For many enthusiasts, a classic car is more than just a vehicle. It’s a piece of history, a labor of love, and maybe even a family heirloom. But owning a classic car comes with unique responsibilities, particularly when it comes to insurance. These cars often require specialized coverage that goes beyond what a standard auto policy can provide. If you want to protect your classic ride and its value, knowing how to properly insure it is key.

Here are seven steps to ensure your classic car gets the protection it truly deserves while safeguarding its worth.

1. Choose an Agreed Value Policy

One of the first things classic car owners should look for is an agreed value insurance policy. Unlike standard auto insurance, which uses the car's depreciated market value to determine payouts, agreed value policies ensure you'll receive a pre-determined amount if your car is totaled.

For example, if you and the insurer agree that your Corvette is worth $75,000, that exact amount will be paid out in the event of a total loss. This provides peace of mind that you’ll recover the car’s actual value, not some arbitrary estimate.

How to Set Your Car's Agreed Value:

  • Have your car appraised by a professional with experience in classic cars.
  • Provide detailed documentation of the car’s condition, including receipts for upgrades, restorations, and maintenance.

Why It Matters:

Classic cars often increase in value over time, making standard policies insufficient. Agreed value ensures you’re not left footing the bill if the unexpected happens.

2. Work with a Specialized Insurer

Not all insurance companies are created equal when it comes to coverage for classic cars. Specialists like Hagerty, Grundy, and American Collectors Insurance are known for offering tailored policies designed specifically for antique and collector vehicles. These providers understand the nuances of classic cars, from their value to their usage.

What to Look for in a Specialized Insurer:

  • Expertise in insuring vintage and collector vehicles.
  • Policies that cover restoration expenses, spare parts, and rare components.
  • Discounts for members of car clubs or owners who store their vehicles in secure facilities.

By partnering with a specialist, you’re working with a provider that fully appreciates the time, money, and effort you’ve put into your vehicle.

3. Understand Mileage Restrictions

Unlike your daily driver, a classic car often isn’t meant for everyday use. Specialized insurance policies reflect this by including mileage restrictions, which help keep premiums low while aligning with how these cars are typically driven.

Common policies allow for anywhere between 1,000 and 5,000 miles annually, though some insurers may offer options for occasional extended usage. If you’re using your car for anything other than leisure driving or car shows, ensure your policy’s mileage limitations won’t leave you unprotected.

Tip: Be honest about your usage habits when setting mileage caps. If you need more flexibility, talk to your insurer about increasing your yearly mileage limit.

4. Document Your Car’s Condition

Accurate documentation is essential when insuring a classic car. Not only does it help you set an agreed value with your insurer, but it also ensures you’re prepared if you have to make a claim.

What to Include in Your Records:

  • Photographic Evidence: Take clear, high-resolution photos of the car from all angles, including close-ups of the interior, exterior, and under the hood.
  • Maintenance Records: Keep track of oil changes, tune-ups, and other regular maintenance activities.
  • Restoration Details: If you’re restoring the car, document the process with before-and-after photos and keep receipts for every part and piece of labor.

5. Consider Coverage for Restoration and Spare Parts

If part of your passion for owning a classic car is restoring it to its former glory, then restoration coverage should be a top consideration. Many insurers offer restoration policies that provide protection for your car while it’s being worked on. This ensures you’re covered in case of a fire, theft, or damage during the restoration process.

Additionally, some providers offer spare parts coverage, which protects you financially if your hard-to-find components are stolen or damaged. For cars that require rare or vintage parts, this type of coverage can save you significant time and money.

How to Add Restoration Coverage:

Speak with your insurer before beginning a restoration project. Be clear about your plans and ask for a restoration policy that matches your specific needs.

6. Know the Policy Exclusions

Classic car insurance comes with many perks, but it’s just as important to know what isn’t covered. Most policies exclude regular commuting or everyday use, while others may not include certain types of damage (like wear and tear or gradual deterioration).

Common exclusions to watch for:

  • Damage from driving races or participating in timed events.
  • Improper storage leading to rust, pests, or weather-related damage.
  • Coverage voided by failing to follow the agreed usage terms.

Tip: Always review the fine print of a policy before signing. Make sure you understand any exclusions and ask questions if something isn’t clear.

7. Store Your Car Safely

The way you store your classic car can significantly impact its value and insurability. Most insurers require it to be stored in a locked, secure garage when not in use. Proper storage minimizes risks of theft, vandalism, and weather-related damage.

Storage Tips for Classic Cars:

  • Use a dehumidifier to prevent rust and mold in humid climates.
  • Invest in a high-quality car cover for added protection.
  • Keep the garage clean and pest-free to protect delicate components like wiring and upholstery.

Some insurers may even offer discounts for owners who go the extra mile with security, such as installing a monitored alarm system or advanced anti-theft devices.

Classic car owners invest significant time and money into their vehicles. Having the right insurance protects not only the car itself but also the financial resources and memories tied to it.