What is classic car insurance?
Classic car insurance covers your collectible or antique vehicle, usually up to its agreed value. That means you’re covered up to an amount that you and your classic car insurance company agree on in advance. Since classic cars often increase in value, you’ll likely need insurance that fully protects the value of your classic or restored vehicle.
How does classic car insurance work?
Like standard auto policies, your insurer or agent will ask questions about you and the classic vehicle you want to protect. You’ll also select the coverages that work best for you. These factors will help determine your price for insurance. You’ll be covered when you take your classic car to auto shows and tours, collector vehicle functions, and for occasional pleasure driving.* If your vehicle is damaged in a covered incident, your classic car insurer will pay for the repairs or losses up to the limits agreed upon when you purchased the policy (deductible-free options are available on most policies).
Keep in mind, classic car insurance typically covers more than just classic and collectible vehicles. You can also usually insure vintage motorcycles, military vehicles, milk trucks, sport vehicles, kit cars, exotic cars, street rods and all antique vehicles, including tractors.
What is considered a classic car?
While the age of a classic vehicle will often range between 25 and 50 years old (50+ may be considered an antique car), there is no true consensus for when a car is considered a classic. Cars of any age may be insurable by Progressive Classic Car by Hagerty. Note that each insurance company will have their own rules when it comes to classification. Your state may also have different stipulations when it comes to defining classic vehicles based on age, weight, usage, or manufacturing. But the common thread among classic car owners is that their older vehicle is worth preserving and may even be a collectible.
Here are some examples of popular classic cars:
- 1963 Mercedes Benz 300SL
- 1967 Ford Thunderbird
- 1969 Chevrolet Camaro
- 1969 Dodge Charger
- 1970 Datsun 240X
Do I need insurance on my classic car?
Auto insurance is mandated in all states except New Hampshire (if you cause an accident, New Hampshire still requires financial responsibility), so you will need liability coverage if you plan on driving your classic or collectible car. Driving without insurance could result in a fine or license suspension, so make sure you’re covered even if your classic car is only used for an occasional spin around the block. Moreover, it makes sense to safeguard all that you’ve invested into your classic vehicle.
Why classic car insurance differs from regular auto insurance
Your regular auto policy may not cover you for the actual value of your classic car. With Progressive Classic Car by Hagerty, your classic car is protected by Hagerty’s Guaranteed Value® coverage which pays you the full agreed value of the vehicle in the event of a covered total loss,** minus your deductible and/or salvage value. Additionally, standard auto policies will usually rebuild or replace your vehicle with aftermarket parts. Classic car insurance allows for original parts, if that’s what your car had, so as not to compromise the integrity of your special vehicle.
What does a classic car insurance policy cover?
Damages to your classic car
Physical damage coverage: Regular car insurance generally covers your car up to its actual cash value, which includes depreciation. Classic car insurance, however, specializes in covering your vehicle’s agreed value, which means you’ll never sweat depreciation. Instead, you’ll receive every cent of your car’s insured value if your vehicle is stolen or totaled.
Damages/injuries you cause
Liability coverage: Classic car insurers will provide at least the minimum liability required by your state. Progressive Classic Car by Hagerty generally matches the amount of liability coverage on your everyday auto policy.
Most classic car insurers will not offer liability-only policies. Additionally, race and non-street legal vehicles normally won’t be eligible for liability coverage.
Roadside assistance: Classic car insurers normally offer the option to purchase full-service roadside programs featuring flatbed towing with soft straps. At Progressive Classic Car by Hagerty, optional roadside assistance includes:
- Towing to the nearest repair facility
- Pulling your stuck car out of mud, snow, water, or sand if you’re within 100 feet from a maintained public road (called winching)
- Battery jump-start
- Fuel delivery (you only pay the cost of fuel)
- Flat tire changes
Unique add-on coverage options from Progressive Classic Car by Hagerty
Vehicle Under Construction coverage: If you’re restoring a vehicle, this coverage provides automatic quarterly increases to your car’s physical damage coverage. That means, every four months, you’ll gain an additional 10% in coverage, up to a maximum of $25,000,† from Hagerty to keep up with your restoration work.
Spare Parts and Automotive Tools coverage: Most classic car insurers, including Hagerty, offer coverage for spare parts and personal tools used to maintain or restore your vehicle. At Hagerty, you can get coverage for spare parts even if they are not intended for the vehicle on the policy.
Automobilia coverage: Classic car owners may have collectible items that need to be insured, like hood ornaments, vintage license plates, gas pumps and station displays, tractor memorabilia, automotive literature, etc. With Hagerty, you can purchase coverage to help safeguard your valuable automotive collectibles.
Cherished Salvage coverage®: If your car is totaled in a covered accident, you’ll have the right to keep your salvaged vehicle†† and still receive the Guaranteed Value® payout from Hagerty on your claim (minus your deductible and/or if your vehicle is recovered). Remember, your Guaranteed Value® payout amount will always be listed in your policy.
Classic car insurance specializes in covering your vehicle’s agreed value, which means you’ll never sweat depreciation.
When am I not covered under classic car insurance?
Classic car insurance is designed for secondary vehicles, meaning it’s not meant to cover your daily driver. If your classic or collectable car is your everyday ride, you’ll need to cover it with a standard auto policy.
How classic car insurance is priced
Your rate for classic car insurance will depend on many factors, and vary by insurer. At Progressive Classic Car by Hagerty, here are a few of the most significant variables affecting price:
Your vehicle’s value: The age, model, and condition of your car will greatly influence how much you pay to insure it.
Location/storage of the vehicle: The state you live in will always affect insurance pricing, and so will where you store the vehicle. Safeguarding your vehicle in a locked garage or storage facility is always favorable to your insurer.
How you drive the vehicle: Classic car insurance is not designed for everyday use vehicles, so mileage will affect pricing. However, Hargerty can provide coverage for a range of mileage options.
Unsure of what your special vehicle is worth? Progressive Classic Car by Hagerty offers Hagerty Valuation Tools® to help you properly appraise your classic car, truck, or motorcycle.