Owning a vintage roadster or collector vehicle requires specialized protection that standard auto insurance simply cannot provide. Classic cars—typically vehicles at least 25 years old or considered collector’s items—need coverage based on agreed value rather than actual cash value, which accounts for depreciation. Unlike daily drivers, these treasured automobiles come with strict mileage limits, proper storage requirements, and unique usage restrictions.
CNBC Select has analyzed the leading classic car insurance providers to identify the best options across multiple categories, from immediate coverage to high-value vehicle protection. This comprehensive guide examines policy features, mileage allowances, coverage limits, and provider availability to help you make an informed decision.
Why Classic Car Insurance Differs From Standard Policies
Traditional car insurance calculates payouts based on your vehicle’s depreciated actual cash value. For a classic car that may appreciate over time, this approach would be financially devastating. Classic car insurance operates on an agreed value basis—you and your insurer predetermine the vehicle’s worth, and that full amount is paid if the car is totaled or stolen.
Additionally, collector vehicle policies typically include:
- Coverage for specialized repair services and OEM parts
- Protection for tools and spare parts
- Emergency roadside assistance and trip interruption benefits
- Flexible usage for car shows, exhibitions, and club events
Best for Immediate Coverage: Grundy
Who’s this for? Grundy stands out for collectors who frequently add vehicles to their portfolio. When you purchase a new classic car, Grundy policies automatically extend coverage while the vehicle is in transit or before it arrives at your property.
Standout benefits: Breakdown protection includes up to $600 in trip interruption coverage plus $250 for roadside assistance, ensuring you can get home safely if your classic car encounters mechanical issues during a journey.
Grundy Insurance Policy Highlights
| Feature | Detail |
|---|---|
| Vehicle eligibility | Cars over 25 years old; muscle and exotic cars of any age |
| Nationwide availability | All 50 U.S. states |
| Annual mileage allowance | Unlimited |
| Spare parts coverage | $500 |
| Key requirements | Locked garage storage, drivers must be at least 25 years old |
Pros: Available nationwide, offers classic boat coverage and homeowners policies, unlimited annual miles
Cons: Requires locked garage storage, minimum driver age of 25, no automatic value increases
Best for Customization: American Modern
Who’s this for? American Modern provides exceptional flexibility for classic car owners at various restoration stages. You can select comprehensive-only coverage while your vehicle undergoes restoration work like repainting or reupholstery. For those seeking lower premiums, you may choose a coverage amount below your vehicle’s agreed value.
Standout benefits: The ability to bundle with homeowners insurance simplifies policy management and typically provides discount opportunities.
American Modern Collector Vehicle Insurance
| Feature | Detail |
|---|---|
| Coverage options | Full coverage (comprehensive, liability, collision) or comprehensive only |
| Nationwide availability | All 50 U.S. states and Washington, D.C. |
| Annual mileage allowance | 1,000, 3,000, 6,000, or unlimited miles |
| Spare parts coverage | Available |
| Additional benefits | $750 pet injury coverage, trailer coverage options |
Pros: Homeowners insurance bundling available, pet injury coverage included, multiple mileage limit choices including unlimited option
Cons: No racing coverage, vehicle must be stored in locked garage or building
Best for Regular Driving: Safeco
Who’s this for? Safeco’s regular-use option permits up to 10,000 miles annually on your classic car—significantly higher than the typical 6,000-mile maximum found elsewhere. This makes Safeco ideal for owners who actually enjoy driving their collector vehicles regularly.
Standout benefits: Insuring both your classic car and daily driver with Safeco qualifies you for a multi-policy discount and a diminishing deductible on both vehicles.
