Why It Pays to Review Your Classic Car Insurance Policy: A Veteran Agent’s Advice

 

If you’re like most classic car enthusiasts, your vehicle is more than just transportation—it’s a legacy on wheels. Whether it’s a 1967 Shelby GT500, a vintage Porsche 356, or a lovingly restored Chevy Bel Air, your classic car represents countless hours of passion, elbow grease, and probably more than a few late nights in the garage.

But here’s a question that often gets overlooked: When was the last time you reviewed your classic car insurance policy? If the answer is, “Not since I bought the car,” then you could be at risk of being underinsured—or worse, facing major out-of-pocket expenses if something unexpected happens.

After over 20 years in the insurance business, I can tell you this: reviewing your policy regularly—at least once a year—is one of the smartest things you can do to protect your investment.

1. Classic Cars Appreciate, Not Depreciate—And That Matters

Unlike your daily driver, a classic car typically increases in value over time. According to Hagerty, a leading classic car insurer, the market for collectible cars has outpaced even the S&P 500 over the past decade in certain segments. 1 That 1970 Dodge Charger you bought for $30,000 five years ago? It might be worth $50,000 or more today.

However, if your insurance policy is still based on the vehicle’s old value, you’re taking a big gamble. Most classic car insurance policies use “agreed value” coverage—this means you and your insurer agree upfront on what the vehicle is worth. But unless you review that agreed value regularly, you may be locked into outdated figures that don’t reflect the car’s true current value.

Takeaway: A regular policy review ensures your agreed value coverage keeps pace with appreciation.

2. Modifications, Upgrades, and Restorations Change the Game

Another reason to review your classic car insurance is to account for any modifications or upgrades. Whether you’ve added a custom paint job, swapped out the original engine for a crate motor, or installed high-end suspension components, these changes can significantly affect your car’s value—and its insurability.

Some insurers won’t cover aftermarket upgrades unless they are documented and added to the policy. If you've spent thousands on restoration work and haven’t updated your insurer, those investments may not be protected in the event of a claim.

Tip: Keep detailed records and receipts of all work done. Bring these to your insurance review to ensure your coverage reflects your investment.

3. Usage and Storage: Things Change Over Time

Many classic car insurance policies include usage restrictions—like mileage limits or stipulations that the car won’t be used for daily commuting. But what if your habits have changed?

Maybe you’re entering more weekend rallies, joining classic car tours, or just enjoying more Sunday drives. Or perhaps you’ve moved and your vehicle is now stored in a more secure garage, which could actually reduce your premiums.

A policy review gives you the opportunity to reassess these details and ensure they align with your current lifestyle. Misrepresenting usage, even unintentionally, could result in a denied claim.

4. Policy Features Evolve—And Often for the Better

Insurance isn’t static. Over the years, many insurers have added new features and optional endorsements that could benefit classic car owners. For instance, some now offer:

  • Spare parts coverage

  • Automotive memorabilia protection

  • Inflation guard endorsements

  • Roadside assistance tailored to classics (including flatbed towing)

If your policy was written 10 years ago, it may be missing out on coverage enhancements that could make a big difference.

During a review, your agent can walk you through these options, helping you fine-tune your protection to match your needs.

5. Life Changes = Insurance Changes

Big life changes—like marriage, retirement, a move to a different state, or the acquisition of additional vehicles—can all impact your insurance needs. For example, moving from Arizona to Florida might expose your car to different weather risks like hurricanes or humidity-related damage.

Or, if you’ve just retired and plan to drive the car more often, that’s a change in usage pattern your insurer needs to know about. A review ensures your policy remains in sync with your current life stage and goals.

6. Avoid Coverage Gaps Before It's Too Late

Too many times I’ve seen classic car owners wait until disaster strikes to examine their policy. At that point, it’s too late to fix gaps in coverage.

In one case, a client had purchased a 1969 Camaro Z/28 and insured it with a standard auto policy—not a classic car insurance policy. When the vehicle was totaled in a fire, the claim was paid based on actual cash value (ACV), which didn’t come close to covering the true worth of the vehicle. A simple review and switch to an agreed-value policy could have made all the difference.

7. It’s Quick, It’s Free, and It Brings Peace of Mind

Perhaps the best part? A classic car insurance review typically takes less than 30 minutes, and it doesn’t cost a dime. Most agents, myself included, offer these reviews free of charge.

During your review, we’ll walk through:

  • Your current vehicle value

  • Modifications or restorations

  • How you use and store the vehicle

  • Policy enhancements or discounts

  • Opportunities to consolidate with home or umbrella policies

You’ll leave the review with the peace of mind that comes from knowing your prized possession is properly protected—without paying for more coverage than you need.

Final Thoughts: Your Classic Deserves Better Than a “Set It and Forget It” Policy

Owning a classic car isn’t a casual hobby—it’s a commitment, a passion, and for many of us, a lifelong dream realized. So why leave its protection to chance?

A policy review is your opportunity to ensure that your classic car insurance works as hard for your vehicle as you do. Markets shift, cars appreciate, and life changes. Keeping your policy current is not just a good idea—it’s essential.

So before the next car show or weekend cruise, give your insurance agent a call. Schedule that review. Because nothing feels better than knowing your classic is safe, covered, and valued—just like it deserves to be.

1 Hagerty Market Trends (2023), https://www.hagerty.com/media/market-trends

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