. Customer satisfaction scores in J.D. Power’s 2024 U.S. Auto Insurance Study were slightly below average, and they have a higher-than-expected complaint volume.
Availability: Offers auto insurance nationwide except in Alaska, Delaware, Hawaii, and Washington, D.C.
Annual Mileage Allowance: 5,000 miles (limited use), 10,000 miles (regular use).
Spare Parts Coverage: Not included.
American Collectors
American Collectors has specialized in exotic and vintage vehicle insurance since 1976. They offer features similar to standard auto insurance, like zero-deductible glass coverage and up to $750 in veterinary coverage for pets injured in a covered event.
Nationwide Availability: All 50 U.S. states and Washington, D.C.
Annual Mileage Allowance: 7,500 miles plus occasional general usage.
Spare Parts Coverage: $500.
Hagerty
Headquartered in Traverse City, Michigan, Hagerty insures a broad spectrum of restored vehicles, including campers, trailers, military vehicles, motorcycles, and boats. They also run a drivers club with over 850,000 members and a classic vehicle marketplace.
Nationwide Availability: All 50 U.S. states and Washington, D.C.
Annual Mileage Allowance: 7,500 miles.
Spare Parts Coverage: $750.
Chubb
Established in 1792 as a marine insurance company, Chubb is known for premium coverage. Their classic car insurance covers vehicles at least 30 years old, limited production models, or those in larger collections.
Nationwide Availability: All 50 U.S. states.
Annual Mileage Allowance: Unlimited (hobby use only).
Spare Parts Coverage: $1,000.
Classic Car Insurance Mileage Limits by Company
Mileage restrictions are a key consideration when choosing classic car insurance.
| 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 typically significantly cheaper than standard auto insurance – often 40% to 50% less – because classic cars are driven less frequently. Car and Driver reports average annual costs between $200 and $600.
Which Insurance is Best for Vintage Cars?
When insuring a vintage car, consider the insurer’s rates, coverage options, and experience. Hagerty, American Collectors, Grundy, Chubb, and Safeco are highly recommended for valuable older vehicles.
What Are Common Limits on Classic Car Insurance?
Many insurers limit mileage, usage locations (typically to hobby activities and car shows), and may have age and driving record requirements for policyholders.
What’s the Typical Annual Mileage Limit for a Classic Car?
Mileage limits vary greatly by insurer. Many cap annual mileage at 7,500 miles, while some offer unlimited mileage options.
Can I Insure a Classic Car Used as a Daily Driver?
Generally, no. Classic car insurance is not designed for daily drivers. However, Safeco offers a regular-use option allowing up to 10,000 miles annually.
Does Liberty Mutual Offer Classic Car Insurance?
Yes, Liberty Mutual provides classic car insurance through its subsidiary, Safeco, a highly-rated provider in the classic car insurance market.
What Vehicle Year Typically Requires Classic Car Insurance?
Vehicles at least 25 years old, primarily used as collector’s items and not for daily driving, are generally eligible for classic car insurance.
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Why Trust CNBC Select?
CNBC Select is committed 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 insurance product knowledge. We analyze over 100 data points across numerous insurance companies. While CNBC Select may earn commissions from affiliate partnerships, our content remains editorially independent, adhering to strict journalistic standards and ethics.
Our Methodology
CNBC Select’s recommendations for the best classic car insurance are based on analyzing companies offering this specialized coverage. We compare companies based on rates, availability, features, usage restrictions, and customer service. Data from J.D. Power, the National Association of Insurance Commissioners, and the Better Business Bureau are incorporated into our evaluations. Audience data and engagement metrics are also considered when available. Our recommendations are categorized to highlight the best options for different needs, such as availability, regular use, and high-value vehicles. Note that premiums and policy structures are subject to change.
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