Classic vs. Standard Car Insurance [2024]
Are older cars cheaper to insure? Classic car insurance vs. regular is usually more affordable, averaging $50 a month, but insurance for antiques can be costlier. Our classic vs. standard car insurance review details the factors affecting rates, including how old and how rare your vehicle is and how frequently it's used.
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Joel Ohman
Certified Financial Planner
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...
Certified Financial Planner
UPDATED: Nov 24, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 24, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Are there differences when it comes to classic vs. standard car insurance? To answer simply, yes.
Classic car insurance is considered a specialty insurance product and, in general, classic cars tend to be more expensive to buy coverage for than regular car insurance policies. However, that is not always the case. Affordable classic car insurance can be found.
There is more to this than simply two different types of car insurance, though. There are many special factors to consider with classic car insurance and, while you can often purchase classic car insurance from the best auto insurance companies out there, there are several classic car insurance companies that specialize in car insurance for collectible vehicles.
If you have an antique car, you can expect to pay more for your car insurance than someone with a late-model car. There are plenty of differences, but the factors that most insurers will look at will be the age and rarity of your vehicle.
Looking to buy classic or antique car insurance? Is classic car insurance cheap? Is antique car insurance cheaper? Just enter your ZIP into our free quote tool to begin comparing classic or antique car insurance quotes. Read on to learn more about classic car insurance vs. regular auto insurance.
- There is more involved in insuring a classic car than a standard vehicle
- Classic cars are usually insured by agreed-upon value rather than the KBB.com classic cars value
- Consider specialty insurance for your classic car
How Classic Car Insurance Differs From Standard Car Insurance
Is it more expensive to insure classic cars? Or is classic car insurance cheaper than standard car insurance? How does classic car insurance work? How much is classic car insurance?
First, and probably most important to you, is the cost. Classic or antique vehicle insurance is often cheaper than regular car insurance because you are not driving the vehicle regularly, in most cases.
By allowing insurance companies to place restrictions on the amount you can drive the vehicle you can save significant amounts of money.
This is especially important to do if you only plan to drive the car for the occasional parade or show. In many cases, there is also no deductible with classic car insurance.
Another major difference between a classic car insurance policy and regular car insurance is the way the value of the vehicle is determined.
To illustrate this point, consider a car you purchased in 1974 for $1,400. Dealers may now offer $15,000 for that vehicle and some people have been quoted amounts as high as $21,000.
If the vehicle is totaled and you have classic car insurance you should expect to receive what the car is currently worth; however, if you insured that car with regular car insurance you will be lucky to get your original $1,400 back.
Take a look at the average annual classic car insurance rates by state to get an idea of what you might expect to pay.
Classic Car Insurance Monthly Rates by State & Coverage Level
| State | Minimum Coverage | Full Coverage |
|---|---|---|
| Alabama | $20 | $43 |
| Alaska | $27 | $51 |
| Arizona | $25 | $49 |
| Arkansas | $20 | $45 |
| California | $24 | $49 |
| Colorado | $26 | $49 |
| Connecticut | $33 | $58 |
| Delaware | $40 | $62 |
| District of Columbia | $31 | $67 |
| Florida | $43 | $63 |
| Georgia | $28 | $52 |
| Hawaii | $23 | $44 |
| Idaho | $17 | $34 |
| Illinois | $22 | $44 |
| Indiana | $19 | $38 |
| Iowa | $15 | $35 |
| Kansas | $18 | $43 |
| Kentucky | $26 | $47 |
| Louisiana | $39 | $70 |
| Maine | $17 | $35 |
| Maryland | $30 | $56 |
| Massachusetts | $30 | $56 |
| Michigan | $40 | $68 |
| Minnesota | $23 | $44 |
| Mississippi | $23 | $50 |
| Missouri | $21 | $44 |
| Montana | $19 | $43 |
| Nebraska | $18 | $42 |
| Nevada | $34 | $55 |
| New Hampshire | $20 | $41 |
| New Jersey | $43 | $69 |
| New Mexico | $24 | $47 |
| New York | $40 | $68 |
| North Carolina | $18 | $39 |
| North Dakota | $15 | $39 |
| Ohio | $20 | $39 |
| Oklahoma | $23 | $50 |
| Oregon | $29 | $45 |
| Pennsylvania | $25 | $49 |
| Rhode Island | $38 | $65 |
| South Carolina | $26 | $49 |
| South Dakota | $15 | $38 |
| Tennessee | $21 | $44 |
| Texas | $26 | $55 |
| Utah | $25 | $44 |
| Vermont | $17 | $38 |
| Virginia | $21 | $42 |
| Washington | $30 | $48 |
| West Virginia | $25 | $51 |
| Wisconsin | $19 | $37 |
| Wyoming | $16 | $42 |
| U.S. Average | $27 | $50 |
Full coverage classic car insurance costs about $50 a month. That’s much cheaper than standard car insurance.