Safeco Classic Car Insurance
| Feature | Detail |
|---|---|
| Availability | Nationwide except Alaska, Delaware, Hawaii, and Washington, D.C. |
| Annual mileage allowance | 5,000 miles (limited-use rates), 10,000 miles (regular-use rates) |
| Spare parts coverage | Not included |
| Unique feature | Diminishing deductible reduces payout by up to $500 after five claim-free years |
Pros: Bundle with traditional auto insurance, diminishing deductible benefit, no membership fees
Cons: Roadside assistance costs extra, not available nationwide, limited-use capped at 5,000 miles annually
Best for Availability: American Collectors
Who’s this for? Unlike many competitors that restrict coverage to specific regions, American Collectors Insurance provides coverage in all 50 U.S. states and Washington, D.C.
Standout benefits: The Freedom Tier allows up to 7,500 miles per year plus occasional general usage. The policy also reimburses up to $250 to relocate your car during a natural disaster.
American Collectors Insurance
| Feature | Detail |
|---|---|
| Coverage highlights | Agreed-value insurance, choose your repair shop, basic towing services |
| Nationwide availability | All 50 U.S. states and Washington, D.C. |
| Annual mileage allowance | 7,500 miles (plus occasional general usage) |
| Spare parts coverage | Available |
| Additional benefit | $0 deductible glass coverage |
Pros: $0 deductible glass coverage, $250 disaster relocation expenses, choose your own mechanic
Cons: Racing or timed events not covered
Best for Restored Vehicles: Hagerty
Who’s this for? Hagerty is the top choice for vehicles undergoing active restoration. Upon providing proof of restoration work, Hagerty increases the agreed value by 10% quarterly, up to a maximum of $25,000.
Standout benefit: Greater flexibility for using your vehicle at club functions, tours, exhibitions, and pleasure driving compared to other insurers. Plans include $750 in automotive tools coverage.
Hagerty Insurance
| Feature | Detail |
|---|---|
| Vehicle types | Collector cars, motorcycles, boats—including those being built or restored |
| Nationwide availability | All 50 U.S. states and Washington, D.C. |
| Annual mileage allowance | 7,500 miles |
| Spare parts coverage | $750 |
| Valuation tools | Access to useful vehicle valuation resources |
Pros: Available in all 50 states, flexible usage for exhibitions and tours, valuation tools access
Cons: Requires separate HPDE/Track Day coverage for racing, drivers with serious infractions excluded, no off-road or recreational vehicle coverage
Best for High-Value Vehicles: Chubb
Who’s this for? Chubb specializes in high-end insurance, and their classic car policies reflect this focus. Coverage includes repairs using original equipment manufacturer (OEM) parts or unique fabricated parts when originals are unavailable.
Standout benefits: No mileage limit for hobby use of classic cars insured with Chubb.
Chubb Classic Car Insurance
| Feature | Detail |
|---|---|
| Service focus | Top-tier restoration and repair coverage including OEM or fabricated parts |
| Nationwide availability | All 50 U.S. states and Washington, D.C. |
| Annual mileage allowance | Unlimited (limited to hobby use) |
| Spare parts coverage | $1,000 |
| Additional benefits | Covers new vehicle purchases for first 90 days, trailer coverage available |
Pros: Homeowners and umbrella insurance available, 90-day coverage for new purchases, trailer coverage included
Cons: Limited to hobby use only, may not suit lower-value cars, requires vehicles 30+ years old or limited production models
How Much Does Classic Car Insurance Cost?
Because collector vehicles are driven significantly less than daily drivers, classic car insurance typically costs 40% to 50% less than standard auto insurance. According to Baily Insurance Agency, classic car insurance policies average between $200 and $600 annually.
Your individual rates depend on:
- Vehicle value and condition
- Driving record
- Annual mileage
- Storage arrangements
- Your age and experience
What Does Classic Car Insurance Cover?
Classic car policies include the same basic coverage types as full coverage insurance:
Liability coverage: Pays for injuries or property damage caused by your vehicle
Collision coverage: Covers damage from collisions with another car or object
Comprehensive coverage: Pays for non-collision damage such as flooding, fire, or vandalism
The critical difference is the agreed value payout rather than depreciated cash value. Some companies offer cherished salvage coverage, allowing you to keep the vehicle while still receiving its guaranteed value if declared a total loss.
