Get the best classic car insurance quotes today

If you've ever seen a car show in your area, flooding the streets with all beautiful, historic, and vintage cars, you might assume they're all collector cars. However, for car insurance, older automobiles fit into 3 unique categories: antique, collector, and classic – and each one has its own type of car insurance.

According to the Classic Car Club of America (CCCA), a classic car is defined as a "fine" or "distinctive" automobile – American or foreign built – manufactured between 1915 and 1948." The classic car definition means they're often older than an antique car.

A classic car can't have been mass-produced. Instead, a classic car was built in limited quantities and was high-priced when first manufactured.

Other factors, including engine displacement, custom coachwork and luxury accessories, such as power brakes, power clutch, and "one-shot" or automatic lubrication systems, help determine whether a car is considered a classic or not.

Now, The Vintage Car Club of Canada says a classic car is 25 years or older. The Antique and Classic Car Club of Canada says they need to be 20 years or older. With that in mind, know each insurance company may differ on which cars they include under their classic car insurance coverage. If your vehicle doesn't qualify for classic car insurance, consider antique car insurance or collector car insurance.

Why classic car insurance is different

Classic cars, along with antiques and collector cars, are not your average vehicle. In addition to being from a different era, they don't follow the typical path of a standard car's value. Whereas your everyday car depreciates when it leaves the car lot, a classic car (if kept in reasonable condition) will rise in value.

Because of the lack of depreciation, how standard cars are insured does not apply to classic cars.

Under normal circumstances, an insurance company agrees to a "Stated Value" less depreciation, if the typical car is stolen or damaged beyond repair.

With classic cars, the insurance company uses an "Agreed Value," which does not include depreciation. Both you (the insured party) and the insurance company must agree to the Agreed Value before ensuring the vehicle. (And depending on the insurance company and the make of the car, they may also require an independent appraisal).

There's another reason that classic cars need their own insurance: the cost of repairs. Repairs are incredibly expensive for these vehicles because many parts are not mass-produced or easy to source. For this reason, classic car insurance typically comes with a "Spare Parts" coverage.