If you own a vintage roadster or a prized collector’s item, you likely understand that a standard auto insurance policy just doesn’t fit the bill. A classic car—generally defined as a vehicle at least 25 years old or a significant collector piece—requires specialized coverage. Unlike traditional policies that base payouts on “actual cash value” (which accounts for depreciation), classic car insurance relies on an “agreed-upon value” to ensure your investment is protected.
However, these policies often come with specific requirements regarding annual mileage limits and stringent vehicle storage standards. To help you navigate the market, CNBC Select has evaluated the top providers, analyzing their coverage options, flexibility, and financial reliability to bring you the best options currently available.
Top Classic Car Insurance Picks
Best for Immediate Coverage: Grundy
Grundy is an excellent choice if you are expanding your collection. Their policies feature automatic coverage for new additions, protecting your vehicle while it is in transit or before it arrives at your property.
- Standout Benefit: Includes up to $600 in trip interruption coverage and $250 for roadside assistance.
- Mileage: Unlimited.
Best for Customization: American Modern
For those in the middle of a restoration project, American Modern offers exceptional flexibility. You can opt for a “comprehensive-only” policy while your car is being repainted or reupholstered.
- Standout Benefit: You can bundle this with their homeowners insurance for significant discounts.
- Mileage: Flexible options including 1,000, 3,000, 6,000, or unlimited miles.
Best for Regular Driving: Safeco
If you enjoy taking your vintage ride out more often, Safeco is a standout. Their “regular-use” option permits up to 10,000 miles per year, which is far more generous than the typical industry cap.
- Standout Benefit: Allows you to bundle your classic ride with a traditional auto policy to earn a diminishing deductible.
- Mileage: 5,000 (limited) or 10,000 (regular).
Best for Nationwide Availability: American Collectors
American Collectors Insurance distinguishes itself by offering coverage across all 50 U.S. states and Washington, D.C.
- Standout Benefit: Their Freedom Tier allows for 7,500 miles annually and includes reimbursement of up to $250 to relocate your vehicle during a natural disaster.
- Mileage: 7,500 miles plus occasional general usage.
Best for Restored Vehicles: Hagerty
Hagerty is widely recognized for its deep integration into the collector car community. If you can provide proof of an ongoing restoration, they will increase your agreed value by 10% each quarter, up to $25,000.
- Standout Benefit: Highly flexible regarding use for club functions, tours, and exhibitions.
- Mileage: 7,500 miles.
Best for High-Value Vehicles: Chubb
For the most exclusive collections, Chubb provides top-tier service. They focus on using original equipment manufacturer (OEM) parts for repairs, ensuring your vehicle maintains its historical integrity.
- Standout Benefit: There is no mileage limit for hobby use, making it ideal for avid collectors who drive their vehicles frequently to shows.
- Mileage: Unlimited for hobby use.
Understanding Coverage and Costs
Is Classic Car Insurance Cheaper?
Yes. Because these vehicles are driven significantly less than daily commuters, classic car insurance is typically 40% to 50% cheaper than a standard policy. On average, you can expect to pay between $200 and $600 annually, depending on your vehicle’s value and your driving record.
What Is Agreed-Value Insurance?
This is the cornerstone of collector vehicle protection. Unlike standard insurance that depreciates your vehicle’s worth over time, agreed-value insurance means you and the insurer agree on the vehicle’s worth before a policy is signed. If the car is totaled or stolen, you receive the full amount you agreed upon, not a depreciated “actual cash value.”
How to Save on Your Premium
While these policies are already cost-effective, you can maximize your savings by:
- Bundling: Insuring your classic car and your primary vehicle with the same provider often triggers multi-policy discounts.
- Maintaining a Clean Record: A history free of at-fault accidents is the best way to keep premiums low.
- Joining Clubs: Many insurers offer specific discounts for members of recognized car clubs and enthusiast associations.
Comparison of Mileage Limits
| Company | Annual Mileage Allowance |
|---|---|
| Safeco | 5,000 – 10,000 miles |
| American Collectors | 7,500 miles + occasional usage |
| Hagerty | 7,500 miles |
| Grundy | Unlimited |
| Chubb | Unlimited (Hobby use) |
| American Modern | 1,000 – Unlimited |
Conclusion
Finding the right insurance for your classic car is about balancing your driving habits with the level of protection your investment requires. Whether you need the flexible restoration coverage of American Modern or the unlimited mileage of Grundy, there is a specialized provider suited to your specific needs. Before choosing, always confirm the storage requirements, as most carriers mandate that the vehicle be kept in a locked garage to qualify for these favorable rates.
Disclaimer: CNBC Select creates content independently of our commercial team. We may earn a commission from affiliate partners, but this does not influence our recommendations.
References
- Baily Insurance Agency. (n.d.). Classic Car Insurance Costs. Retrieved from https://bailyagency.com/blog/classic-car-insurance-costs/
- Insurance Information Institute. (n.d.). Insuring Your Classic Car. Retrieved from https://www.iii.org/article/insuring-your-classic-car/