But as you can see, rates can vary widely by state. In California, which has the highest number of collector cars, full coverage classic car insurance is $49 a month, while Florida antique car insurance — in the state with the second-most amount of collector cars — is $63 a month.
Finally, while regular car insurance generally insures your vehicle for the same amount for the duration of time you own the car, classic auto insurance may change.
Not only may the value of the car increase or decrease simply due to years passing, but, if you are restoring an antique car, you will need to adjust the amount you insure it for once you have finished the restoration.
Cars that have been restored can be worth significantly more than those in poor condition. Of course, depending on the car’s condition, your insurance premium will go up as your classic car increases in value. Collector cars are an investment you want to keep protected with the right auto insurance company.
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The Expense of Classic Car Insurance
You may think that, since a classic or antique car is used and driven less than a standard car, it will be cheaper to insure. This is not always the case.
Cars that are used only occasionally for fun are sometimes more expensive to insure.
A standard car insurance policy usually does not offer enough coverage to replace or repair a classic car. An antique, vintage, or classic car is often more expensive to fix, as the parts usually are harder to find and cost more.
How much does it cost to insure a classic car?
Specialty classic or antique car insurance offers the coverage needed to fully repair or replace the car, but it often comes with a higher price tag.
Another major reason it is often more expensive to insure a classic car is that the value of the vehicle is calculated differently. If you put a stack of cash and years of work into a vehicle that has the base model of an older car, you may not get any of that back with a standard insurance policy.
That’s why classic cars are generally insured with agreed-upon value, rather than the stated value. Agreed-upon value is what you and the insurer agree that the vehicle is worth and the amount your rates are based upon.
This video from Heacock Classic discusses the difference between agreed value and stated value.
This is pretty important because you don’t want to be out of a lot of money if anything ever happens to your classic car.
Read more:
- Agreed Value Car Insurance: Explained Simply
- Compare Best Car Insurance Companies That Offer Agreed Value
Why Antique Car Insurance Is More Expensive Than Standard Car Insurance
Collector cars can bring a lot of joy to drivers who want to preserve the integrity of their older vehicles. A lot goes into keeping collectible vehicles looking pristine. This includes regular upkeep and maintenance, as well as making sure that the vehicle is properly stored.
That being said, insurers will also look at your classic or antique car as an investment. The older your car happens to be, the harder it is going to be for the insurance company to find replacement parts or even an experienced mechanic should you have an accident.
The insurance company needs to consider the cost of parts when quoting you a premium.
Even if the car stays in the garage most of the time, if something happens while it’s parked, any sort of damage is going to require repair or replacement of some kind.
See our article Cheap Classic Car Insurance Without a Garage.
In addition, an antique car, if it is in pristine shape, has a higher value than a late-model vehicle. The insurance company does not consider the Kelley Blue Book value of the vehicle when quoting a price for your coverage. Instead, they consider its market value.
This is a different process than what they use for standard auto coverage. If you have a 2001 Ford Mustang, for example, your insurer will use the Blue Book to determine the value of your vehicle.
If you have a 1969 Ford Mustang and you have it registered as an antique, the market value will be considered instead. The key here is that your vehicle has to be registered as an antique; otherwise insures will use the Kelley Blue Book value of your car.
Read more: Compare Rally Car Insurance Rates
The Future of Your Antique Car Insurance Rates
Will antique car insurance rates decrease over time? Unlike traditional coverage, antique car insurance doesn’t get cheaper, it gets more expensive. The reason for this is that the older your antique car gets, the more value that it has. Hence the higher rates.
As with any auto policy, your rates won’t change until your policy expires. For this reason, it is in your best interest to sign on for a year-long policy rather than a six-month policy, which has become the standard.
This will prevent you from seeing a hike in your rates every six months when your policy renews.
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Why You Have To Register an Older Car
The insurance company you have your car registered with is not the one that decides whether or not your vehicle is an antique — you have to prove it to them.
Most companies require you to register your car with your DMV offices as an antique and have “classic” tags on your vehicle as well.
