Classic Car Insurance Market Report: Insights and Forecast (2019-2029)

Classic car insurance is gaining significance because individuals worldwide are collecting and preserving rare old cars. These aren't just any old cars but treasures of history and should be given special care.

The classic car insurance market is expanding in large proportions between 2019 and 2029. In 2022, the market was valued at $30.97 billion, and analysts estimate that it will hit $51.92 billion by the year 2029. In seven years, that is nearly twice!

The article will take you through the figures, patterns, and significant facts concerning the transformation and future of classic car insurance.

Key Takeaways

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  The classic car insurance market in the world expanded to a value of $30.97 billion in 2022 and will increase with an average growth rate of 7.11% per annum.
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  The demographics of insurance are being redefined by young collectors since Gen Z now constitutes close to 10% of all quotes.
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  The internet is transforming the way individuals purchase insurance, providing immediate quotes and policies to suit the driving habits and needs of modern collectors.

What is Classic Car Insurance?

Classic car insurance is not similar to regular car insurance. It’s a special form of insurance that covers old and collectible cars. Compared to ordinary auto insurance, where you have your daily driver, classic car insurance is aware that classic cars are investments. 

The Agreed Value Coverage

The general use of agreed value coverage is used in most classic car insurance policies. This implies that you and the insurance company will decide on the value of the car, and then you purchase the policy. In case of a bad occurrence, you receive the agreed price, not the price of the car at the time of the accident.

Who Needs Vintage Car Insurance?

The largest group of people who purchase classic car insurance includes individual collectors. These are car enthusiasts who possess one or more special cars that they would like to secure. They may drive their vintage car over the weekend or visit car shows a couple of times per year.

Car clubs and hobby groups also purchase vintage car insurance, in some cases as a group policy insuring a number of members.

Car dealerships and auction houses should also have commercial classic car insurance to cover the high-value inventory they purchase and sell. These companies deal with millions of dollars of vintage cars and require solid insurance coverage to cushion their investment.

Classic Car Insurance Market Size (2019-2024)

The classic car insurance sector has been performing well in the last five years. An examination of the numbers will help us understand the extent to which this market has grown and what fueled the growth.

Market Value in 2019

Towards the end of 2019, the classic car insurance market was a mature and developing entity. In 2022, the gross written premiums in the global market were at $30.97 billion. This figure is the total of the money individuals have paid to purchase classic auto insurance policies across the globe.

The market had been steadily expanding and players such as Hagerty, Grundy, American Collectors Insurance and Hiscox were on the front line.

These firms established their firms by knowing the needs of classic car owners. They established policies that safeguarded rare cars, provided fair agreed values, and made claims simple in case of something going wrong.

Growth During 2019-2022

Between 2019 and 2022 the classic car insurance market has experienced a 7.11% annual growth. This gradual development occurred due to a number of reasons. The values of classic cars continued to increase, and it meant that more insurance was required by the owners to cover their larger investments. 

The pandemic also boosted the market in certain aspects. Where live car auctions ceased, online auctions took off. People were able to purchase classic cars anywhere in the world, and everyone needed to insure their purchases.

Regional Market Performance

Classic car insurance activity varied in various regions of the world.

The market was dominated by North America, which had about $1.9 billion in premiums in 2024. The United States contributed the majority of this growth due to the high culture of collector cars, the affluent population, and the numerous classic car clubs and car events.

Europe was the second-largest with total premiums of $1.3 billion in 2024. The United Kingdom, Germany, France, and Italy are some of the countries with a long history of automotive and classic car ownership traditions.

Asia Pacific was experiencing a promising growth with a premium of up to $0.5 billion in 2024. The interest in classic cars increased in countries such as China, Japan, Australia, and South Korea as they continued to expand their economies and had more funds to use on collections.

Current Market Status (2024)

According to various research sources, the global classic car insurance market is reported at various values in 2024 depending on what they are measuring. It was valued at $4.1 billion by one major source, and other tracking of gross written premiums recorded higher figures. 

The obvious is that 2024 has been a good year when it comes to the insurance of classic cars. The US is still at the top of the world market. The increased prices of classic cars compelled more owners to purchase improved insurance coverage.

Technology also contributed to the expansion of the market. The insurance companies have been able to use improved data, which has helped them to set prices at the right price, handle claims more readily, and provide coverage that meets the needs of every collector.

Classic Car Insurance Market Trends (2024-2025)

The vintage car insurance market is evolving rapidly. This market is being excitingly redefined by new methods of acquiring insurance, new kinds of purchasers, and new tastes.

Distribution Channels Evolution

The way people purchase classic car insurance has evolved significantly. The market is divided into three primary channels that include direct sales, agents and brokers, and online channels.

