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Best Classic Car Insurance Companies in 2022

The right provider for your pride and joy will help you focus on the open road ahead.

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BYRyan Tronier/ LAST UPDATED ON July 26, 2022
Best Classic Car Insurance Companies in 2022

Your classic auto isn’t simply a car. And the insurance that protects it shouldn’t just be a standard policy either.  Whether you’re meticulously restoring a Porsche 911 or showing off your Shelby Cobra on a Friday night, it’s important to find an insurance provider that loves cars as much as you do. Unlike your everyday ride, classic cars require speciality policies and expertise that most of the larger carriers aren’t equipped to provide. If you’re looking for the best classic car insurance for your souped-up hot rod, we’ve rounded up the nation’s leading underwriters. 
This article may include references to products or services where The Drive has an affiliate relationship with the providing company. The Drive and its partners may earn a commission if you purchase a product through one of our links. Read more.

Featured Products/Vendors

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CarShield — USA’s #1 Auto Protection Provider

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Best Overall: American Modern

American Modern will insure just about anything with wheels. The list of vehicles eligible for its Collector Car Insurance includes muscle cars, classic cars, antiques, exotics, customs, and replicas, to name a few. It will even insure vehicles of historic importance such as fire engines, tractors, and retired military vehicles.

Standard policies allow usage for car shows, parades, and occasional pleasure drives. However, an optional policy will cover those who use their classic cars for the daily grind — just be aware that you’ll swap the agreed value for the stated value, which provides less protection in the event of an accident.

One big drawback is that you’ll have to speak with an agent to get specific coverage details for your collectible car. Furthermore, American Modern doesn’t offer online quotes. So those who like to conduct business digitally may want to consider another provider.

There may also be some customer service issues with this carrier. The National Association of Insurance Commissioners (NAIC) ranks American Modern as having a higher than average number of complaints. However, its A+ rating with the Better Business Bureau (BBB) should give potential customers some peace of mind.

Pros

  • “Agreed value” total loss statement
  • Deductibles from $0 to $10,000
  • Available in all 50 states

Cons

  • No online quotes
  • Limited information on website

Takeaway

  • Classic car owners searching for a flexible, all-purpose insurer may find what they’re looking for with American Modern. This prestige carrier is well regarded for insuring a wide variety of collectible cars.

Best for Frequent Drivers: SafeCo

SafeCo might be a good choice for those who want to drive their pride and joy more frequently. Its regular use coverage allows up to 10,000 miles per year, which is the equivalent of about 27 miles a day. What’s more, you’ll still enjoy the benefit of SafeCo’s agreed value coverage with this higher mileage limit.

SafeCo also offers several discounts, which is less common for classic car insurers. Policyholders will save money when they restrict their annual mileage to 5,000 miles or less, take an accident prevention course, insure a car collection, and bundle policies with regular auto, motorcycle, boat, RV, or homeowners insurance.

Still, SafeCo does have disadvantages. This carrier only underwrites policies for modern classic cars that are less than 10 years old, classic cars that are over 10 years old, and antiques that are at least 25 years old. 

Moreover, drivers in Delaware, Hawaii, New Jersey, Rhode Island, and the District of Columbia will have to look elsewhere for coverage. As will owners of vintage vehicles that are not classed as “automobiles” or “street vehicles,” which includes kit cars, tractors, military vehicles, and restoration projects that are less than 50 percent complete.

In addition, SafeCo has more complaints logged with the NAIC than one would like to see. Indeed, this is a sentiment that is echoed by Trustpilot reviews that highlight difficulty during the claims process. Still, the insurer does hold an A+ rating with the BBB, and many customers find SafeCo meets their coverage needs. 

Pros

  • Agreed value coverage
  • Diminishing deductible of $100 per year
  • Multiple money-saving discounts

Cons

  • Strict vehicle age requirements
  • Coverage limited to select types of classic cars
  • Not available in all 50 states

Takeaway

  • Classic car owners who want to drive their vintage rides on a regular basis have a lot to like about SafeCo Insurance. In addition to higher mileage limits, this underwriter offers valuable coverage and multiple policy discounts.

Best Major Provider: State Farm

State Farm doesn’t typically help classic car owners save money on insurance through discounts. Instead, because it is a major insurance company, you can save quite a bit of money by bundling all of your policies under one roof. Generally speaking, the money saved by bundling will often far exceed savings from policy discounts. 

State Farm’s rates are regarded as competitive, too. Along with the more common coverages for collision, comprehensive, and liability, the carrier also provides emergency roadside assistance, usage-based pricing, agreed value pricing, and spare parts coverage up to $500 per claim.