In some cases, you may also be required to get a certification from a qualifying group stating that your vehicle is a classic. You will also have to have your vehicle appraised and get that appraisal in writing, to prove that it is indeed a classic vehicle.
The insurance company isn’t going to take your word for it that you are driving an antique car that has value.
You will also want to keep receipts for any maintenance and improvements that you make to your car. This tells the insurance company that you are going to maintain your car and keep it at the value that it has been appraised.
Does an antique car need insurance to register? Yes, to register any vehicle, one of the items an owner must provide is proof of insurance.
Read more: Do I need car insurance to register my car?
The Cost to Insure Classic Cars
Is classic car insurance expensive? Or is insurance cheaper on older cars? The differences between classic and standard car insurance come down to cost and qualifications. Classic or antique vehicle insurance tends to be cheaper, and there is a list of qualifications to meet for these policies.
Insurance for classic cars is based upon agreed-upon value instead of the KBB value. A specialty classic car insurance company can offer aspects of the auto policy that standard companies may not.
Classic Car Insurance Availability
Do all insurance companies offer insurance for classic cars? To start, it is important to know that not all insurance companies offer classic car insurance. The company with which you insure your regular vehicle may not offer specialty car insurance coverage, so you may have to look around.
In general, most insurance companies will give discounts if you insure more than one product with their company. If you find a company that sells both classic cars and standard car insurance, you may be able to save money by insuring all of your vehicles with them.
When searching for a company that offers specialty classic car insurance, one of the considerations you should consider is whether the company is financially stable. You can find that information from the insurance rating company A.M. Best.
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Qualifications for Classic Car Insurance
What’s the difference between antique and classic cars? What’s the difference between classic and vintage cars?
Antique cars are defined as those 45 years or older vehicles, while classic cars are at least 20 years old. Vintage cars were made between 1919-1930. (For more information, read our article The 25 Best Vintage Cars of All Time). Classic and antique cars would be considered a designation cheaper than vintage.
Is insurance cheaper for antique cars? How much does antique car insurance cost? You can purchase a general classic or antique car insurance policy or a specialized one for vehicles that are classified as custom, collectible, or exotic.
There are several factors that insurance companies will look into when you apply for a policy. Here is some of the information that may be required.
- The car needs to be of a particular age or older.
- A driving record free of any major incidents
- Ten years of driving experience or more
- No teenage drivers or those with poor driving records on the policy
- A secure storage facility or garage, out of the weather, where the vehicle is kept
- Proof that you also own another car for daily transportation
- The classic car cannot be driven for business reasons, it can only be driven for particular activities
- Proof that the car will have limited mileage placed on it: The classic vehicle has to be driven less than 2,500 miles a year
If you do not meet these qualifications you may be denied classic car insurance, offered a policy that only covers the face value of the vehicle, or charged a very large rate.
The cheapest old cars to insure aren’t usually considered classics, but that doesn’t mean you can’t get good rates.
Read more: Compare Car Insurance for Older Cars: Rates, Discounts, & Requirements
Insuring a Classic Car With Standard Car Insurance Companies
Many of the classic cars that are being driven on the road are insured by standard insurance companies, so some do offer that as a policy.
Collector car insurance costs more than regular coverage most of the time.
Standard insurance companies tend to charge more for the premiums, even though they are more restrictive policies. You may find that insuring with a specialty car company will save you more money.
How to Get Classic Car Insurance Rates
Many car insurance companies, such as Hagerty and American Collectors Insurance, specialize in classic car insurance policies. Since classic cars are different than regular cars, insurance products are different as well.
It is important to work with an insurance agent and company that understands the intricacies of classic cars and offers you the appropriate insurance coverage.
Speak to your agent about insuring your vehicle, and be sure to shop around and compare different companies to ensure you save on the cost of your classic car insurance. Finally, make sure that the coverage is relevant to your situation.
Read more:
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How to Get the Cheapest Antique Car Insurance Rates
You aren’t going to be getting the same discounts on antique car insurance that you would with a standard policy.
A big part of your policy is insuring the value of your car.
However, you can keep your rates down if you have a good driving record and a good credit score.
Of course, shopping around is an excellent way to ensure that you are getting the lowest rates. However, many more traditional insurance companies don’t cover antique cars, so you will want to include specialty car insurance companies in your search.
Read more: How much car insurance should I carry on an antique car?
Before you select a company, you should check them out at the Better Business Bureau (BBB) and ensure that they have a good reputation, especially if you are going with a specialty company.
