Insurance for Classic Cars vs. Standard Auto Insurance

When it comes to protecting your vehicle, not all insurance policies are created equal, especially if you own a classic car. While standard auto insurance is designed for everyday vehicles, classic car insurance caters to the unique needs of vintage and collectible automobiles. Understanding the differences between the two can help you choose the right coverage.

Definition and Usage

Standard auto insurance is intended for vehicles used for daily commuting and regular driving. It typically helps cover liability, collision and comprehensive damage, and premiums are based on factors like age, driving history and vehicle value.

Classic car insurance, on the other hand, is tailored for vehicles that are typically over 20 years old, well-maintained and not used as primary transportation. These cars are often driven only occasionally, such as to car shows or weekend cruises, and are usually stored in secure garages.

Valuation Differences

One of the most significant distinctions lies in how the vehicle’s value is determined. Standard policies use actual cash value (ACV), which factors in depreciation. This means that in the event of a total loss, you may receive less than what the car is truly worth.

Classic car insurance uses an agreed value model. The insurer and the owner agree on the car’s value upfront, and that amount is paid out in the event of a total loss without depreciation. This is crucial for classic car owners, as many vintage vehicles appreciate over time.

Coverage and Restrictions

Classic car policies often include specialized coverage options such as spare parts coverage, restoration protection and coverage during transport. However, they often come with restrictions, such as mileage limits, usage limitations and storage requirements.

Standard auto insurance is more flexible in terms of usage but lacks the tailored protection that classic cars often require.

Learn More

If you own a classic car, opting for classic car insurance is usually the more intelligent choice. For daily drivers, however, standard auto insurance remains the most practical option. For auto insurance near you, contact Casual Insurance Group.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.