Posted by Whether you’re an enthusiast or a car collector, classic cars are an investment that is worth protecting. Finding the right insurance for your classic car can be a challenge, especially due to the premium cost, but does it have to be that way? No, it doesn’t.
According to a recent study, classic car insurance premiums are on the rise, costing between $200 and $600 per year in the United States. As more and more people are turning to classic cars as an investment, it’s important to understand how to protect your investment with the right insurance coverage.
In this article, we’ll take a look at the cheapest classic car insurance companies from around the world as well as what to look for when shopping for coverage. We’ll explore what these insurers offer, what makes them unique, and how they can help you keep your classic car protected.
So, sit back and get ready to drive into the world of classic car insurance, starting with what a classic car is all about.
What is a Classic Car?
The definition of a classic car can vary, but below are some features that qualify a car as a classic:
- At least 20 years old
- In original or restored condition
- A model that is no longer in production
- Considered rare or collectible
- A special or historically significant vehicle.
Importance of Classic Car Insurance
The following are some of the benefits of having insurance for your classic car:
- Peace of mind
- Coverage for the full appraised value of the car
- There are no mileage restrictions or requirements
- Coverage for damage, theft, and other losses while the car is in storage or being transported
- Flexible usage options that allow for occasional or seasonal use
- Coverage for specialized maintenance and care
- Access to a network of specialized repair shops
- 24/7 claims service
- Access to a variety of discounts and benefits.
Eligibility Criteria for Classic Car Insurance
- Your car must be at least 20 years old
- The model of the car must no longer be in production
- Your car must be in original or restored condition
- The car must be used primarily for pleasure and not as a daily driver
- You must store your car in a secured location when not in use
- Your car must have a limited annual mileage
- The car must have an accurate appraisal or valuation, etc.
List of the Cheapest Classic Car Insurance Companies
The following is a list of the most affordable classic car insurance providers:
- Grundy Insurance
- American Modern Insurance Group
- J.C. Taylor
- State Farm
- AIG
- Chubb Masterpiece
- American Collectors Insurance
- Horace Mann
- Heacock Classic
- Chubb.
Details on the Best Affordable Classic Car Insurance Companies
Grundy Insurance
- Location: USA
- Year Founded: 1947
- Average Annual Premium: $600
Pros
- Lay-up insurance, which allows you to put your classic car into storage and reduce your premiums
- Towing and labor coverage, which covers the cost of towing and labor for your classic car
- No deductible for glass repair or replacement
- 24/7 claims service.
Cons
- The company has a limited number of agents, so it may.
Description
Grundy Insurance specializes in classic car insurance. It offers policies for a variety of classic and antique cars.
This insurance is known for its high level of customer service, and it has been ranked as one of the best classic car insurers by organizations like A.M. Best and J.D. Power.
Grundy Insurance offers agreed-value policies, meaning that you’ll know exactly how much your car is worth in the event of a total loss.
American Modern Insurance Group
- Location: USA
- Year Founded: 1965
- Average Annual Premium: $2,000
Pros
- Coverage for classic cars of all ages and values
- Agreed value coverage, which covers the full value of your car in the event of a total loss
- Flexible usage, so you can drive your classic car as much or as little as you want
- Coverage for spare parts, tools, and car show travel expenses
- 24/7 claims service.
Cons
- The company does not offer discounts for multiple cars.
Description
American Modern Insurance Group (AMIG) is a subsidiary of the American Financial Group, and it offers classic car insurance through its subsidiaries, American Modern Insurance Company and American Southern Home Insurance Company.
AMIG is one of the largest providers of collector car insurance in the U.S., and it has been providing this type of insurance since the 1960s.
It offers a variety of coverage options, including guaranteed value policies, roadside assistance, and flexible payment plans.
J.C. Taylor
- Location: USA
- Year Founded: 1947
- Average Annual Premium: $1000
Pros
- Agreed value coverage, which covers the full value of your car in the event of a total loss
- Coverage for spare parts, tools, and car show travel expenses
- Club discounts, which are available for members of classic car clubs
- Optional coverage for medical payments and personal injury protection.
