Maximize Your Coverage: The 5 Costliest Mistakes in Classic Car Insurance

Revving up the excitement of owning a classic car is one thing, but protecting that investment? That’s a whole different ride. Classic cars are more than just metal and paint – they’re cherished pieces of history, often representing years of hard work and passion. However, navigating the world of classic car insurance can be tricky terrain. One misstep could leave you with costly consequences that hit harder than a flat tire on the open road.

In this post, we’ll steer you clear of the five most common—and costliest—mistakes classic car owners make when it comes to their insurance coverage. Buckle up as we guide you through these pitfalls to ensure your prized possession gets the protection it truly deserves.

Using Standard Auto Insurance Instead of Classic Car Coverage

This is the big one. A lot of new classic car owners think, “It’s a car, so I’ll just add it to my regular policy.” Wrong move. Standard auto insurance is designed for vehicles that depreciate, not ones that go up in value or get babied in the garage. Classic car insurance uses something called “agreed value” coverage, which means you and the insurer agree on the value of the car up front. No guessing. No arguing. No surprise payouts if something happens.

Alex Manos classic cars, for example, are going to be worth way more than your late-model Toyota. If you use regular insurance and your car is totaled, you could get far less than its worth. Think Craigslist pricing when you were expecting Barrett-Jackson.

Underestimating the Value of the Car

Let’s say you got a great deal on your car or you restored it yourself. Cool. But if you don’t update your insurance to reflect the current market value, you could be in trouble. Classic car values can climb fast, and if you’re still insured based on what you paid, or worse, what it was worth five years ago, you’re leaving money on the table. Make sure your policy reflects your car’s true worth. If it’s appreciated, update your agreed value regularly. Don’t let the insurance company set the value without your input.

Driving Like It’s Your Daily (and Not Reporting It)

Classic car insurance typically comes with mileage limits and restrictions. If you’re using your classic for commuting or daily errands and you don’t tell your insurer, you might void your policy entirely. Most companies allow occasional pleasure driving and car shows, but not daily use. That’s a no-go unless you’re upfront about it (and prepared to pay more). Bottom line: Be honest about how you use the car. The rates are cheaper because the risk is lower. Don’t ruin that by sneaking in weekday grocery runs.

Skipping Specialty Add-Ons

You might think you’re saving a few bucks by keeping your policy basic, but not adding coverage for spare parts, towing, or custom modifications can cost you more in the long run. If you’ve got rare trim pieces, a rebuilt engine, or even just a custom paint job, make sure it’s all documented and covered. Some companies even offer coverage for tools or parts stored in your garage. It’s worth a call to your agent. Trust us—custom gear isn’t cheap to replace.

Choosing the Wrong Insurance Company

Not every insurer knows how to handle classic cars. If your agent doesn’t understand the difference between a ’68 Mustang Fastback and a ’68 Mustang Coupe, it’s time to find someone who does. Look for companies that specialize in collector vehicles. They know the market, they understand your needs, and they’re more likely to offer flexible coverage that makes sense for how you use the car.

Insuring a classic car isn’t complicated—but it is different. A little extra homework now can save you a lot of money and frustration down the road. Your classic car is more than just metal and chrome—it’s an investment, a passion project, and probably one of your favorite things to drive. So don’t cut corners when it comes to protecting it.…