How to Insure a Classic or Collector Vehicle

Last Updated on December 27, 2025

If you own a classic or collector vehicle, you probably see it as more than transportation. It’s a hobby, a passion project, and often a serious investment. Protecting that investment includes proper maintenance, secure storage, and buying the right insurance policy for how the car is actually used and valued.

Below is a practical guide to insuring a classic or collector vehicle—what makes these policies different, what coverage to buy, how agreed value works, where to shop, and what to avoid so you don’t end up underinsured.

Key Takeaways

• Standard auto insurance often pays claims using Actual Cash Value (ACV), which may undervalue a classic or collector vehicle with appreciation or restoration work.
• Classic/collector policies commonly use agreed value, where you and the insurer set the vehicle’s value upfront for more predictable total-loss payouts.
• Eligibility typically depends on limited use, secure storage (often an enclosed garage), and having another daily-use vehicle.
• To insure a collector car correctly, set a realistic agreed value, keep photos/receipts, and review the policy periodically as the market or the vehicle changes.

Is a Standard Auto Policy Enough for a Classic Car?

Sometimes, but it’s often not ideal. A standard car insurance policy typically settles total losses based on Actual Cash Value (ACV), which is based on depreciation, mileage, condition, and local market pricing for similar vehicles.

That approach can make sense for everyday vehicles that generally depreciate over time. But collector cars don’t always follow normal depreciation patterns. Some appreciate, some hold value, and many have expensive restorations or rare parts that aren’t reflected in typical “book value.”

This is why classic/collector insurance often uses agreed value (also called guaranteed value by some insurers). You and the insurer agree upfront on what the vehicle is worth. If the car is totaled in a covered loss, the payout is based on that agreed amount (minus any deductible), instead of a depreciation-based calculation.

What Counts as a “Classic” or “Collector” Vehicle?

There isn’t one universal definition. Your state DMV may have a legal definition for “classic,” “antique,” or “historic” plates, while insurance companies use their own eligibility rules for classic/collector policies.

Two enthusiast organizations often referenced in the hobby have their own definitions as well. The Antique Automobile Club of America (AACA) generally focuses on vehicles 25 years and older, while the Classic Car Club of America (CCCA) maintains a list of “Full Classics” that is more specific by make/model and era.

From an insurance standpoint, many classic/collector policies focus less on age and more on how the vehicle is used and stored. A 20-year-old vehicle may qualify if it’s well maintained, not used as a daily driver, and meets storage and mileage guidelines.

Eligibility Rules You’ll Commonly See

Every insurer is different, but these are common requirements for classic/collector policies:

• Limited use: The car is driven occasionally (not daily commuting), often with an annual mileage cap.
• Secure storage: Many insurers want the vehicle stored in an enclosed garage or locked facility. Parking in a garage can matter in general—see whether car insurance is cheaper when you park in a garage.
• Primary vehicle: You typically need access to another insured vehicle for daily transportation.
• Good driving record: Some carriers require clean or relatively clean records for all drivers in the household.
• Condition standards: The car may need to be well maintained, restored, or in original/good condition (project cars may require specialized programs).

How Much Does Classic Car Insurance Cost?

Classic car insurance is often less expensive than standard insurance for comparable liability limits because these vehicles are typically driven less and stored more securely. That said, pricing still depends on the vehicle’s agreed value, your location, your driving history, the coverage you choose, and how you store and use the car.

A helpful way to think about cost is: the more valuable the car and the more you use it, the more you’ll pay. If you have a high-value vehicle, drive it long distances, attend events frequently, or want specialized parts/restoration coverage, expect premiums to rise accordingly.

What Coverage Should You Buy for a Classic or Collector Vehicle?

Collector policies often come in 6- or 12-month terms and can include many of the same core coverages as standard auto insurance. The difference is how the vehicle’s value is handled and what specialty protections are available.

Common coverage components include:

• Liability coverage (required in most states if you drive on public roads)
• Collision coverage (damage from a crash)
• Comprehensive coverage (theft, fire, weather, vandalism, animal damage, etc.)

Then, consider collector-focused add-ons that can matter a lot for older vehicles and show cars:

• Roadside assistance (towing, jump starts, lockout, etc.)
• Spare parts coverage (rare parts, extra tires/wheels, hard-to-find components)
• Trip interruption or travel coverage (food/lodging if you break down far from home—often paired with rental reimbursement coverage)
• Car show and event coverage (varies by insurer; may address certain event-related risks)

How to Set the Right Agreed Value

The agreed value should reflect what it would reasonably cost to replace your vehicle in today’s market (or to replace it with a comparable example). Insurers may accept a valuation tool, recent comparable sales, receipts for restoration work, and/or an appraisal depending on the vehicle and value.

To support your agreed value, gather documentation like:

• Photos of the exterior, interior, engine bay, and VIN/serial numbers
• Receipts for restoration, upgrades, paint/body work, and major maintenance
• Comparable listings or valuation tool results (for example, Hagerty’s valuation tools: https://www.hagerty.com/valuation-tools/)
• A professional appraisal for higher-value vehicles or custom builds

Revisit agreed value periodically. The collector market changes, and major restoration work can materially increase your vehicle’s value.

Where to Buy Classic and Collector Car Insurance

You can buy collector coverage through specialty carriers or, in some cases, through major insurers that offer classic vehicle programs. Well-known specialty options include Hagerty, Grundy, and high-end carriers like Chubb.

If you want a curated starting point, see our list of the best collector car insurance companies.

If you already have home or auto insurance elsewhere, ask about bundling. Some insurers will let you combine multiple policies for a discount—here’s how bundling auto and homeowners insurance can reduce costs.

Mistakes to Avoid When Insuring a Collector Vehicle

• Assuming ACV is “good enough” for a car with rising market value or expensive restoration work.
• Understating value to save premium, then being disappointed at claim time.
• Ignoring usage restrictions (some policies limit commuting, business use, or certain types of trips).
• Not documenting upgrades and restoration with photos and receipts.
• Forgetting to update the policy after major work, modifications, or changes in storage location.

FAQs on Insuring a Classic or Collector Vehicle

Bottom Line

Classic and collector vehicles deserve insurance that matches how they’re valued and used. If your car qualifies, a collector policy can provide agreed value protection and specialized coverage that a standard auto policy may not. The key is setting a realistic agreed value, understanding the usage and storage rules, and keeping your documentation current.