Here are Car Talk’s recommendations for the best insurance companies for classic or collector vehicles:
So, after months of searching and budgeting, you’ve found your dream classic car. Driving and enjoying it are likely to top of mind for you, but there are other, much less exciting things to think about. Insurance is one of those things, but shopping for a policy doesn’t have to be a terrible experience.
Classic car insurance is similar to the coverage you have on your other vehicles, but there are some important differences that you need to be aware of. First, you’ll need to find an insurer, but you’ll also need to determine a value for your new baby and work with that insurer to find coverage that protects your investment and helps you replace or repair it in the event of an accident.
We compared quotes for several popular classic cars to get an idea of the range of costs and how three of the top classic car insurance companies stacked up. All three specialize in insuring collector vehicles, mostly those that are not used as a daily driver. We sought quotes that include liability coverage of at least $100,000 per individual/incident and assuming fewer than 2,500 driving miles per year on the vehicle. Grundy is the cheapest classic car insurer in every one of our examples, but it has a $500 deductible whereas the others do not.
Here are the annual insurance premiums we were quoted:
|Hagerty Insurance||American Collectors Insurance||Grundy Worldwide|
|Spare parts coverage is $750. Restoration coverage included. $0 deductible.||Spare parts coverage is $500. Restoration coverage not included. $0 deductible.||Spare parts coverage is $500. Restoration coverage included. $500 deductible.|
|1986 Chevrolet Monte Carlo SS. With 90k miles and valued at $10,000||$266||$162||$120|
|1966 Ford Mustang Coupe. With 80k miles and valued at $17,800||$209||$180||$151|
|1977 Mercedes-Benz 280SL. With 85k miles and valued at $11,000||$266||$146||$94|
|1999 BMW M Coupe. With 25k miles and valued at $32,000||$565||$682||$272|
|1974 Alfa Romeo Spider. With 29k miles and valued at $16,000||$251||$180||$136|
|1966 MG MGB. With 84k miles and valued at $13,000||$178||$152||$111|
Compare quotes from multiple providers to get a good deal.
We’ll take a look at what makes classic and collector car insurance special, but first, some terminology:
When you start the process of buying insurance for your vehicle, a large part of your policy’s cost will hinge on that vehicle’s value. Another factor in the process is the amount of money you’ll receive if the vehicle is in a collision or is destroyed. With a late-model vehicle, calculating value is a pretty straightforward process, since there’s plenty of data on sales and purchase prices. Classic and collector vehicles are a different story, though, because they aren’t typically sold at dealerships and the values can vary wildly.
The agreed value will determine what you get paid if the vehicle is damaged or destroyed and can help you cover your valuable or sentimental ride that may or may not carry the value you assign to it. Hagerty says that agreed value is an option offered primarily by specialty insurers.
Classic car insurance coverage looks an awful lot like traditional vehicle insurance. You’ll still be looking at standard liability coverage, but in many cases, you’ll want to pay for collision, injury, and other options. Most carriers offer some sort of part replacement or other coverage that helps you recover damages for custom work and modifications that have been made to the vehicle.
Many policies include extras like roadside assistance, trip interruption coverage, medical coverage, and more. Some policies include special coverage for auto show attendance, which can help protect you if you or someone else gets hurt while your vehicle is on display. There are even options to cover your vehicle at auto shows if you aren’t there, or if you are forced to cancel for some reason and lose money as a result.
You may be reading this and thinking that classic car insurance costs an arm and a leg, and while that can be true in some cases, the costs can be affected by many factors. Unlike a new vehicle, there’s a great chance that your classic or collector vehicle won’t be used as your daily driver, which should drastically reduce the number of miles driven. Additionally, not all classic vehicles are as expensive as newer cars, and assuming parts are relatively easy to find, they may even be cheaper to fix after an accident. Hagerty says that, on average, their classic car insurance can cost 39% less than standard car insurance, while Grundy states that their policies are around 50% less on average.
But even that assumes that your classic car is worth what your current daily driver is. Most often, that's not the case. Instead of buying insurance for a super-rare 1962 Ferrari GTO that almost none of us can afford, we compared the costs to insure more popular and attainable classic cars including a Chevy Monte Carlo, a Ford Mustang, a Mercedes-Benz 280SL, a BMW M Coupe, an Alfa Romeo Spider and an MG. You can see the prices we were quoted in the table further up this page.
We compared prices from Hagerty, American Collectors, and Grundy, by providing the following variables for all of these cars:
From a quick glance, you can see that the annual premiums for these cars are probably a good bit lower than what you pay to insure your main driving vehicles.
While classic policies can be less expensive, there are limitations to reach lower prices. Most policies will include mileage and usage limits. None of these insurers have a minimum age of what they consider "classic," but they also won't insure your 2017 Accord. They really insure "specialty" vehicles rather than "classics."
