The Best Classic and Collector Car Insurance Companies

Car buyers are told that the value of a car significantly drops when it's driven it off the lot. While that is true, one car category actually appreciates in value — classic and collector cars. Because of this, classic car insurance companies must go above and beyond standard car insurance. But how do you know if you have a classic car? Typically, a classic car must be at least 25 years old and, according to the Classic Car Club of America, a fine or distinctive vehicle.

Hagerty was chosen as the best auto insurance for classic cars because the company offers the widest breadth of coverage options. It provides insurance for classic cars and trucks, including vintage motorcycles, antique tractors, boats, historic military vehicles and so much more.

Hagerty offers guaranteed value coverage, which means that you will receive your car's total insured value with no depreciation if you have a total loss. They also offer a roadside assistance plan specifically designed for classic cars, with services such as flatbed towing with soft straps to protect your vehicle.

Because classic cars are so rarely driven, Hagerty auto policies are priced accordingly, which includes charging up to 36% less than insurance for a car that is driven daily. Unlike some classic car insurers, Hagerty has no fixed mileage limit, meaning there are no restrictions on how or when you drive your classic car.

MoneyGeek has done extensive research to determine which companies have the best classic car insurance on the market. However, keep in mind that the best classic car insurance for you might not be the same as the best car insurance for someone else. The type of classic car you have and how often you drive it are just two of the many factors that you will need to consider when choosing a policy for your classic car.

Rates can vary from company to company by hundreds of dollars per year, even for the same make and model vehicle. Choosing a affordable car insurance policy can save you thousands of dollars throughout your life. Take a look at the chart below for examples of how your premium can change from company to company.

Because classic, collector and antique cars are so unique, every type of vehicle may not be covered by every classic car insurance company. Some companies only insure antique or classic vehicles, while others will insure those along with brand new luxury vehicles. There are some companies that require specific insurance coverages and others that may offer monthly car insurance.

You can explore the expandable menu below to see which companies handle each vehicle type. For example, if you own a hot rod, you'll want to expand the "Modified, Replica and Rods" section by clicking on the down arrow on the right-hand side. Then you'll see the companies MoneyGeek found that can insure your one-of-a-kind ride.

It is still essential to do your own research, so you can work with the right company to insure your specific vehicle.

Traditional car insurance is designed for cars that are used daily. While classic car coverage offers the same basic benefits (liability, comprehensive, collision, etc.), it is designed to protect an asset that appreciates over time as opposed to a vehicle that is solely a form of transportation. Classic cars need exclusive insurance coverage because the difference in the value of a classic car and a standard car is so drastically different.

While insurance laws and requirements vary by state, classic car insurance is typically required for many of the same reasons traditional car insurance is required. Liability coverage is necessary to pay for any damages you may cause while driving, where comprehensive and collision coverages are often required by your lender to pay for damages to your vehicle until you have paid off your loans.

To qualify for classic car insurance, you typically need to meet the following requirements:

• Your classic car cannot be your daily-use vehicle.
• Your classic car must be defined as a classic car (25 years or older, etc.).
• Classic cars must be stored securely, typically in an enclosed garage or other indoor location.
• Racing is not allowed and, if it is discovered that damage was done to an insured car while racing, claims may be denied.
• Drivers typically need to have a clean driving record, with no accidents or violations within three years.
• All household members with a valid driver’s license must have their own daily use vehicle with active insurance separate from the classic car.

While it may be tempting not to insure a vehicle undergoing restoration, it could be financially disastrous to leave your classic car uninsured while it is being restored. A vehicle that isn’t moving might not seem like it needs liability coverage, but if it caused a fire or fell onto someone, you could be responsible for tens of thousands of dollars or more in damages. Many classic car insurance companies also offer special coverage for cars that are being restored, providing coverage for tools, towing, parts and more.

Like any insurance policy, there are different levels and types of coverage available for classic cars. Comprehensive and collision coverage is typically included in a classic car policy. Still, people who have significant financial assets or who live in states with low liability requirements may want to increase their liability levels. In contrast, others may want to add roadside assistance or other additional coverages to their policies. A basic policy might only cover liability, comprehensive and collision, while higher coverage levels might include:

• Medical payments: Medical payment coverage provides reimbursement for part or all of your medical bills in the event of an accident.
• Uninsured/Underinsured motorist coverage: Uninsured motorist coverage covers you at the same levels as your liability coverage if you are in an accident where an uninsured driver was at fault.
• Traveling collector coverage: Traveling collector insurance covers losses while on the road in your classic car, including trip interruption coverage and coverage for parts.
• Spare parts coverage: Spare parts coverage protects the classic car items that stay in your garage.
• Evacuation expense coverage: Evacuation expense coverage pays when you need to evacuate your classic car in the event of an emergency, such as an impending hurricane or wildfire.
• Cherished salvage coverage: Cherished salvage coverage allows you to get the full value of your car and still get the salvaged vehicle back in the event of a total loss.

Just like insurance companies that offer standard car insurance, classic car insurance companies all have unique products. Each provider offers different services and prices, and they also have different requirements to insure a classic car.

American Collectors

American Family

American Modern

American National

Condon Skelly

Farmers

Grundy

Hagerty

Heacock

J.C. Taylor

Leland-West

Safeco

State Farm

Classic car insurance is a necessity for anyone whose vehicle appreciates over time. Anyone who owns a classic car, collector car or other specialized vehicle needs a classic car policy. The coverage you need will depend on your unique situation, including:

• What type of classic car you have.
• Whether or not your car is under restoration.
• The number of classic cars you own.
• The number of miles you drive in a given year.

Getting a personalized quote for your vehicle is the best way to guarantee you are getting the best coverage and rates available for your prized, one-of-a-kind vehicle.

Rachael Brennan is a professional freelance writer. She has been published on a number of websites, including Adweek, Glamour and Cracked. She has also worked in the insurance industry for more than a decade, earning her P&C license in all 50 states and her Life, Health and AD&D license in New York and the surrounding states.