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What is Classic Car Insurance?

In India, it is mandatory to have car insurance to be able to drive your car on public roads. Not having car insurance can lead to hefty fines and penalties, or even imprisonment. However, this is not the only reason why you should invest in a car insurance policy. Motor insurance policy will protect you in the face of a mishap involving your vehicle. It will cover the cost of third-party liabilities, and also cover own damage, depending on the kind of policy.

There are many types of car insurance policies available in the market. You must choose a policy based on your coverage needs and budget. If you have a very old car, say something over 25 years old, then you must get a special insurance type called “classic car insurance”. A well-maintained car that is older than 25 years is called a classic car. Many car lovers like preserving old models of cars by maintaining them in excellent condition and not taking them out for regular use. These cars have significant historical or collector value. Cars like these are very valuable and are protected by special insurance coverage called classic car insurance. Unlike regular car insurance, classic car insurance has features specifically designed for classic cars.

Benefits of insuring your classic car

Using and maintaining a car is not easy. With the increasing risk of road accidents and ever-rising car repair and spare parts costs, not having insurance can cause a big dent in your pocket. Let us not even get into the legal hassles you will face if caught without a valid insurance policy.

Similarly, to protect your classic car from unexpected mishaps or theft, you must secure it with a car insurance policy. First and foremost, a standard insurance policy may not be relevant for a classic car. The coverage it offers may prove inadequate to protect your classic car in the event of a mishap. Secondly, classic cars often require specialised repair work and spare parts. A classic car insurance policy can help to cover these costs. Furthermore, classic car insurance policies often provide exhaustive coverage such as agreed-value coverage at a lower premium compared to a standard car insurance policy. Overall, classic car insurance offers peace of mind and protection for your classic car. It makes sure that your car is taken care of in the event of an accident or loss.

Classic car insurance coverage

A classic car insurance policy typically offers similar coverage as a regular car insurance policy. The coverage includes third-party car insurance under which any injury or damage caused to a third-party person or property is covered. In addition, like comprehensive insurance, classic car insurance covers damages to your classic car in the case of an accident or theft.

But that is not all. Classic car insurance offers extra benefits that are not covered by a standard car insurance policy. For example, most classic car insurance policies cover the agreed value of your car rather than its actual market value. It means that if your classic car is damaged beyond repair, you will receive the agreed value in full rather than a reduced amount based on the market value of your car at the time of the loss.

Besides, classic car insurance allows you to use your classic car for events, shows, and rallies. This type of use is typically excluded from a regular car insurance policy. Standard car insurance focuses on regular use and wear and tear of the vehicle.

Classic car insurance cost vs. standard car insurance policy cost

The standard car insurance premium cost depends on several factors such as the brand, make, and model of the car, its market value, and the driver’s driving history. These factors have a direct impact on the chances of you raising a claim and the claim settlement amount. While some of these factors such as driver profile and history may seem redundant in the case of a classic car, still its brand, make, model, condition, and value will affect the cost of insurance premiums.

Usually, a classic car insurance policy is cheaper than standard insurance due to the reduced risk of taking it out on the roads and facing an accident or a road mishap. Most classic cars are prone to theft or deterioration due to a lack of appropriate maintenance. This can lead to increased repair costs. A classic car insurance policy considers all these factors and offers relevant coverage to the policyholder.


A classic car insurance policy is a smart investment for anyone who owns a classic car. It provides similar coverage as a regular car insurance policy with added benefits tailored to meet the needs of classic cars. Do not leave your classic car unprotected because you are not using it for the daily commute or regular drives. Instead, take extra care by covering it with a robust classic car insurance policy and let it be one of your priced possessions. After all, not everybody has a classic car.

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