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  Direct sales occur when you purchase insurance directly from the company and no middleman.
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  Agents and brokers assist you in comparing the available policies and locating the most appropriate one.
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  Through online channels, you can receive quotes, make price comparisons, and purchase insurance through your computer or phone.

The channels cater to varying customer needs. There are collectors who prefer to talk to an agent knowledgeable in classic cars and discuss coverage. Some just find it faster and more convenient to purchase the insurance online.

Rise of Digital Insurance Platforms

The fastest-growing distribution channel is the online platforms. More of the owners of classic cars are now comfortable with purchasing costly insurance policies over the internet. It is easy to post photos of your car, receive immediate quotes, and process your policy on these sites using your phone.

New ideas have been introduced in the classic car market by digital-first insurance companies. They have applications that allow you to file claims by taking pictures and even show you how your car will appreciate over the years.

Changing Demographics in Classic Car Insurance

The individuals purchasing classic car insurance are becoming younger. This transformation is altering the market in all ways. Gen Z currently constitutes close to 10% of vintage car insurance quotes, a phenomenal increase compared to a few years back when the youth hardly bought this insurance.

The Millennials, born between 1981 and 1996, are also moving into the market in large numbers. Combining Gen Z and Millennials means that buyers under 40 years old constitute approximately 30% of the classic car insurance market.

Most of the market is still composed of traditional collectors, such as Baby Boomers and Gen X, but they are losing their market share to younger generations who are finding the fun of owning a classic car.

Younger Buyers' Insurance Preferences

Young collectors demand other things in their insurance. Approximately 79% of the classic car purchasers of the Gen Z and Millennial cohorts desire what they refer to as embedded insurance.

This implies that they would like to have insurance incorporated directly in the place where they purchase their classics, be it an online auction or a car marketplace.

Use-based insurance is also preferred by these younger buyers. They would prefer to pay according to the usage of their car as they may not use their classic car for a month. Most of them will run away to another place as long as they cannot get a quote within minutes via the internet.

Vehicle Type Preferences

The kind of vehicles being insured by people is also evolving. The market divides classic car insurance into two major categories: 

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  Vintage cars (typically manufactured earlier than 1980)
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  Classic cars (typically produced between the 1980s and the first years of the 2000s). 

Both segments are increasing currently, but the rate at which they are increasing is not the same. The older cars of the 1960s and 1970s are still valuable and require insurance, yet the popularity of old cars is rising at a slower pace. 

The vintage niche market is expanding at a higher rate with cars of the 1980s and 1990s. The modern classics are more comfortable to drive and maintain and appeal to younger collectors who remember these cars from their childhood.

Read Also: Classic Car Auction Insights

Classic Car Insurance Market by Ownership Type

The car insurance buyers who purchase classic cars are categorized into various groups depending on the usage of the car. The knowledge of these groups will explain the market growth drivers.

Individual Owners Segment

The largest portion of the classic car insurance market comprises individual owners. These are ordinary individuals who have one, two, or perhaps three old cars that they take care of as a pastime or investment. 

The individual owners are usually interested in insurance that covers their car to car shows, regular pleasure driving, and storage. Many individual policies feature mileage limits usually ranging between 2500 and 5000 miles annually.

Premiums of individual owners differ greatly depending on the value of the car. However, many spend between $200 and $800 annually to cover it. The amount of deductibles is usually between $500 and $2,500.

Collectors and Enthusiast Clubs

There are serious collectors and enthusiast clubs where most of the members may have several classic cars. Such buyers may have five, ten, or even twenty vintage cars in their collection. In some cases, car clubs provide group insurance plans in which members will receive a discount when purchasing insurance as a group.

Multi-vehicle policies are effective for the collectors since they enjoy better rates when they insure more than one car with a company. These policies could include a whole garage with muscle cars, sports cars, and vintage trucks.

Dealerships and Auction Houses

Commercial classic car insurance is required by businesses that sell and purchase classic cars. The dealerships may keep up to $5 million, $10 million, or even $50 million worth of classic cars in their showroom and storage premises at any given time.

High-value inventory must have flexible coverage. The insurance changes as the cars drive in and out. Such business policies include test drives, inter-location transportation, and event display. The premiums are huge compared to individual policies since the risk involved is significantly higher.

Future Projections for Classic Car Insurance Market (2025-2029)

With future prospects, the insurance of classic cars is projected to keep on increasing. The figures indicate a bright future for this type of insurance.

Market Size Forecast to 2029

The market of classic car insurance all over the world is projected to attain gross written premiums of $51.92 billion by 2029. A huge leap as compared to the $30.97 billion the market was in 2022. The market is also expected to increase by a CAGR of 7.11 until 2029.

Such a gradual increase will be due to more individuals hobbying in collecting classic cars, an increase in the value of cars, and improved insurance packages that address the needs of collectors. The older the cars are, the more premiums will be paid by the owners to secure their investments.

