Owning a classic car is more than just a hobby—it’s a passion, a lifestyle, and often a significant insurance investment. Whether you cherish a vintage 1965 Ford Mustang, a 1957 Chevy Bel Air, or a British MG from the 1970s, protecting your prized possession requires more than standard auto insurance. That’s where classic car insurance companies come in. These specialized providers understand the unique needs of classic and antique car owners and offer tailored coverage options designed to preserve your investment.
In this comprehensive article, we’ll dive into what makes classic car insurance different, explore the top classic car insurance companies, and offer insights on how to choose the best one for your vehicle and lifestyle.
What Is Classic Car Insurance?
Classic car insurance is a specialized policy designed for collector vehicles that are typically used less frequently than daily drivers. It accounts for factors such as:
Limited usage (e.g., weekend driving, exhibitions, or car shows)
Agreed value coverage, where you and the insurer agree on the car’s worth upfront
Vehicle appreciation, recognizing that many classic cars increase in value over time
Special restoration and parts coverage
Storage protection for cars kept in garages or under cover
These policies cater to the distinct needs of collector car ownerUnderstanding Gap Insurance for Car Loans: What Every Car Buyer Should Knows and often offer better protection at a lower premium than standard auto insurance, provided certain eligibility conditions are met.
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What Qualifies as a Classic Car?
Before diving into insurance providers, it’s important to understand what constitutes a “classic car” in insurance terms. While definitions may vary slightly between insurers, most categorize vehicles as follows:
Classic Car: Typically 20–40 years old, maintained in original or restored condition
Antique Car: Usually 45 years or older
Collector Car: Any vehicle that is considered collectible, including limited-production models, exotic cars, muscle cars, hot rods, and vintage trucks
Note: Usage, condition, and storage all affect eligibility for classic car policies.
Top Classic Car Insurance Companies
While many insurance providers offer standard auto insurance, only a few specialize in classic and collector vehicles. Below are the most trusted and well-reviewed classic car insurance companies in the U.S.
1. Hagerty
Overview: Hagerty is perhaps the most recognized name in classic car insurance. Founded by classic car enthusiasts in 1984, the company has built a reputation around offering flexible policies specifically for vintage and collectible vehicles.
Key Features:
Agreed Value Coverage: You get the full insured amount in case of a total loss.
Flexible Usage: Allows occasional pleasure driving, not just limited to shows.
Hagerty Drivers Club: A membership-based program that offers roadside assistance, market trend reports, and exclusive events.
Vehicle Valuation Tools: Helps you track your car’s value over time.
Pros:
Deep expertise in classic vehicles
Broad eligibility criteria
Excellent customer service
Cons:
May not be the cheapest option
No coverage for daily drivers
2. Grundy Insurance
Overview: Grundy, also known as “The Olde Original,” was founded in 1947 and is one of the oldest classic car insurers in the United States. Grundy is known for its “Agreed Value” coverage and expansive policy options.
Key Features:
Full Agreed Value with No Deductible: Unique among classic insurers.
No Mileage Restrictions: As long as it’s not used for daily commuting.
Garage Liability and Spare Parts Coverage: Extra protections available.
Multi-Vehicle Discounts: Great for collectors with multiple cars.
Pros:
Offers generous policy features
Covers museum collections and commercial uses
Trusted by long-time collectors
Cons:
Requires vehicles to be stored in a secure garage
Can be selective in underwriting
3. American Collectors Insurance
Overview: A well-established insurer that specializes in classic and antique automobiles, American Collectors Insurance offers customizable policies and a unique “TLC” (Tiered Mileage Plan).
Key Features:
Agreed Value: Full payout without depreciation.
Flexible Mileage Plans: Choose between 1,000 to 7,500 miles per year.
Coverage for Automobilia and Spare Parts: Ideal for collectors.
Restoration Coverage: Protects cars during the restoration process.
Pros:
Highly customizable
Strong customer satisfaction scores
Optional towing and flatbed services
Cons:
Not available in all states
Limited coverage for exotic imports
4. J.C. Taylor
Overview: With over 70 years of experience, J.C. Taylor is a classic insurance provider with deep ties to the antique auto club community.
Key Features:
Endorsed by AACA (Antique Automobile Club of America)
Agreed Value Policies
No Deductible Options
Multiple Liability Limits
Pros:
Well-respected within enthusiast circles
No mileage logs required
Simplified application process
Cons:
Not as tech-savvy as newer insurers
Limited digital tools and mobile access
5. American Modern Insurance Group
Overview: A leading specialty insurer, American Modern offers policies for a wide range of unique vehicles, including kit cars, muscle cars, and antique autos.
Key Features:
Agreed Value Coverage
Optional Usage Limits: Choose your preferred mileage cap.
Restoration and Modification Coverage
Flexible Eligibility: Covers a broad range of vehicles
Pros:
Covers project cars under restoration
Strong financial backing (part of Munich Re)
Custom policy features
Cons:
May be more expensive than niche players
Some limitations for high-value vehicles
Factors to Consider When Choosing a Classic Car Insurance Company
When selecting the right insurer for your classic car, here are key elements to consider:
1. Agreed Value vs. Stated Value
Choose a company that offers Agreed Value coverage. This ensures you’ll receive the full insured value of the vehicle in the event of a total loss, without depreciation.
2. Mileage Limits
Some policies cap the number of miles you can drive annually. If you attend lots of shows or just enjoy weekend cruises, look for insurers with flexible or no mileage restrictions.
3. Usage Restrictions
Most classic car policies prohibit daily commuting. Understand how and when you can use your car without risking denial of a claim.
4. Storage Requirements
Classic car insurers often require the vehicle to be stored in a garage or secured facility. Confirm your storage situation meets these criteria.
5. Membership Discounts and Club Affiliations
Many insurers offer discounts to members of recognized car clubs (e.g., AACA, HCCA, PCA). These affiliations can also indicate a company’s commitment to the collector community.
6. Customer Service and Claims Experience
Look into user reviews, Better Business Bureau ratings, and third-party customer satisfaction scores. The ease and fairness of the claims process should weigh heavily in your decision.
Classic Car Insurance vs. Regular Car Insurance
Tips to Lower Your Premium
Although classic car insurance is typically less expensive than regular car insurance, here are some tips to lower your premiums even further:
Join a recognized classic car club for discounts
Bundle your policies (e.g., home and auto) with the same provider
Install security systems in your garage and car
Opt for higher deductibles if you can afford it
Limit annual mileage
Conclusion
Classic car insurance is not just a financial product—it’s peace of mind for enthusiasts who have invested time, money, and heart into their vehicles. Choosing the right insurer requires balancing coverage features with your lifestyle and how you plan to enjoy your car.
Companies like Hagerty, Grundy, and American Collectors Insurance lead the pack in providing robust, agreed-value policies tailored to collector needs. Each has strengths and limitations, but all cater to the shared passion that drives classic car ownership.
When you’re shopping for coverage, take your time to get quotes, compare benefits, read reviews, and—most importantly—ensure the insurer understands the soul of your car. After all, it’s not just about what your car is worth—it’s about what it means to you.
