In the event of a claim, Classic Car Insurance usually covers your collectible vehicle for a guaranteed value agreed upon between the owner and the insurance company. The value of the vehicle is based on respected collectible car valuation guides like Old Cars Report Price Guide or from an appraisal by a professional.

Normal vehicles depreciate over time while collectibles generally increase. This is the reason why collectible car insurance policies have a guaranteed value while normal auto insurance only pays the actual cash value.

Classic Car Insurance: Usually vehicles between 19 and 24 years old that are restored and in good working order that generally have a higher than average value of comparable vehicles of the same make and model year.

Antique Car Insurance: Vehicles that are manufactured at least 25 years old and in good working original or original restored condition.

Modified Car Insurance: Defined to include vehicles that are significantly modified or altered in its engine, body, chassis or interior from its original condition which can either increase or decrease its value. Some insurers will not cover these types of vehicles.

Kit Cars and Replicas: Vehicles that are at least 24 years old with separate manufactured components or that are reproductions of original factory vehicles.

Classic Car Insurance Policies do come with some special requirements. The classic auto must not be a daily driver or the primary driving vehicle. Additionally, policies usually have limitations on the amount of miles that can be driven annually (usually not more than 7500 miles). Policyholders are restricted to using their classic car only for pleasure or a hobby related activity.

There can be restrictions on the driver as well. The driver may need to be 25 years or older and have a good driving record with at least 5 years of experience driving. They should not have more than a single at-fault accident or moving violation with the previous three years.

Insurance companies can also place restrictions on classic cars that they be protected in a fully enclosed garage or storage facility and that another vehicle is owned that will be the primary car that is driven daily.