1. Does Insurance of Classic Cars Cost More?

1. Does Insurance of Classic Cars Cost More?
  1. Does Insurance of Classic Cars Cost More?

There are a lot of myths about classic cars. It is a common belief that insurance of classic cars will cost way more than regular car insurance.  Well , this statement might be true in some cases but it isn’t always right.

In this article, we’ll cover all the basic questions posed about the insurance of classic cars.


What is a Classic Car According to Insurance Companies?

With regular car insurance, it is easy, you go in and buy a regular insurance plan. But with classic cars things are different. As to who’ll determine that it is a classic car or not. Most of the insurance companies will value the vintage nature and antique value of your car, but not all. Some companies have well-devised criteria to determine whether your car is classic or not. These criteria might be:


Age of the car: The first and foremost factor that’ll determine the antiquity of your car will be its age. If your car is mighty old and by this, we don’t mean like it’s 5 or 10 years old. It must be at least 25 years old or more. Only then your car will be eligible for classic car insurance.

Is it for primary use: If you own a classic car, then obviously you won’t use it for a regular commute. You must have a separate car for your daily use. Insurance companies use this factor as well to determine whether your car is a classic one or not.

why the insurance of classic cars can cost more

Driving record: This one is a normal point. As even with regular car insurance, companies ought to check the driving record of the driver. The driving patterns and habits of the driver are closely monitored to determine the premium rates and, in this case, it is also used to decide on the matter of awarding insurance policy.

Accidents frequency: The number of accidents that have taken place in the past 36 months is also a normal checkpoint even for regular car insurance. The classic car insurance companies ensure that whether this car has been in a lot of accidents. If yes, then the chances for denial of your request for classic car insurance are higher.

Does Insurance of Classic Cars Cost More

Subject to normal use: This is a very important point as insurance companies make sure that you are not using the subject for street racing or drag racing. These types of driving use can put your car at a higher risk of being totaled. So, if your car is subjected to this kind of usage, you might not get classic car insurance.

Storage of car: As a classic car is mostly going to be in your garage. So, storage conditions become very important. The insurance companies have to make sure that it is a safe and risk-free environment. Which is free from moisture, excess humidity, and water seepage. Only if your storage is safe, you can get classic car insurance.

Why Does Insurance of Classic Cars Cost More?

We’ll cover the rates of insurance for classic cars in more detail in the next section but we want to shed light on why the insurance of some classic cars can cost more. In some cases, the insurance premium of a classic car is reported to go as high as $100,000 per year.


The only reason for such mind-boggling rates of insurance for a classic car is its cost. If you’re going a buy a multi-million dollar car, let’s say a 1962 GTO Ferrari which costs around $48.4 million. Then it is only justified that car insurance will cost in 6 figures.

The astounding prices of classic cars can cause inflated insurance rates at times, otherwise, the insurance rates of classic cars aren’t that high.

classic cars

What is the Cost of Insurance for a Classic Car?

The cost of insurance for a classic car may vary between $550 and $600. In opposition to regular car insurance which can cost you in the neighborhood of $1000. The premium prices for insurance of classic cars are lower than regular car insurance. However, as pointed above these rates might not apply if you own a mighty expensive classic car.

So, if you pass the criteria of insurance companies by using your classic car for secondary usage, keeping its mileage down, avoiding accidents, maintain a pristine driving record, and store properly. Then you can get lower insurance rates for your classic car.

Should You Buy Classic Car Insurance?

Does Insurance of Classic Cars Cost More

Yes, you should buy insurance for your classic car. There are several reasons for this but despite the obvious reasons, there is one specific reason. It is the cost of insuring a classic car. Since it’ll cost you way lesser than regular car insurance, so it’ll only be a disaster if you don’t purchase insurance.

On the other hand, you obviously want to have something to fall back on a rainy day. Hence, you must act wisely and purchase a good insurance plan for your classic car.


caranddriver.com, bailyagency.com, valuepenguin.com, iii.org  



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