Cons
- The company does not have a mobile app.
Description
This insurance provider has been in business since the 1950s, and it’s one of the largest classic car insurers in the U.S. and the world at large.
J.C. Taylor offers agreed-value policies, and it also has several coverage options, including spare parts coverage, car show coverage, and coverage for drivers under 25.
The company’s website also has a variety of resources for classic car enthusiasts, including an events calendar and a blog.
State Farm
- Location: USA
- Year Founded: 1922
- Average Annual Premium: $1200
Pros
- Agreed value coverage, which covers the full value of your car in the event of a total loss
- No mileage restrictions, so you can drive your classic car as much as you want
- 24/7 claims service.
Cons
- The company does not offer as many discounts as some other insurers
- Not all coverage options are available in every state
- The agreed value coverage has a deductible of $1,000.
Description
This is one of the largest auto insurers. The company offers classic car insurance through its subsidiary, State Farm Mutual Automobile Insurance Company.
State Farm’s classic car insurance policy is customizable, so you can tailor it to your specific needs. Also, it has a 24/7 claims service, and it’s available in all 50 states in the United States.
AIG
- Location: USA
- Year Founded: 1919
- Average Annual Premium: $2000
Pros
- Coverage for classic cars of all values
- Agreed value coverage, which covers the full value of your car in the event of a total loss
- Discounts for bundling policies, safe driving, and membership in classic car clubs
- No mileage restrictions, so you can drive your classic car as much as you want.
Cons
- The company does not offer coverage in every state.
Description
AIG, or American International Group, is a global insurance company that offers classic car insurance. Its classic car insurance policy is designed to meet the unique needs of classic car owners, and it covers a wide range of classic cars, from American muscle cars to European sports cars.
It provides insurance for spare parts, car shows, storage, etc. AIG also has several optional coverage options, which include trailer coverage and agreed-value policies.
Chubb Masterpiece
- Location: USA
- Year Founded: 1882
- Average Annual Premium: $1500
Pros
- No deductible for agreed-value coverage
- 24/7 claims service
- Discounts for bundling policies, safe driving, and membership in classic car clubs
- There is no surcharge for accidents, violations, or claims.
Cons
- It can be more expensive than other insurers
- There may be limited options for coverage and discounts.
Description
Chubb Masterpiece is a specific type of classic car insurance policy offered by Chubb. The policy is designed for owners of high-value classic cars, and it offers comprehensive coverage for these vehicles.
The policy includes agreed value coverage, which covers the full value of your car in the event of a total loss.
It also has no mileage restrictions, so you can drive your classic car as much as you want. Additionally, the policy includes coverage for spare parts, tools, and car show travel expenses.
Chubb Masterpiece is available in all 50 states, and it has a 24/7 claims service.
American Collectors Insurance
- Location: USA
- Year Founded: 1976
- Average Annual Premium: $500
Pros
- Coverage for classic cars of all values
- Agreed value coverage, which covers the full value of your car in the event of a total loss
- Low deductibles, which can be as low as $100
- Discounts for safe driving, membership in classic car clubs, and multiple cars.
Cons
- The deductible for comprehensive and collision coverage is $1.
Description
This company has been in business since 1976, and it’s one of the leading providers of classic car insurance in the U.S.
American Collectors Insurance offers agreed-value policies, which cover the full value of your car in the event of a total loss.
The company has a 24/7 claims service, and it offers discounts for club memberships and safe driving.
Horace Mann
- Location: USA
- Year Founded: 1945
- Average Annual Premium: $950
Pros
- Low deductibles, which start at $200
- Discounts for bundling policies, safe driving, and membership in classic car clubs
- 24/7 claims service
- Optional coverage for spare parts, tools, and car show expenses.
Cons
- Coverage is only available in 34 states in the United States
- There is no roadside assistance.
Description
Horace Mann is a company that specializes in insurance for educators, and it offers classic car insurance through its subsidiary, Horace Mann Auto & Home Insurance Company.
The company has been in business since 1945, and it has a long history of serving the educational community.
