Insurance Curator Classic car ownership is more than transportation — it’s investment, hobby and heritage. Finding the right insurance for a collectible vehicle in the USA means understanding agreed value policies, storage coverage, and show/event protection. This guide explains what to buy, how much it costs, and which insurers and coverages to consider for common markets like Los Angeles, CA and Austin, TX.
Why classic-car insurance is different
Classic cars are insured differently from everyday autos because:
- They typically have agreed (stated) value instead of actual cash value (ACV).
- They often have limited use (garage-kept, hobby miles), which lowers risk.
- Restoration, rarity and original parts affect valuation and repair options.
- Many owners need show & event and storage protections not included in standard policies.
Agreed-value policies pay the pre-determined amount agreed between you and the insurer in the event of a total loss — no depreciation disputes.
Key coverages explained (and when you need them)
Agreed Value
- What it is: Insurer agrees in advance on the car’s value (typically based on appraisal or accepted valuation guides).
- Why it matters: Eliminates depreciation disagreements after a total loss.
- How to get it: Provide photos, receipts, appraisal and a vehicle history; many carriers require a professional appraisal for high-value cars.
Storage (Physical Loss in Storage / Garage Kept)
- What it covers: Protection while the vehicle is in long-term storage — theft, fire, vandalism, flooding (may be limited) and damage while stored.
- Typical terms: Policies may require a secured, private garage and reduced mileage clauses.
- Tip: Document storage conditions (photos, alarm, address) to qualify for discounts.
Show, Rally and Event Coverage
- What it covers: Liability and physical damage while participating in shows, parades, rallies or concours events.
- Limits: Some policies include limited event coverage; others require endorsements for higher-risk events.
- Important: Confirm whether driving to/from a show is covered and whether towing to a show is included.
Spare Parts / Restoration Coverage
- What it covers: Parts while in transit or stored for restoration, and replacement costs for NOS/rare parts.
- Why it’s important: Classic car parts can be expensive or impossible to replace; verify agreed-value for parts or included limits.
Who offers classic car insurance (US companies & typical pricing)
Top insurers for collector vehicles include Hagerty, Grundy/Hagerty, American Modern (now part of Munich Re), and select endorsements through large carriers (State Farm, Allstate, Progressive). For specialized coverages and agreed value, dedicated classic insurers usually provide the most targeted options.
Estimated annual premium ranges for a well-kept, restored 1965 Ford Mustang used as a hobby car (garaged, 3,000 miles/year), examples:
| Insurer | Los Angeles, CA (estimate/year) | Austin, TX (estimate/year) | Notes |
|---|---|---|---|
| Hagerty | $400–$700 | $350–$600 | Focused on collector cars; offers agreed value, show and storage options. |
| American Modern | $450–$800 | $400–$750 | Strong restoration coverage and parts protection. |
| State Farm (collector endorsement) | $650–$1,100 | $600–$1,000 | Available via agent; broader agent network but varies by state. |
Estimates are representative ranges for typical collector profiles and should be verified with quotes. Nationwide and specific factors (age, modifications, security) change pricing materially. See source estimates and market overviews below for detailed guidance. (Sources: Hagerty, Bankrate, Insurance Information Institute.)
How much does classic-car insurance cost? (US averages & where to expect variance)
- Nationally, collectors generally pay $200 to $1,200 per year depending on vehicle value, usage, and storage. Specialty insurer data show many restored classics fall in the $300–$800/year band for agreed-value policies with limited-use restrictions.
- Location matters: California (Los Angeles) often commands higher premiums due to theft and repair costs; Texas (Austin) may be lower but flood risk and local theft trends can raise rates.
- Factors that raise premiums:
- High agreed value
- Frequent show participation or commercial use
- Poor storage/security
- Young drivers listed on policy
- Factors that lower premiums:
- Secure, private garage storage
- Low annual mileage
- Usage restrictions (pleasure-only)
- Multi-car or multi-policy discounts
Sources consulted for market figures: Hagerty’s classic car insurance guide, Bankrate’s classic car insurance cost article, and Insurance Information Institute overviews. See links at the end.
How to get an accurate agreed value and pass appraisal checks
- Use accepted valuation sources: Hagerty Valuation Tool, NADA Collector, or professional appraisers.
- Keep documentation:
- Bills of sale, restoration receipts, photos before/after work
- Appraisals dated within insurer’s required timeframe (often 12–24 months)
- Negotiate agreed value with insurer and confirm it in the policy declarations.
Buying decisions by state — example focus: California and Texas
- California (Los Angeles): Higher theft & repair costs — insist on strong agreed-value plus comprehensive storage endorsements. Compare dedicated classic insurers and local independent agents. Consider higher limits for items like spare parts and trailer coverage if you tow to shows.
- Texas (Austin): Lower base premiums in many markets, but check flood/storm exclusions for stored vehicles. If you store outdoors or in a non-elevated area, consider additional flood coverage or higher comprehensive limits.
- For broader coverage comparisons: Best Insurance For Cars: Complete Guide to Choosing Between Full Coverage and Liability
Practical tips to lower premiums and avoid coverage gaps
- Limit mileage and use the vehicle only for hobby driving or approved events.
- Install monitored alarm systems and document the garage/storage address.
- Bundle policies (home + collector) if carrier offers discounts.
- Keep receipts and log maintenance/restoration for valuations.
- Ask for “show” and “rally” endorsements before participating in high-risk events.
- Compare specialty insurers (Hagerty, American Modern) with large carriers that offer collector endorsements (State Farm, Allstate) to ensure you aren’t missing restoration-specific protections.
- Compare providers in detail: Best Insurance For Cars by Provider: Comparing GEICO, State Farm, Progressive and USAA
Claims & repairs — keep these in mind
- Choose a policy that allows repair by specialized shops with classic-car experience or provides reimbursement for meeting original-spec restoration.
- For total loss, ensure the agreed-value payout accounts for sale/consignment fees and rarity premium if applicable.
- Document everything pre-loss — photos, appraisals, receipts — to streamline claims.
Quick comparison: When to choose a specialty insurer vs. mainstream carrier
| Decision Factor | Specialty Classic Insurer (e.g., Hagerty) | Mainstream Carrier (e.g., State Farm) |
|---|---|---|
| Agreed value expertise | High — designed for collectors | Possible — via endorsement, varies by agent |
| Show/event coverage | Standard options and endorsements | Offered but often limited |
| Restoration/parts coverage | Tailored options | May be limited or require riders |
| Price | Competitive for collectors | Can be higher or lower depending on discounts |
| National agent network | Smaller; collector-focused | Large agent network, broader product suite |
Sources and further reading
- Hagerty: How much does classic car insurance cost? — https://www.hagerty.com/media/insurance/how-much-does-classic-car-insurance-cost/
- Bankrate: Classic car insurance cost guide — https://www.bankrate.com/insurance/car/classic-car-insurance-cost/
- Insurance Information Institute — classic car insurance basics — https://www.iii.org/article/classic-car-insurance-basics
If you’re ready to get covered, start with targeted quotes from a specialty insurer (Hagerty, American Modern) and a mainstream carrier in your state (State Farm, Allstate) — compare agreed-value amounts, storage and show endorsements, and get appraisals in writing before finalizing coverage.