Classic Car Insurance: Why Regular Auto Insurance Doesn’t Work (2025)
My uncle has a 1969 Camaro SS. Spent years restoring it. Worth probably $75,000 now. He had it insured on his regular auto policy for years. Then someone backed into it at a car show and did about $8,000 in damage.
His regular insurance wanted to pay based on “actual cash value.” Their calculation? Maybe $35,000 for a 55-year-old Chevy. He argued. They argued. It was a mess. Eventually settled but he was furious and felt cheated.
Now he has actual classic car insurance with agreed value coverage coverage. If that car is totaled, he gets $75,000. Period. That’s what he and the insurer agreed it’s worth. No depreciation arguments. No “it’s just an old car” nonsense from adjusters who don’t understand collector values.
Classic car insurance exists because regular auto insurance doesn’t work for vehicles that APPRECIATE instead of depreciate.
Why regular insurance doesn’t work
Normal auto insurance is built around depreciation. Your car loses value every year. A 10-year-old car is worth less than when you bought it. Insurance pays “actual cash value”—what the car is worth NOW, not what you paid or what it would cost to replace.
Classic cars work backwards. That 1969 Camaro isn’t worth less than in 1969—it’s worth way MORE. A fully restored classic can be worth 5-10x what a “new” version cost originally. Regular insurance doesn’t account for this. They see “old car” and want to pay “old car” money.
Also regular insurance assumes you drive the car daily. That affects risk calculations. Classic cars usually sit in garages and come out for shows and weekend drives. Different risk profile.
How classic car insurance works
Agreed value coverage. You and the insurer agree upfront what the car is worth. Usually requires appraisal or documentation. If the car is totaled, you get that agreed amount. No depreciation. No arguments. No lowball offers.
Specialty coverage for specialty cars. Policies understand that original parts matter, that restoration quality matters, that these aren’t just transportation—they’re investments and passions.
Flexible usage. Classic policies understand you’re not commuting. Many have mileage limits but also understand you’re going to car shows, pleasure drives, maybe the occasional parade. Some cover car show travel specifically.
Often cheaper than you’d expect. Because classic cars are driven less and stored carefully, they’re actually lower risk in some ways. Premiums can be surprisingly reasonable for the coverage amount.
What qualifies as classic
Varies by insurer but generally:
Age—usually 15-25+ years old minimum. Some insurers have specific cutoffs.
Limited use—not a daily driver. Most policies cap annual mileage at 2,500-5,000 miles.
Proper storage—garaged, not parked on the street.
You have another car—most classic policies require you have a regular daily driver too.
Some insurers also cover modified vehicles, hot rods, kit cars, replicas—not just original classics.
Where to get it
Hagerty is the big name—probably the largest classic car insurer. Also Grundy, American Collectors, Heacock Classic, and others. Some regular insurers have classic car programs but the specialty companies usually have better understanding of collector car needs.
Get quotes from multiple sources. Coverage details and prices vary. Some are better for certain types of vehicles.
What it costs
Often surprisingly cheap for the value covered. My uncle pays about $600/year to insure a $75,000 car. That’s less than 1% of the value. His regular car with standard insurance costs more to insure even though it’s worth way less.
Low mileage and garage storage keep risk low which keeps premiums low.
What to watch out for
Mileage limits—if you want to actually drive your classic regularly, some policies are too restrictive.
Usage restrictions—some policies are very specific about what driving is allowed.
Daily driver requirement—most require you have another insured vehicle for regular transportation.
Appraisal requirements—you might need professional appraisal to establish agreed value. Good to do anyway for documentation purposes.
Modification coverage—if your car is modified, make sure the policy covers that. Some are restoration-focused and don’t handle custom builds well.
Uncle’s car now
Properly insured with agreed value coverage. If someone backs into it at another car show—which honestly in the classic car world happens more than you’d think—he knows exactly what he’s getting. No fighting with adjusters. No depreciation arguments. Agreed value, done.
Comprehensive the chicken just discovered her reflection in my car’s hubcap and is having a whole moment out there—but classic cars deserve classic coverage. Regular insurance will screw you on value. Agreed value coverage is the way.
