must include bodily injury liability, property damage liability, personal injury protection, property protection, and residual liability insurance.
Michigan classic car insurance: the basics
“Classic” is a broad, catch-all term used for a variety of collectible and/or high-value vehicles. Antique cars, modern muscle cars, historical vehicles, and high-value imports often qualify for classic car insurance in Michigan.
While insurance providers determine their own eligibility criteria for classic coverage, the state of Michigan offers these guidelines for what constitutes a historical car. It must:
Be at least 26 years old
Be owned solely as a collector’s item
Be registered with a valid historical license plate
If your car meets these criteria, you’re likely to qualify both for a classic or collector car insurance policy and historical plates in the Great Lakes State.
Michigan classic car insurance includes state minimum coverage
The minimum insurance coverage for a classic car in Michigan is as follows:
: Offers standard breakdown assistance, as well as specialized flat-bed towing services required for most classic and high-value vehicles.
Spare parts, tools, and memorabilia coverage: Adds coverage for spare parts, specialty repair and maintenance tools, and even collectible auto memorabilia, such as signs, automotive literature, and even vintage gas pumps.
Cash settlement and cherished salvage options: Allows classic car owners the option to keep their vehicle after a covered total loss and/or accept a cash payout with no repair or replacement requirements.
Insurance rates for classic car coverage usually average between $400 and $1,000 a year. As with traditional auto insurance policies, your classic car coverage premium will depend on a number of factors, including:
Your driving record
Your age and marital status
Your location
The amount of coverage and additional options you choose
Your vehicle's value
Classic car insurance premiums and deductibles tend to be significantly less expensive than the
for standard auto insurance policies for similarly-valued vehicles. This is largely thanks to lower risk provided by limited mileage and strict eligibility requirements.
What makes classic car insurance different?
Because classic cars in Michigan aren’t treated like everyday commuter cars, they have different insurance needs.
Classic cars are generally more expensive than commuter cars—not only due to their inherent value but also due to the cost of their parts
Vehicles that qualify for classic coverage don’t usually follow the same model for depreciation as standard vehicles—in fact, these cars often gain value over time rather than losing it
This leads to the single biggest difference between classic car and traditional policies: agreed value coverage.
Put simply, agreed or guaranteed value coverage is car insurance that’s based on the appraised value of your vehicle and the amount that your insurer guarantees they will pay if your classic car is deemed a total loss rather than fair market value.
In a traditional coverage scenario, insurance agencies use an equation that includes fair market value and depreciation to determine your car’s actual cash value for a total loss payout. This equation doesn’t apply with an agreed value policy—if you and your provider set your car’s value at $50,000, you’ll have peace of mind knowing that’s what you’ll get as a total-loss payout unless you adjust the value.
Let’s take a closer look at some of the factors that make classic car insurance unique from the insurance you buy for your everyday vehicle:
Price: Classic car coverage is usually less expensive than regular car insurance.
Limited use: Most classic car policies limit use to a specific number of miles per year. In some cases, your classic car policy may prohibit the use of the vehicle as a daily driver, and/or require you to insure another vehicle for daily use to qualify.
Storage: Many policies require the car to be stored in a secured, locked facility, such as a personal garage.
Condition: If the car isn’t in original condition, or restored, it must be undergoing restoration.
Keep in mind: As with any type of insurance, your premium will be based not only on the vehicle's value but also on a variety of highly individualized factors.
Do I need classic car insurance?
Classic car insurance is ideal for classic, collector, and other high-value car owners who use their rare or vintage vehicles for the occasional pleasure driving, or to display them in parades or car shows.
If you have any of the following, you’ll likely need specialty coverage:
Antique and classic cars
Vintage boats
Modern collector vehicles
Modified vehicles
Classic trucks and utility vehicles
Motorsports vehicles
Vintage motorcycles and scooters
Retired commercial vehicles
Collector trailers
Vehicles under construction
Classic military vehicles
Antique tractors
Numerous factors impact the cost of classic car insurance in Michigan
—but as with any policy, several factors affect the overall cost of your premium:
Model year—certain model years have more value than others.
Stated or guaranteed value—if your car is worth more money, it’s going to be more expensive to insure.
Mileage—the more you drive the car, the more expensive coverage will be. While Michigan allows full usage of historical vehicles in August, it’s best to err on the side of caution and avoid driving it as much as possible.
Customization—if you add on additional coverage such as roadside assistance or parts coverage, your policy will be more expensive.
from multiple providers, then compare your options.
The best providers for classic car insurance in Michigan
While many insurers offer classic policies, the best providers tend to specialize in the products and services drivers need for their collector vehicles.
Luckily, many of these specialty providers underwrite policies for major auto insurance companies, too—so you might be eligible for bundling discounts.
To help with your decision, we’ve scoured the options and listed our favorites:
Provider
Why we love it
Hagerty
A+ BBB rating and 4.4 stars on Trustpilot
Offers coverage for restoration projects at all stages
In-house “carcierge” to help you find replacement parts for your vehicle.
One of the few traditional providers that underwrites its own classic and collector car policies, streamlining signup and service, and increasing bundling options
Agents available 24/7
How to keep your classic coverage rates low
Classic cars already tend to be some of the cheapest vehicles to insure. With these tips, you can be sure you’re saving every penny possible:
Each of these tips can help you secure a lower rate, but getting the best rate on the best coverage means comparing car insurance quotes from multiple providers. With
, America’s AllCar™ app, comparing rates from dozens of top providers takes minutes—plus it’s free!
FAQs
How old does a car have to be in Michigan to be considered a classic?
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In Michigan, as in many states, your car’s age has less to do with its status as a classic than with its designation as a historical vehicle. To be designated a historical vehicle in the Great Lakes State, your car must be:
At least 26 years old
Owned solely as a collector’s item
Registered with a valid historical license plate
“Classic,” on the other hand, is a broad, catch-all term used for a variety of collectible and/or high-value vehicles. Antique cars, modern muscle cars, and high-value imports often qualify as classics in Michigan, as do historical vehicles.
What’s the best insurance for a classic car?
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Specialty providers like Hagerty, Grundy, and American Modern offer some of the best classic and collector car insurance. However, classic car owners can also find solid protection with policies from mainstream insurers like Safeco, and State Farm.
Are classic cars cheaper to insure?
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Yes, classic car insurance policies are often cheaper than policies for standard vehicles. However, classic coverage also tends to be much more restrictive on vehicle usage than traditional coverage.