Quick answer: Classic and collector car policies use agreed value (also called guaranteed value). You and the insurer set the payout up front, so there is no depreciation fight after a total loss. Mileage is limited, storage matters, and documentation is everything.
What counts as a classic or collector vehicle
- Age and rarity: Typically 20–25 years old, or newer limited-production, exotics, or replica builds.
- Condition: Good to excellent condition; some carriers require photos and an appraisal for higher values.
- Usage: Not a daily driver; mileage caps like 3k–7.5k miles/year are common.
- Storage: Locked garage or dedicated storage unit; street parking often disqualifies you.
- Driver profile: Clean records help; one minor violation may be allowed but DUIs and reckless driving are usually disqualifiers.
If you daily a vintage truck to work, you may need a standard policy. To stay eligible for specialty coverage, keep a regular-use vehicle on a separate policy and use the classic for events, weekend drives, and shows.
How agreed value works (and why it matters)
With agreed value, you choose a payout number with the insurer before the policy starts. If the car is totaled or stolen, you receive that amount (minus any deductible) without depreciation haggling. This is very different from actual cash value on standard policies, which subtracts wear-and-tear and market depreciation.
Tips to set the right agreed value
- Use auction comps, valuation guides (Hagerty, CPI), and recent sales for your model/year.
- Include restoration receipts, provenance, and option codes that add value.
- Revisit the number annually—values can move quickly for certain eras and trims.
Coverages tailored for classics
- Agreed value for total loss—no depreciation argument.
- Flexible repair: Choose your shop; OEM or period-correct parts often allowed.
- Spare parts: Coverage for parts stored in your garage, often $500–$2,500 included.
- Trip interruption: Lodging/towing if you break down at a show or rally.
- Roadside for classics: Flatbed towing and low-clearance assistance.
- Cherished salvage: Some policies let you retain the salvage after a total loss.
Usage and mileage rules
Insurers price classic car policies assuming limited, careful use. Typical requirements:
- Mileage caps (3k, 5k, or 7.5k miles/year). Some carriers sell mileage “bands.”
- No daily commute; occasional work visits may be allowed if pre-approved.
- Stored in a locked garage when not in use; some underwriters allow car condo or private storage units with alarms.
- All household drivers must have another primary vehicle and insurance.
Exceeding mileage or using the car daily can void coverage. If you plan a long rally, notify your insurer; many will extend mileage temporarily.
Pricing factors you can control
Helps lower premium
- Higher deductibles on collision/comprehensive.
- Garage with alarm, cameras, or GPS recovery device.
- Driver training certificates or club memberships (AACA, PCA, BMWCCA).
- Shorter mileage band (e.g., 3k instead of 7.5k miles).
Drives price up
- Prior at-fault accidents or violations.
- Parking on-street or in open carports.
- Very high agreed values without alarms or tracking.
- Frequent rallies or track events (often excluded unless endorsed).
Documentation to keep on file
Insurers love paper trails. Create a simple folder (digital and physical) with:
- High-resolution photos (exterior, interior, engine bay, undercarriage).
- Appraisal or valuation letter if value is above typical market.
- Restoration receipts and parts invoices.
- Proof of secure storage (garage photos, alarm invoices).
- Maintenance records to show care and condition.
How to quote in 20 minutes
- Gather VIN, mileage, photos, and a target agreed value based on comps.
- List where the car is garaged and typical annual mileage.
- Decide on deductibles and whether you want cherished salvage.
- Get 3 quotes: a specialty classic carrier, a mainstream carrier’s classic program, and an independent agent.
- Ask for a valuation review every 12 months to keep agreed value current.
Claims and repairs
If you have a claim, specialty carriers often let you pick a shop familiar with vintage vehicles. Ask about:
- OEM or period-correct parts allowances (important for older badges, glass, and trim).
- Time for parts sourcing—some repairs take longer; confirm rental or trip interruption coverage.
- Whether you can retain salvage after a total loss if state law allows.
Avoiding pitfalls
- Do not understate mileage; if you exceed the band, call your carrier to adjust.
- Do not daily drive the car to work or school; use your primary vehicle for errands.
- Tell your carrier before track days—most policies exclude timed events without a track-day endorsement.
- Update the agreed value after major restoration work or market jumps.
Specialty classic car policies deliver better payouts, flexible repairs, and perks designed for collectible vehicles. Keep mileage low, store the car securely, document its condition, and revisit the agreed value annually so your coverage keeps pace with the market. The right policy lets you enjoy shows and weekend drives without worrying that a claim will erase years of restoration work.