How to Value a Classic Car for Insurance?

car insurance

Everyone is probably familiar with the concept of car insurance. Having car insurance protects your car (an asset), not physically, but it covers the cost of damages your car suffers due to either theft or accident.

Classic cars are unlike regular four-wheelers; they’re special. No typical insurance can cover the damage caused to a luxury classic car. They are collectibles, and as a collector of classic cars, you must understand the significance of having classic car insurance.

Classic cars cost a fortune because they are unique and are expected to be closer to the original manufacturer’s design, specification, and features. Even slight modifications to a classic car can cause its value to depreciate. Hence it’s important you have classic car insurance to protect such a valuable asset.

Now that you’ve decided to get classic car insurance, where do you go for help? Click here and you’d be redirected to an insurance advisor who will help you out.

What is Classic Car Insurance?

The word “Classic” can be used for a car when it is manufactured between the 1940s and 1970s. For the generalized models of cars or the commonly available cars, the insurer determines the insurance value by drawing a comparison with other models and the cost associated to repair the car.

Classic car insurance is also paid similarly, but contrary to typical car insurance, the maximum payout decided for an agreed value policy will not diminish for classic cars.

What is the Agreed Value of a Classic Car Insurance Policy?

It is vital to calculate an informed estimate of a collectible classic car’s value. The value is best determined by analyzing the supply and demand by comparing the historical sale prices or the prevailing price in the industry.

Besides, classic cars break all records when it comes to their value, and this is where the term “agreed value” comes into the picture. Of course, there are limitations, but the agreed value of a classic car is based on the conversation that you have with your insurer after an expert inspection.

So, if you have an emerging neoclassical car, then your insurer can offer you a fair price for your insurance policy that can cover your damage or repair expenses.

How is the Premium Calculated for Classic Car Insurance?

When you buy classic car insurance, you must know that the insurer considers a diverse range of factors for calculating the insurance premium. Some of the most vital factors that play a decisive role in determining the premium for classic car insurance include:

  • The age of the car – Itis determined by the proof of age of the vehicle verified by your classic car organizing body.
  • The potential cost of repairs and maintenance – These costs are necessary to keep the car in pristine condition. The insurer focuses on the possible costs of repairs and then calculates the premium.
  • The current value of the car – The value of a classic car in its current condition is a significant factor for calculating the insurance premium as there is no fixed market value for classic cars.
  • The cost of spare parts – Antique cars are rare, and so are their spare parts; they might not be easily available. Given their narrowed availability, the potential costs of spare parts also impact the insurance premium.

Perks of Classic Car Insurance

Being a classic car owner isn’t easy. Yes, you do get the benefit of showing off a snazzy car every time you drive through the streets. However, driving a classic car comes with its fair shares of woes as well. Knowing about everything including the nuts and bolts of the car when it is entirely different from other cars of the decade can be an uphill task.

However, when you interact with a classic car insurance company, you can rest assured that their agents and other staff are more aware of the requirements of a classic car.

Hence you wouldn’t have to go through the daunting experience of handling a classic car all on your own. This, however, is just the surface benefit. Other specialized perks of having classic car insurance include:

Roadside assistance

When you have an emergency roadside breakdown, car insurance provides you with the facility of towing your car with a flatbed tow truck so that no damage can occur while transporting it to a repair shop or back home.

Enhanced replacement cost

The best part is that if your collectible car increases in value beyond the agreed value, then your insurance coverage will pay for the difference.

Auto show medical reimbursement

The insurance also provides coverage even when your car is not available with you, for instance, when it is displayed at a car show. So, if damage occurs at any car exhibit or event, then you can get the money required for damage repair.

Cash settlement option

In case your car is stolen or totaled, you can take a cash payment without any setbacks.

Spare parts coverage

The car insurance also covers the theft or damage of spare parts such as valves, tires, or other gear according to the insurance terms.

Eligibility for Classic Car Insurance

Apart from the fact that classic car insurers need to do something special about their vehicle’s protection given their high value, advanced age, unique customization, etc., there are some other eligibility criteria for classic car insurance. For getting your classic car insured,

  • You must be at least 25 years of age or above.
  • Your vehicle must be in a suitable condition
  • It should not be used for daily commuting purposes
  •  It should not be used for racing purposes
  •  It shouldn’t be driven over 12,000 km in a year

What are the Collectible Car Types?

Classic car insurance is versatile enough to cover a wide range of vehicles. Depending on the insurance company, some types of cars that might be eligible for classic car insurance include:

  • Classic cars
  • Antique cars
  • Custom classic cars
  • Classic tractors
  • Exotic cars
  • Muscle cars
  • Race cars
  • 1980 and new collector vehicles
  • Retired commercial vehicles
  • Military vehicles, and much more


Indulge in the charm of owning a classic car without any concerns because classic car insurance is there to lighten your financial burdens in case of unfortunate damage to your car. Remember to get a complete insight into the terms and conditions associated with the classic car insurance policy.

Related posts

Find The Best Travel Insurance In Canada Here, According To Your Needs

Nehita Abraham

The Best Insurance Companies in Canada

Akarsh Shekhar

How to Value a Classic Car for Insurance?

Nehita Abraham