In addition, you can check their financial ability to pay their claims through sites such as AM Best, Standard & Poor’s, and more. Researching companies can give you cheaper rates.
While they may not be as cheap as a standard auto policy, you can find the best and most affordable rate for your budget among the wide range of options that exist.
The Bottom Line: Classic vs. Standard Car Insurance
You definitely should search for a specialty classic car insurance company in certain situations, as they offer aspects of the auto policy that standard car insurance companies may not.
One situation may be that you would like to use a mechanic of your choice in the event it needs repairs. You may also want to check out specialty companies if you want the car insured for the actual amount you think it is worth.
Keep in mind that you may need to insure with a specialty insurance company if you’re looking for liability insurance at club events, would like coverage for any damage that may occur at car shows, or would like coverage during the time the car is being restored.
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Other situations may include wanting to be covered if you are shipping your classic car somewhere overseas or out of state, or flexible premiums based on how many miles you drive it per year.
Just enter your ZIP code in the box at the bottom of this page to compare classic or antique car insurance quotes.
Case Studies: Classic vs. Standard Car Insurance
Case Study 1: The Vintage Road Trip
John owns a vintage car that he enjoys taking on occasional road trips. He decides to insure his vehicle with classic car insurance. His policy includes usage restrictions, limiting his annual mileage to 3,000 miles.
One summer, John plans a cross-country road trip with his vintage car, exceeding the mileage limit. Unfortunately, during the trip, his vehicle is involved in an accident. John contacts his insurance company to file a claim.
However, since he exceeded the mileage limit, his claim was denied, and he is left to cover the repair costs himself.
Case Study 2: The Restored Classic
Sarah restored a classic car to its former glory and decided to insure it with classic car insurance. After completing the restoration, Sarah gets her car appraised and adjusts her insurance coverage to reflect its current value.
A few years later, Sarah’s classic car becomes highly sought after, and its value skyrockets. She contacted her insurance company to update the agreed value of her vehicle.
The insurance company reviews the documentation and agrees to adjust the coverage accordingly. In the event of a total loss, Sarah can expect to receive the current market value of her restored classic car.
Case Study 3: The Everyday Commuter
Mark owns a standard everyday commuter car and opts for a standard car insurance policy. He uses his car for daily commuting, errands, and occasional long-distance trips. One day, while parked in a shopping mall, Mark’s car is stolen.
He immediately reports the incident to his insurance company and files a claim. The insurance company processes the claim and reimburses Mark for the value of his stolen car, minus the deductible. Mark can now use the insurance payout to replace his stolen vehicle.
Case Study 4: The Antique Showpiece
Emily owns an antique car that she only displays at classic car shows and exhibitions. She insures her vehicle with classic car insurance, which offers coverage tailored to the unique needs of collectible vehicles.
One day, while transporting her antique car to a car show, Emily gets into an accident due to another driver’s negligence. She contacts her insurance company to report the incident and files a claim for the damage caused to her antique car. The insurance company sends an adjuster to assess the damage and approve the claim, covering the cost of repairs.
Case Study 5: Vintage Restoration Project
John owns a vintage car that he is in the process of restoring. He wants to insure the car during the restoration period to protect his investment. He contacts a specialty classic car insurance company that offers coverage for cars under restoration. With the agreed-upon value policy, he can ensure that any damage or loss to the car will be fully covered.
Case Study 6: Collector Car Show Coverage
Emily owns a collection of classic cars and frequently participates in collector car shows. She wants insurance coverage that includes protection for any damage that may occur during these events. She finds a specialty classic car insurance company that offers coverage for car shows and other club events. This ensures that she can enjoy the shows without worrying about potential damages.
Case Study 7: International Shipping of a Classic Car
Mark plans to ship his classic car overseas for a vintage car rally. He needs insurance coverage that will protect his car during transit and while it is abroad. He discovers a specialty classic car insurance company that offers coverage for international shipping. This gives him peace of mind knowing that his car is protected throughout the journey.
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Frequently Asked Questions
What is the difference between classic car insurance and standard car insurance?
Classic car insurance is specifically designed for vintage, antique, or collectible vehicles, while standard car insurance covers everyday vehicles used for regular transportation. Classic car insurance often offers specialized coverage and benefits tailored to the unique needs of classic cars.
How are the rates for classic car insurance and standard car insurance determined?
Rates for both types of insurance are determined by several factors, including the driver’s age, driving history, location, type of vehicle, coverage limits, and deductibles. However, classic car insurance rates may be influenced by additional factors such as the vehicle’s age, value, rarity, and usage restrictions.