Horace Mann’s classic car insurance policy covers a wide range of classic cars, and it has several features that are designed specifically for classic car owners.
It also has many coverage options, including spare parts coverage, trailer coverage, and car show.
Heacock Classic
- Location: USA
- Year Founded: 1989
- Average Annual Premium: $2,000
Pros
- Coverage for classic cars of all values
- 24/7 claims service
- The company offers personalized service and support from a dedicated agent
- Heacock Classic has a solid reputation for customer service and claims satisfaction.
Cons
- The company does not have a mobile app.
Description
Heacock Classic has been in business since 1968, and it’s one of the most experienced providers of classic car insurance in the U.S.
The company offers a variety of coverage options, including agreed value coverage, spare parts coverage, and car show coverage.
Heacock Classic also has several discounts available, including discounts for members of classic car clubs and for completing a safety course.
Chubb
- Location: USA
- Year Founded: 1882
- Average Annual Premium: $1,500
Pros
- Discounts for bundling policies, safe driving, and membership in classic car clubs
- 24/7 claims service
- Coverage for overseas travel
- Chubb has a solid reputation for customer service and claims satisfaction.
Cons
- The company’s rates are generally higher than those of other insurers.
Description
Chubb is a global insurance company that offers classic car insurance through its subsidiary, Chubb Personal Insurance.
The company has been in business since 1882, and it’s one of the most well-known and respected insurance companies in the world.
Chubb’s classic car insurance policy covers a wide range of classic cars, and it has many features that are designed specifically for classic car owners.
Tips for Shopping for the Best Affordable Classic Car Insurance Companies
- Shop around and compare quotes from multiple insurers
- Determine the agreed value of your car with the help of an appraiser
- Consider a limited-use policy if you don’t plan on driving your classic car very often
- Ask about discounts and other ways to save on your premium
- Review your policy periodically to make sure it still meets your needs
- Keep detailed records of your classic car, including photos and maintenance records
- Store your classic car in a secure location when not in use.
FAQs on the Cheapest Classic Car Insurance Companies
Do I need special insurance for a classic car?
Yes, you will likely need a specialized classic car insurance policy if you own a classic car. While you may be able to add your classic car to your regular car insurance policy, it's generally not recommended. Classic cars have different needs and risks than regular cars, so they require a different type of insurance policy.
Do I need to be a member of a classic car club to get a discount?
While some insurance companies may offer discounts to members of classic car clubs, it is not a requirement for all policies. Many classic car insurance policies are available to anyone who owns a classic car, regardless of whether they are a member of a club.
What is the agreed value coverage?
Agreed value coverage is a type of insurance policy that covers the car for an agreed-upon amount, regardless of its current market value. With this type of policy, the insurer and the policyholder agree on the value of the car at the time the policy is purchased, and this amount is typically listed in the policy itself.
What is a limited-use policy?
A limited-use policy is a type of insurance policy that is designed for classic cars that are not driven frequently. With this type of policy, the insurer and the policyholder agree on a specific number of miles that the car can be driven each year. If the car is driven beyond this limit, the policyholder may be required to pay a higher premium or face other penalties.
Can I use my classic car as my daily car?
In general, it is not recommended to use a classic car as your daily driver. Classic cars are not designed for the rigors of daily driving, and they may not have the same safety features as modern cars. Additionally, driving a classic car regularly can put additional wear and tear on the vehicle, potentially reducing its value.
Editor’s recommendation:
- Top 10 Best Affordable Family Health Insurance Plans
- 10 Best Affordable Motorcycle Insurance
- Best Affordable Boat Insurance For Older Boats
- 10 Best Affordable Motorcycle Insurance
- 5 Cheapest Pet Insurance for Dogs in the UK.
Conclusion
While cost is a major factor to consider when choosing an insurance company, it’s not the only factor to consider.
When it comes to insuring a classic car, it’s important to find a company that has experience working with classic car owners and understands the unique needs of this type of vehicle.
Additionally, it’s important to make sure that the company you choose offers a policy that is tailored to your needs, with adequate coverage and reasonable deductibles.