How Much Does Classic Car Insurance Cost? What You Should Know

Photo by Shukhrat Umarov on Pexels

Want to buy a classic car? But you don’t know how much it might cost to insure?

So yeah, classic car insurance is quite different from regular car insurance, so why is that? It is designed specifically for cars that are old, rare, and you don’t drive every day.

Because of it, costs less than regular insurance!

Most classic car owners pay between $200 and $600 a year for insurance, much cheaper than standard insurance, which can cost well over $1.000 annually.

Reason behind it? Classic cars are typically driven far less.

People use them only on weekends, for special events, or car shows. So this limited use lowers the risk for the insurance company, that is why you are charged less.

What affects the cost?

1. Car’s value

The policies usually use something called agreed value, this means when you buy the policy, you and the insurer agree on what your car is worth.

If your car is damaged beyond repair, or stolen for example, the insurance company will pay you that agreed amount, not the lower market value that might change over time.

Keep in mind, the more valuable your classic car is, insurance premium will be much expensive.

2. How much you drive it

This is very important, insurance companies often limits the number of miles you can drive each year, commonly 2,500 to 5,000 miles.

So you need to remember that if you drive more than the allowed limit, can lead to higher premiums or even cancellation of your policy!

Since classic cars are mostly driven for leisure and not daily use, keeping mileage low helps keep insurance costs down.

3. Where you keep it

Where you store your classic car makes a difference, if you keep it in a locked garage, your insurance company will see it as safer from theft and damage.

Which means lower insurance premiums compared to leaving your car in front of your house or in an unsecured area!

4. Your driving history

Just like standard insurance, they will look at your personal driving record, a clean driving history with no accidents, means better rates.

5. Where you live

Also the area where you live also affects your insurance price, cities or neighborhoods with higher traffic accidents usually have higher insurance price, and living in quieter and safer area can reduce your cost.

What does classic car insurance cover?

Also this is the most important part in your interest, classic car insurance offers coverage trailored to your needs as a collector or hobbyiest, it generally includes liability coverage to protect you if you cause or damage others.

It also provides collision coverage if you accidentally damage your car and comprehensive coverage that protects against theft or fire, or weather related damage.

And another feature is agreed value coverage, which guarantees you will be paid the full amount you and your insurer agreed your car is worth if it is totaled.

So yes, many policies also ensure repairs are done by specialists familiar with classic cars and so your vehicle gets the right care, which is very important.

Why is classic car insurance cheaper than regular insurance?

BEcause the classic cars are driven less often and are well cared for, also the risk of accidents is much lower, insurance companies often give discounts if you belong to a classic car club, participate in car shows or have special security devices installed on your cars, all these factors help reduce the price.

What should you watch out for?

All you need to do is to be sure to check your policy mileage limits, since driving more than allowed can change your coverage.

Many classic car insurance policies do not cover daily commuting, so if you use your car regularly for work, you might need a different type of insurance.

Finally, keeping your car in good condition and stored safely is usually a requirement to keep your coverage valid.

Classic car insurance offers affordable, specialized coverage designed to protect your valuable car while fitting your lifestyle. Expect to pay a few hundred dollars a year, but be sure to shop around and compare offers. Choosing the right insurance means you can enjoy your classic car with peace of mind.