However, owners who prefer a wholly online experience may find State Farm’s in-person service old fashioned. But others may enjoy working with the carrier’s nationwide agent network — it really depends on how you like to do business. Still, you’ll need to speak with an agent for a quote as well as specific details about your policy.

State Farm has an unusually high number of complaints filed with the NAIC, but this could be partly due to the sheer volume of policies it underwrites. On the bright side, State Farm regularly places in the top three positions in J.D. Power’s Auto Insurance Customer Satisfaction Survey, and it keeps an A rating with the Better Business Bureau.

Pros

  • Agreed value coverage
  • Up to $500 coverage for spare parts
  • Available in all 50 states

Cons

  • Must work with agent for policy details
  • No online quotes

Takeaway

  • Policyholders who prioritize bundling all of their insurance needs with a single provider, should know about State Farm’s classic car coverage. In addition to offering every type of insurance solution imaginable, you’ll also get the security of working with one of the largest providers in the country.

Best for Car Collections: Grundy

Grundy could be a good choice for enthusiasts who need to insure an entire collection of classic cars. This provider has a line of policies just for collections valued between $500,000 to $5 million or more. Just like with its individual classic auto coverage, you can insure your entire collection at an agreed-upon value. What’s more, Grundy will pay 150 percent above that agreed value in the case of a total loss claim. You can even protect against reduced value of your collection due to repairs or even theft with its Diminution of Value insurance.

However, those who want to use their collectible cars more frequently may find Grundy’s definition of “unlimited mileage” slightly deceptive. While the carrier claims to offer unlimited miles, the fine print shows that this benefit only applies to “pleasure driving and in collector car-oriented activities,” meaning car shows, parades, and exhibitions. 

Not only does Grundy not offer options for daily drivers, it requires the policyholder and every licensed member of their household to provide proof of a “modern car for everyday use.” Still, for those with a multi-million-dollar car collection, this requirement is likely not a deal breaker.

Grundy Insurance is accredited with the Better Business Bureau, where it maintains an A+ rating. The provider has no complaints filed with the NAIC, and it’s earned 4.5 out of 5 stars on Trustpilot.

Pros

  • Agreed value insurance for car collections
  • 75 years of classic car insurance expertise
  • Available worldwide

Cons

  • Strict garage requirements
  • Requires drivers to have another car for everyday use

Takeaway

  • If the cost of insuring multiple classic cars is keeping you up at night, you may find relief with Grundy. This trusted name in the insurance industry is well known as being among the top underwriters for car collections.

Best for Restorations: Hagerty

Hagerty may be the ideal provider for those who restore classic cars. Many other providers will only insure restoration projects that are at least 50 percent complete, but Hagerty’s Vehicle Under Construction policy will cover any “vehicles that are being actively restored.” 

All restoration policies come standard with $750 worth of coverage for automotive tools and automatic value increases of 10 percent each quarter. This is ideal for restorations that will appreciate in value upon completion.

The provider’s concierge service will also help you find replacement parts for your restoration projects.

Hagerty also provides the protections that you’d expect as well as options for 24/7 roadside assistance, spare parts insurance, and cherished salvage coverage that allows you to keep your salvaged automobile in the event of a total loss.

Additionally, this is one of the few carriers to offer evacuation expenses in the event of storms, wildfires, or a declared state of emergency. You even have the option to insure your automobilia such as vintage gas pumps, station displays, hood ornaments, and so on. 

Hagerty has no complaints logged with the NAIC, and it features an A+ rating with the BBB. The underwriter also boasts 4.2 out of five stars on Trustpilot, where 87 percent of its thousands of reviews give it an “excellent” rating.

Pros

  • Insures any active restoration projects
  • Numerous perks for collectors and mechanics
  • Available in all 50 states

Cons

  • No coverage for daily driving
  • Strict use limitations
  • Require drivers to have another car for everyday use

Takeaway

  • Gearheads who are chasing classic car insurance for their restoration projects may find a friend in Hagerty. This boutique provider blends expertise, competitive pricing, and a dedicated team to help policyholders find replacement parts. 

Average Cost of Insurance for Classic Cars

The average cost of classic car insurance is 34 to 50 percent less than a standard auto policy, based on estimates from two popular providers. Hagerty reduces its prices, on average, by 34 percent for classic cars, while Grundy claims to discount its policies by upwards of 50 percent.

In fact, one insurer ballparks the average cost of its classic car insurance to be between $200 to $600 per year, depending on the types of coverages you select. 

Classic cars traditionally spend less time on the road, which means that they’re lower risk and cheaper to insure. However, keep in mind that the rates you’ll pay will be based on a number of variables specific to the type of historic vehicle that you’re insuring and your age and driving history. 