Additional coverages may include:
- Tools and spare parts
- Vehicles under restoration or construction
- Memorabilia and collectibles
- Roadside assistance and emergency relocation
- Auto show medical reimbursement
- International coverage for car show travel
Classic Car Insurance Mileage Limits Comparison
| Company | Annual Mileage Allowance |
|---|---|
| Safeco | 5,000 miles (limited use), 10,000 miles (regular use) |
| American Collectors | 7,500 miles + occasional general usage |
| Hagerty | 7,500 miles |
| Grundy | Unlimited |
| Chubb | Unlimited (hobby use only) |
| American Modern | 1,000, 3,000, 6,000, or unlimited |
When Is a Car Considered a Classic for Insurance?
To qualify for classic car insurance, vehicles typically must meet:
Vehicle requirements:
- Minimum 25 years old
- Good condition with regular service documentation
- Stored in locked garage
- Not used as primary transportation
Driver requirements:
- Primary policyholder at least 25 years old
- Clean driving record (no at-fault accidents or serious violations in last 5 years)
- Ownership of alternate daily driver vehicle
What Makes a Vehicle a Collector Car?
According to the Insurance Information Institute, any vehicle worth more than its original selling price may qualify. This includes:
- Cars over 25 years old
- Hot rods, muscle cars, and modified vehicles
- Exotic and luxury automobiles
- Vintage military vehicles, antique tractors, and classic trucks
- Classic motorcycles and replicas
How to Save on Classic Car Insurance
While already cheaper than standard policies, additional savings opportunities include:
Bundle policies: Insuring your daily driver, classic car, and home with the same provider often earns discounts
Maintain clean record: Accident-free history helps keep rates lower
Seek discounts: Some insurers offer reductions for car club memberships
Choose lower mileage: Selecting lower annual mileage limits reduces premiums
Raise deductible: Higher deductibles lower premiums—ensure you can afford the out-of-pocket cost
Pros and Cons of Classic Car Insurance
Pros:
- Typically 40-50% cheaper than standard insurance
- Covers hard-to-find tools, parts, expert repair, and specialized towing
- Pays agreed-upon replacement value rather than depreciated cash value
Cons:
- Coverage limited by vehicle age and condition
- Strict mileage and usage limits
- Drivers under 25 or with violations may be ineligible
- Regular inspections may be required
Frequently Asked Questions
Is classic car insurance cheaper?
Yes, collector vehicles are driven much less frequently, making classic car insurance 40% to 50% cheaper than standard policies—typically $200 to $600 annually.
What insurance is best for old cars?
Based on comprehensive analysis, Hagerty, American Collectors, Grundy, Chubb, and Safeco rank among the best insurance companies for valuable older vehicles.
What are the limits on classic car insurance?
Most insurers cap annual mileage (typically 7,500 miles) and restrict usage to approved hobby activities and car shows. Owners must meet age and driving record requirements.
How many miles can you drive a classic car per year?
Limits vary significantly by provider. Many cap at 7,500 miles annually, while Grundy and Chubb offer unlimited mileage for hobby use.
Can you insure a classic car as a daily driver?
Typically no. Classic car policies exclude regular daily use. Safeco’s regular-use option allows up to 10,000 miles annually, but the vehicle should not be your primary transportation.
Does Liberty Mutual have classic car insurance?
Yes, through its subsidiary Safeco, which is among the top providers in this field.
What year vehicle needs classic car insurance?
Vehicles at least 25 years old owned solely as collector’s items (not for everyday use) are ideal candidates for classic car insurance.
Methodology: CNBC Select analyzed numerous classic car insurance companies based on rates, availability, features, usage limitations, and customer service. Data from J.D. Power, the National Association of Insurance Commissioners, and the Better Business Bureau was incorporated alongside audience engagement metrics. Recommendations are categorized by best for availability, regular use, immediate coverage, restored vehicles, and high-value vehicles.