Classic cars are not required to have special car insurance. Many classic car owners add their cars to their regular insurance policy. Some owners decide to insure their cars under a classic car insurance policy, which pays a higher replacement value than does a regular insurance policy.
Classic car insurance provides liability, collision and comprehensive coverage, the same as a regular auto insurance policy. An added benefit of classic car insurance is that under this policy, auto owners are paid more for the replacement of their car based on the premise that the vehicle is a valuable classic or antique car. Regular auto policies pay based on the book value of the car, which may be a fraction of a car's worth if it is truly a well-maintained classic car.
Special insurance for classic cars tends to run 20 to 40 percent cheaper than a traditional car insurance policy, based on insurance company's assumption that classic car owners are likely to carefully maintain and drive their vehicles. Classic car insurance policies may have more stringent requirements than traditional car insurance policies. Owners may be required to house their vehicle inside a garage or be subjected to certain driving restrictions. Show cars may qualify for reduced insurance rates.