Further, your state of residence is also a factor in determining your coverage costs. Each state has its own insurance laws, which means price points will vary widely depending on where you live. The best way to find out the average cost of classic car insurance in your area is to calculate rate quotes from at least three providers.

How to Save on Classic Car Insurance

The best way to save on classic car insurance is to comparison shop. Requesting rate quotes from several insurance companies will always yield a lower price. Just be sure to gather quotes for similar coverage, so that your side-by-side comparisons are consistent.

Classic car owners can also save on insurance by bundling all of their policies with one provider — homeowners insurance, regular auto, life insurance, and so on. Some of the largest insurance providers in the nation actually contract their classic car coverage to the boutique carriers on this list.

As an example, Progressive partners with Hagerty and Geico with American Modern. This allows policyholders to bring all of their coverage needs under one roof to save money on insurance.

Additionally, you can save money on classic car insurance by:

  • Opting for lower mileage restrictions (driving less)
  • Opting for a higher deductible
  • Completing a driver safety course
  • Storing your vehicle in a secured space
  • Joining a classic car club

Unlike conventional auto insurance, discounts for classic cars are not standard issue. Discount availability and eligibility will vary by provider.

Essential Cost Variables for Insurance

As with everything, there are a host of variables that will affect the cost of your insurance as no two vehicles or drivers are exactly alike. With that in mind, here are the variables that’ll change the cost of your insurance. 

Driver Age, Experience, and Record

Standard auto insurance policies often take into account everything from a driver’s gender to their credit score when it comes to pricing premiums. 

While some providers still may use these types of variables to determine cost, when it comes to classic car insurance — the most significant personal traits are, by far, a driver’s age, experience, and driving record.

Many providers have age requirements, and they won’t extend classic car insurance to young drivers. Similarly, those with less-than-desirable driving histories may find it difficult to get coverage at all.

Use

How you use your collectible car will impact your premiums. Because they are driven infrequently, classic cars stored in private collections or museums carry a lower risk. But those that are driven to car shows or taken out for the occasional joy ride have a higher risk and will cost more to insure.

Most insurance underwriters offer various annual mileage limits. Policyholders agree to adhere to these limits in exchange for higher or lower insurance premiums.

As an example, SafeCo has two annual mileage tiers: regular use and restricted use. SafeCo’s regular use policy is more expensive than its restricted one, but it allows an owner to drive up to 10,000 miles each year, instead of just 5,000 miles.  

Understanding your mileage needs will help ensure that you’re not overpaying for car insurance. 

Storage

If you’re thinking of parking your 1971 Pontiac Firebird in your driveway, you may want to reconsider. 

Many insurance companies require collectible car owners to store their classic autos in either a private building, dedicated storage facility, or a secured residential garage. And — you guessed it — the type of storage can affect your premiums.

Because theft and vandalism are among the biggest risk factors to insure a classic car against, security is a big concern for most providers. Having the right type of storage for yours can help keep insurance costs down.

Vehicle Age

Not only is the age of your hot rod a cost variable, it will also determine whether you’ll be eligible for classic car insurance in the first place.

Each provider has eligibility guidelines for their collectible car insurance. Some, like American Modern, have fairly flexible requirements, while others have stricter rules as to which cars qualify for coverage.

State Farm has three main categories, for example, and each will carry different price points:

  • Antique automobile: A motor vehicle 25 years old or older that has historical interest.
  • Classic automobile: A motor vehicle 10 to 24 years old that has historical interest.
  • Antique automobile: A classic motor vehicle 25 years or older.

Type of Vehicle

The term “classic car” is often a catchall phrase. Automobile enthusiasts collect a wide variety of “vehicles of historic interest,” and each insurance company has its own categories and definitions for what they consider to be a classic or collectible car.

In addition to its category, the type of car and its value will also be a significant cost variable for your insurance premium. 

Common types of historic automobiles that are covered by classic car insurance include:

  • Antiques
  • Classic cars
  • Customs
  • Exotics
  • Kits
  • Military vehicles
  • Modern classics
  • Muscle cars
  • Race cars
  • Replicas
  • Retired vehicles (fire engines, tractors, police cars)
  • Restorations

Type of Coverage

The type of classic car coverage you carry — and the deductibles and policy limits — will also affect your insurance rate. 

Classic car insurance generally offers similar coverage to personal auto insurance.

