How Classic Car Insurance Works (And Why Your Regular Auto Policy Won't Cut It)

You've spent years finding it, restoring it, or tracking down every original part. Your classic car isn't just a vehicle — it's an investment, a passion project, and probably something you'd be heartbroken to lose.

So why would you insure it the same way you insure your daily commuter?

At the Christopher Griepp Agency, classic vehicle coverage is one of our specialties. Here's what you need to know.

Why Standard Auto Insurance Falls Short

A regular auto insurance policy values your car based on its actual cash value — essentially, what a depreciated vehicle of that make, model, and year is worth on the open market today. For a daily driver, that makes sense. For a classic, it can be a disaster.

A standard policy might value your meticulously restored 1967 Mustang at a few thousand dollars based on depreciation schedules — nowhere near what you've invested in it, and nowhere near what it would actually cost to replace.

Classic car insurance is built differently.

Agreed Value vs. Stated Value: Know the Difference

This is the most important concept in classic car insurance, and it's worth understanding clearly.

Agreed Value: You and the insurance company agree on the car's value upfront — say, $45,000. If the car is totaled, you receive that full $45,000. No depreciation, no negotiation, no surprises. This is generally the better option for serious collectors and restored vehicles.

Stated Value: You state a value, but the policy pays the lesser of that stated value or the actual cash value at the time of the claim. It's more affordable but offers less protection. If your car has appreciated significantly, you could end up significantly undercompensated.

For most classic vehicle owners, agreed value coverage is worth the investment.

What Qualifies as a Classic?

Different insurers define this differently, but generally speaking, vehicles that qualify for classic or collector car insurance include:

• Vehicles 25 years or older

• Antique vehicles (typically 45+ years old)

• Collector vehicles in above-average condition

• Replica or kit cars

• Modified vehicles with significant aftermarket investment

• Some specialty or limited-production vehicles regardless of age

The vehicle also typically needs to be stored properly and not used as a daily driver. Usage restrictions vary by policy.

What Classic Car Insurance Typically Includes

Beyond the agreed value coverage, a good classic car policy often includes:

Spare parts coverage — those original parts you've been collecting are covered too.

Roadside assistance — specialized towing that won't damage your vehicle.

Flexible usage — coverage for car shows, club events, and occasional pleasure driving.

No depreciation on claims — parts and repairs at their actual value, not a depreciated rate.

Hagerty: The Gold Standard for Classic Coverage

We work with Hagerty, widely considered the top carrier in the classic and collector vehicle space. They understand what these vehicles are worth, they employ people who actually love cars, and their claims process is built around the realities of classic vehicle ownership.

If you own a vehicle worth protecting properly, Hagerty is usually where we start the conversation.

Common Mistakes Classic Car Owners Make

Insuring under a standard policy and hoping for the best. Until you have a claim, you won't know what you're missing — and by then it's too late.

Underinsuring to save on premiums. Classic car values have appreciated significantly in recent years. An agreed value set five years ago may no longer reflect what your vehicle is actually worth. Review your coverage regularly.

Not documenting the vehicle's condition. Photos, maintenance records, receipts for restoration work — all of this supports your claim if something happens. Keep good records.

Forgetting about spare parts. If you've accumulated a collection of original parts, make sure they're covered.

Let's Talk About Your Vehicle

Whether you have a single collector car or a garage full of them, we'll find the right coverage and make sure you're not leaving yourself exposed. We work with Hagerty and other top specialty carriers to get you an agreed value policy that actually reflects what your vehicle is worth.

Call us at 651-349-7799 or request a quote online. We're happy to talk cars.