Are there any discounts available for classic car insurance?
Yes, insurance providers often offer various discounts for classic car insurance, such as Hagerty car insurance discounts.
These discounts may include multi-vehicle discounts, low mileage discounts, membership or affiliation discounts (e.g., for members of car clubs or enthusiasts’ organizations), and safety feature discounts (e.g., for vehicles equipped with anti-theft devices).
What are the requirements for classic car insurance?
The specific requirements for classic car insurance can vary between insurance providers. However, common requirements include the vehicle’s age (typically at least 15 to 20 years old), limited usage (e.g., for hobby or exhibition purposes), proper storage and security measures, and a clean driving record for the insured driver.
Can I use classic car insurance for my everyday vehicle?
Classic car insurance is generally intended for vehicles used on a limited basis, such as for car shows, exhibitions, or occasional pleasure driving. It is not typically suitable for everyday use or primary transportation. For regular vehicles, standard car insurance is more appropriate and offers the necessary coverage.
Is car insurance higher for older cars or is an older car cheaper to insure?
This depends. As we’ve touched on, classic cars are generally more expensive to insure. However, if you own an older vehicle that doesn’t qualify as a classic, chances are good that insurance for it will be pretty cheap.
One factor insurance companies use to determine your rates is the monetary value of your vehicle. They go by the Kelley Blue Book antique cars value and cheaper vehicles are cheaper to repair, so they don’t charge as much. Read more about car insurance market value.
Generally speaking, a newer car is not cheaper to insure than an older one.
Are classic cars cheaper to insure for young drivers?
In most cases, older drivers have much cheaper insurance than young drivers.
While your driving record and credit history have a massive impact on your rates, your age does as well. In fact, 17-year-olds can pay multiple times as much as a 60-year-old driver.
Insurers determine risk partly by how much experience you have out on the roads, so more years out driving means less risk to them and more money in your pocket.
Is it more expensive to insure classic cars?
Classic cars are generally more expensive to insure due to several factors. First, the value of the vehicle is calculated differently, often using an agreed-upon value rather than the stated value.
Second, classic cars may require specialized repairs and parts, which can be more costly. Lastly, standard car insurance policies may not offer enough coverage to replace or repair a classic car adequately.
How much does it cost to insure a classic car?
The cost of insuring a classic car can vary depending on factors such as the car’s value, age, condition, usage, and the insurance company. Specialty classic or antiques insurance offers the coverage needed to fully repair or replace the car but often comes with a higher price tag.
Do all insurance companies offer insurance for classic cars?
Not all insurance companies offer classic car insurance. It’s important to research and find a company that specializes in classic car insurance coverage. Some insurance companies may offer both classic car and standard car insurance, allowing you to insure all your vehicles with one company.
Start your search by entering your ZIP code into our free quote comparison tool.
Is antique car insurance more expensive than standard car insurance?
Generally, antique car insurance tends to be more expensive than standard car insurance.
There are several factors that contribute to this difference in pricing, including the uniqueness and value of antique vehicles, limited availability of replacement parts, higher repair costs, and the specialized expertise required to properly insure these vehicles.
How is the value of an antique car determined for insurance purposes?
The value of an antique car for insurance purposes is typically determined based on a few factors. Factors for antiques insurance may include the vehicle’s age, make, model, condition, rarity, historical significance, and any modifications or enhancements.
Some insurers may require professional appraisals to establish an agreed-upon value for the vehicle.
Can I use my antique car for everyday use if it is insured as an antique?
Insurance policies for antique cars often come with usage restrictions. Most insurers require that the vehicle be used on a limited basis, such as for exhibitions, parades, club activities, or occasional pleasure driving.
Using an antique car as a daily driver may violate the terms of the policy and could result in a denial of coverage in the event of an accident.
When is a car an antique for insurance?
The definition of an antique car may vary depending on the insurance provider and the state or country in which you reside. In general, an antique car is typically considered to be a vehicle that is at least 25 to 30 years old and is maintained in a restored, original, or historically accurate condition.
Are antique tags cheaper?
Yes, if you meet your state’s requirements for its definition of an antique vehicle, registration can be cheaper — and sometimes free.
Are antique plates cheaper?
Yes, they usually cost less, but you have to meet your state’s requirements for an antique car. For example for the blue antique license plates in Florida, your vehicle must be at least 30 years old.
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Joel Ohman
Certified Financial Planner
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...
Certified Financial Planner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.