Where you store your vehicle will also impact the price of the policy, as a car stored in a garage will carry a lower premium. Classic car insurance also assumes that older vehicles will be driven in a more careful manner than a newer one.
Compare quotes from multiple providers to get a good deal.
Hagerty is one of the best known and most respected insurers in the classic and collector vehicle space. The company offers a variety of insurance products for almost any vehicle and has flexible policies to allow more mileage and other benefits over competing insurers.
Getting a quote from Hagerty is easy. Just fill in the online quote tool and it will be presented to you online. You'll get emails about it later that you can choose to ignore or respond to.
As you can see from the quote comparison for exactly the same vehicle, Hagerty is the most expensive of the classic car insurers. But it's also got a couple of advantages, and it's the one with the most additional perks and services, some of which truly make owning a classic car more enjoyable.
Hagerty provides more parts insurance than the other two insurers. Considering that a clean New Old Stock console for an '86 Monte Carlo SS can easily run into the $500 range, it would be nice to have coverage on that item if it were to get destroyed or stolen.
Second, Hagerty has "restoration" coverage, meaning that you can agree to a value for that vehicle as it's being restored, then adjust the coverage when it's completed protecting you if the vehicle was stolen or destroyed by fire as it was in the process of being restored.
Then there's the magazine. When you have a Hagerty insurance policy, you get a subscription to its fantastic magazine. As the publishing industry has essentially imploded, some of the best automotive writers and photographers in the country have been selected to put the magazine together every month. If reading a magazine is your thing, it's definitely worth an additional $20 or $30 per year.
You also get other benefits like roadside assistance and concierge services as part of the deal, the benefits of which are easily as good as AAA.
American Collectors has been around since 1976 and offers a variety of policies to cover classic and collector vehicles of all types. They also offer coverage for motorcycles, rods, and custom vehicles.
American Collectors used to be an independent company, but in the last few years, it was purchased by Assurant, a giant insurance conglomerate that trades on the New York Stock Exchange. There are obvious pros and cons of dealing with a huge insurance company. You can realize some cost savings, but you might also lose some of the personal touches that a privately owned company can provide.
The quote tool is similarly easy to use. Just put in your particulars and you'll be provided a quote online.
American Collectors do not have restoration coverage, which is a distinct disadvantage. And while it does cover restoration parts, that coverage caps out at $500.
Like Hagerty, American Collectors has a member’s club with events and various other benefits for people who pay an additional fee.
You’ll note in our table that Grundy is the cheapest insurance, regardless of the car insured. However, that’s because they apply a $500 deductible if your vehicle is damaged. You can opt for a deductible with the other providers, but Grundy doesn’t let you opt for $0 deductible. That makes it cheaper upfront but could be more expensive if you do need to file a claim in the future.
Grundy insures much more than just vehicles, offering personal and homeowners insurance on top of their automobile policies.
Grundy's quote tool is a piece of cake, too. It's really remarkable how quickly and painlessly all of these companies share the cost of insuring a classic vehicle.
Grundy provides restoration coverage, which is a big win. It offers slightly fewer parts coverage at $500, so consider that before you make your decision.
One of the company’s big selling points is that they will ensure all vehicles at their agreed value. It's part of a program they call "MVP". It means that you can ensure a daily driver at an agreed value, and if you experience a total loss, you'll collect that value, regardless of depreciation. And not only will they cover your cars, but they'll also cover things like RVs, travel trailers and even your pet. If your pet happens to get injured in an auto accident, Grundy will reimburse you for related expenses.
Originally, we were unambiguous about not insuring your classic car through a major carrier. There are all kinds of reasons not to: Major insurers have no idea how to, nor have any interest in learning, how to provide coverage for a classic vehicle. If you're involved in an accident, you'll receive the "book value" for your loss, which can be tens of thousands less than you've invested in it.
HOWEVER (and this is a big however) there are a handful of reasons to get your insurance through a major carrier if you drive a classic car:
When you insure a vehicle like this through a conventional insurer, there are a couple of things to keep in mind:
A: Yes. You and your insurer can discuss options, but the agreed value of the vehicle should include any modifications or custom parts that add to its replacement cost.
A: You own the vehicle and can do with it as you please, but your insurance policy might not cover you if you’re using it as a daily commuter. Most classic insurance policies have strict mileage limitations, which can impact the policy’s cost and coverage options.
A: The cost of your classic car insurance policy will depend on the vehicle that you’re insuring, how much you drive, and on other factors like your driving record and credit. In general, classic car insurance is less expensive than traditional insurance because the carrier assumes that the vehicle is being used infrequently and that it’s being babied when it is driven.
A: You may be able to have your vehicle reassessed and appraised to update its value. Check with your insurer, but be aware that your rates may increase if the vehicle’s value goes up.
The best way to save is to compare multiple quotes. Start now.