  • Collision: Covers damages due to accidents, regardless of fault.
  • Comprehensive: Covers non-accident damage from events like fire, theft, or vandalism.
  • Liability: Covers damages to another party’s property and/or medical when you’re at fault.
  • Uninsured/underinsured motorists: Covers damages from another party that has inadequate insurance protection

Additionally, your provider may offer optional coverage that is specific to a classic car policy. These include:

  • Agreed value: Coverage that pays out a vehicle value that you and your underwriter agree upon in the event of a total loss claim. This is in contrast to stated value, which is the actual cash value at the time of loss.
  • Automobilia: Coverage for your valuable automobile collectibles, including vintage gas pumps, license plates, hood ornaments, and more.
  • Cherished salvage: Ensures that you can keep your salvaged vehicle in the event of a total loss claim.
  • Spare parts and automotive tools: Covers your spare parts and tools used to restore and maintain your historic cars.
  • Trailer: Insures the hauling trailer for your classic car.

FAQs

You’ve got questions. The Drive has answers.

Q. What is classic car insurance?

A. Classic car insurance provides coverage to collectible vehicles with a blend of collision, comprehensive, property damage, bodily injury, and other specialty insurances. In this way, classic car insurance is similar to standard auto insurance.
However, because classic cars are often worth more than their depreciated value, they are valued quite differently from everyday cars and trucks. Classic car insurers will normally insure antique and restored vehicles using a method called “agreed value.” 
With agreed value policies, the owner and insurer agree on a classic car’s value — this is the maximum amount the provider will pay against a claim for a covered loss. In some cases, classic car insurers will pay over the agreed value in the event of a total loss. 

Q. Is it cheaper to insure a classic car?

A. Yes, it is generally cheaper to insure a classic car than it is to carry a standard insurance policy for a car or truck. In fact, our top pick for restored classic cars, Hagerty, says it discounts classic car policies “34 percent lower on average than daily driver insurance.”
The affordability of classic car insurance is largely due to historic vehicles being driven less frequently as well as policy restrictions around both usage and storage. Furthermore, unlike an everyday household vehicle, classic cars often increase in value over time. 
Still, the rate you’ll pay for classic car coverage will be decided by several factors, including agreed value and vehicle age, to name a few. So gather quotes from several providers to ensure you’re getting the lowest price and best coverage for your needs.

Q. How many miles can you drive with classic car insurance?

A. While limits will vary by provider, you can often drive between 5,000 to 10,000 miles each year with a classic car insurance policy. Yet, some leading underwriters allow policyholders higher mileage limits or even unlimited mileage.
Review the annual mileage limits of several providers before committing to a policy. If you’re a daily classic car driver, or if you desire flexibility, be sure to prioritize insurance companies that offer fewer driving restrictions.

Q. Can you insure a classic car as a daily driver?

A. Yes, you can insure a classic car as a daily driver. However, daily drivers still face mileage limits. 
For example, our top pick for frequent drivers, SafeCo, offers two mileage options: restricted use (5,000-mile annual limit) and regular use (10,000-mile annual limit). Safeco’s regular use policy allows owners to drive their classic cars 27 miles each day. In practice, 10,000 miles each year should be enough to travel to car shows or take a spin around the neighborhood.
Some insurers do offer options for unlimited mileage, but these policies often do not provide the same standard of coverage that mileage limits make available.

Our Methodology

To choose the best companies and products for this list, the team at The Drive looked at a large number of financial products from various providers. We focused on cost, product features and options, ease of use, customer service, and past customer ratings as the most important factors in our ratings.

EXTENDED WARRANTY COVERAGE MORE … FOR LESS

Save $350 on an Endurance warranty plan with coupon code: DRIVE350

Going with a factory extended warranty is a good option for basic protection, but you can get more and save more with Endurance, ranked the top extended warranty provider by Consumer Advocates, Consumer Affairs, and Retirement Living.

Get a Free Quote

Save $350 with coupon code: DRIVE350

EXTENDED WARRANTY COVERAGE MORE … FOR LESS

CarShield — USA’s #1 Auto Protection Provider

CarShield pays claims directly to a US or Canadian ASE-Certified® repair facility of your choice. Our contracts have low or no deductibles to prevent stress to your wallet at a critical time. Never worry about being stranded somewhere after a breakdown. All of our vehicle repair contracts include towing services to transport you and your vehicle to a safe repair facility.

EXTENDED WARRANTY COVERAGE MORE … FOR LESS

Nationwide coverage for cars new and old

CARCHEX has something for everyone. Have an old car? No problem. Live in California? Not an issue. CARCHEX 's plethora of warranty plans includes options for cars up to twenty years old with up to 250,000 miles, regardless of any existing or expired warranties. Click below or call 1-877-207-3304 for a free quote.

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