USAA Classic Car Insurance
USAA offers classic car insurance to certain collectible vehicles. It covers up to the vehicle’s full assessed value in damages.
Written by Shannon Fitzgerald
Reviewed by Hillary Kobayashi
USAA
partners with American Collectors Insurance to offer classic car insurance
coverage to eligible collector cars. This generally covers up to a classic vehicle’s full assessed value in damages, rather than its depreciated cash value as is standard in most auto insurance policies.If you’ve got a vintage model hanging out in your garage, chances are you won’t need the same type of coverage you have for your daily driver. Luckily, military professionals and their families can add collector car insurance to their existing USAA
auto insurance
policy—but what sort of protection does this insurance include? Let’s take a look! Does USAA offer classic car insurance?
Yes! USAA allows qualifying military members to protect their collectible vehicles with classic car insurance. This specialized insurance comes through USAA’s partner, American Collectors Insurance, and provides agreed-value coverage on certain exotic, modified, or antique cars and motorcycles.
As with most classic car insurers, USAA sets limitations on which vehicles and drivers are eligible for coverage. Namely:
- Your annual mileage must be less than 7,500 miles a year
- Your car must be driven solely for pleasure (not for commuting)
- Your vehicle must have collectible value
- Your vehicle CANNOT be used for racing, timed events, or driver’s ed
- Your vehicle must be stored in a secure, enclosed structure, like a carport (in a gated community or base), private storage unit, or airplane hangar
- You must have agood driving recordwith no more than one moving violation or at-fault accident in the last three years
- You must have a valid driver’s license with at least five years of driving experience
If you forget to add your classic car to your USAA policy, you can, fortunately, benefit from up to $100,000 of automatic coverage for 30 days. That said, USAA determines whether a vehicle qualifies for classic car insurance on a case-by-case basis, so you’ll want to contact an insurance agent to discuss your coverage options sooner rather than later.
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What is classic car insurance coverage?
Let’s say you and that vintage
Mustang
you snagged at an auction qualify for classic car insurance with USAA—what sort of coverage can you expect?Unlike an actual cash value policy or standard car insurance, classic car insurance bases your vehicle’s worth on an agreed value, which is calculated through an individual assessment of your car’s condition and rarity (rather than its fair market value).
By doing so, your insurance payout in a total loss event accounts for your classic car’s appreciation—allowing you to collect its full worth with no depreciation (minus any deductibles).
In most cases, classic car insurance gives both
collision
and comprehensive coverage
to your classic vehicle based on its agreed value. You will also typically get liability coverage
that matches your standard policy’s coverage—usually, each driver must have a standard car insurance policy with a regular car in order to secure classic car coverage in the first place.Some classic car insurers, like American Collectors Insurance, offer the option to purchase additional coverages, like spare parts coverage or
roadside assistance
(USAA refers to this as TLC or Towing and Labor for Collectors). Depending on your state’s insurance requirements
, uninsured motorist coverage
, personal injury protection
, or MedPay
may also be included in your classic car insurance policy.MORE: Classic car insurance in Texas
How much is a USAA classic car insurance policy?
Insurance quotes for a USAA classic car insurance policy vary depending on a few factors, like your age, your vehicle’s assessed value, and the deductibles you decide on. As a whole, though, car insurance rates for a classic car are less expensive than a standard rate for a similarly-valued vehicle—as much as 36% less in some cases.
USAA standard insurance rates tend to be lower than the national average, as well. Therefore, with a good driving record and credit score, you can loosely expect to spend between $700 and $1,000 annually on your classic car.
To get the most accurate price for your specific situation, however, you’ll need to speak with a USAA agent to have your classic car’s value appraised. The more your car’s agreed value, the higher your rates will be (and vice versa). USAA also offers tiered mileage plans of up to 2,500, 5,000, or 7,500 miles. The more mileage you include, the more you pay.
To secure even lower car insurance rates for your classic car, you can always try optimizing USAA’s discount perks—like
bundling your homeowners and auto insurance
. It’s also never a bad idea to compare quotes
from multiple insurers to determine what your most competitive premium might be.Who should get classic car insurance?
If you own a vintage
Challenger
that’s stored securely, valued highly, and only gets driven in car shows or parades, it’s pretty clear that classic car insurance is your best coverage option. But USAA policyholders with other types of vehicles may also benefit from classic car insurance.Here are a few common vehicles that car owners protect with classic car coverage:
- Antique vehicles—including muscle cars, restored cars, and custom cars
- Modified vehicles—including hot rods, street rods (no longer racing), and restomods
- Exotic cars—including kit cars, replicas, extreme luxury cars, and sports cars
- Special interest vehicles—including retired military vehicles, farm tractors, and historic motorcycles
Bottom Line While your vehicle’s insurance eligibility is ultimately decided by your insurer, any collector vehicle that is not a daily driver, accrues value over time, and is stored in a secure, private area will most likely benefit from classic car insurance.
What other car insurance companies offer classic car insurance?
USAA’s partner, American Collectors Insurance, isn’t the only classic car insurance company out there. In fact, several major car insurance providers offer their own classic car coverage or team up with a classic car insurance agency that does.
Some of the more well-known classic auto insurance companies include:
MORE: How to cancel Grundy classic car insurance
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Are classic car insurance rates cheaper than regular auto insurance?
Yes. You can generally expect classic car insurance rates to be much cheaper than standard car insurance rates. This is because classic vehicles aren’t driven as frequently and are stored in a sheltered space that is free from the outdoor elements—making it much less likely they’ll be damaged.
That said, the higher a classic car’s appraised value, the pricier its premiums will be. Therefore, an extremely rare Rolls-Royce model may end up racking up a steep insurance rate even as a classic vehicle.
How old does a vehicle have to be to qualify for classic car insurance?
It’s ultimately up to the insurer to determine whether or not a vehicle is old enough to be considered “classic” and eligible for classic car insurance. However, in most cases, vehicles need to be at least ten years old to qualify, with the average classic car ranging between 20 and 40 years old.
Because cars can be considered classic for their modifications or exotic interest, however, it’s not uncommon for vehicles under 20 years old to be accepted for classic car coverage, too.
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