North America Forecast

The projected CAGR of North America stands at 6.5% until 2033, and it is expected to remain at the top. The US market will remain dominant in the region due to its huge collector market and powerful car culture.

The Canadian market will also expand steadily. The number of Canadians developing an interest in classic car collections is growing, and there is heightened auction interest in Canada.

Europe and Asia-Pacific Outlook

Continued expansion will be experienced in Europe due to the heritage of cars and the presence of affluent collectors. The region is also blessed with some of the best-known brands of classic cars in the world, such as Ferrari, Porsche, Jaguar, and Mercedes-Benz.

Asia-Pacific will have a CAGR of 8.5% or more, and this is one of the fastest growing markets. We are having countries with fast-growing economies such as China and India, with new affluent classes that are interested in collecting. 

The culture of classic cars is already well-established in Japan, and it is making its way to other regions of Asia. Increased awareness will also lead to an increase in emerging markets in Latin America, the Middle East, and Africa.

Factors Driving Future Growth

A number of key drivers will drive the classic motor insurance market. 

Classic Car Values

The values of old cars continue to increase. In a scenario where a car that was sold at $50,000 five years ago is now being sold at $100,000, the owner of the vehicle requires twice the insurance coverage. It is the value appreciation that leads to premium growth.

Growing Fan Club

With Gen Z and Millennials entering the market alongside Baby Boomers and Gen x and all owners of classic cars, the insured vehicles are increasing. A new generation introduces cars that become the favorite and widens the range of cars being insured.

Changing Classic Car Insurance Regulation

In most regions, it is now mandatory by regulation to have classic car insurance. In certain states and countries, you can not even register a classic car without insurance evidence.

Leveraging Technology Advancement

Insurance companies can use technology and data analytics to charge reasonable rates and identify fraud. Improved data implies improved coverage options and more tailored policies to the individual needs of the collector.

Read Also: Classic Car Industry Growth Trends

Why Knowing a Classic Vehicle's History is Crucial

In the case of a classic car, it is most important to know its entire history. This may have implications for your insurance cover, premiums and peace of mind. It’s your safe jacket from costly errors.

You may also experience insurance issues or even loss of money when you decide to sell a car because the car was either involved in a serious accident, or the odometer has been rolled back, or you do not have the history on how the car got into the hands of its current owner..

How to Get a Classic Vehicle History Report

Classic Decoder offers useful services that enable buyers and collectors to obtain all the facts about their classic car which makes research easy. They provide classic vehicle history reports that provide information on the classic car specifications and past records.

What You Will Find in Our Classic Vehicle History Report

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  Title Information: This ensures that the car does not have either a salvage or flood title.
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  Lien and Loan Records: You can check for outstanding liens to be sure that no one can claim the vehicle after you purchase it.
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  Theft Records: The report displays any stolen records to be sure the deal is legal.
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  Mileage History: Confirm the mileage records to be aware of odometer fraud
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  Accident History: Check for any damage and accident records to be aware of the damage the car has had
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  Auction History: View the auction history with photos to be aware of how the car appears at various times, and much more.

Enhance Documentation with the Classic Car Build Sheet

Classic car build sheets are also offered by Classic Decoder. They are ideal for insurance documentation. A classic build sheet by VIN consists of detailed engine specifications,  standard and optional equipment the car had, color, original base price, information on the carburetor, wheels, and more

The build sheet can help you get the right insurance cover and even reduce your premiums since the insurers will realize that you are aware of the original details, actual condition, and value of your classic car.

Challenges Facing the Classic Car Insurance Market

Despite the robust growth in the future, the classic car insurance market is encountering genuine threats that may influence the future development of the industry.

Valuation Difficulties

The greatest challenge to classic car insurance is knowing the true value. Classic cars are priced up and down according to the market trends, rarity, condition and even what is popular in the movies or television shows. A car can be worth 75000 now and 90000 tomorrow or could fall to 60000.

Appraisal Cost

Appraisal needs are expensive and complex. The price of having a professional appraisal can range from $200 and $500 or even more. Some collectors require updating the appraisal after a few years to maintain the insurance, which demands more time and cost.

Fraud and Authentication Issues

Replicas and clone cars cause large issues with vintage car insurance. A clone involves obtaining a normal car and transforming it to appear as a special car of great value. Authentication becomes difficult due to false documentation.

Fake Documentation

Some unscrupulous traders will produce counterfeit build sheets,  ownership documents, or fake restoration documentation. The insurance companies and the buyers can be deceived without appropriate verification of the classic car history and paperwork. 

Regulatory and Compliance Challenges

There are insurance requirements at the state-by-state level. What may be considered a classic car in California may not be considered in Texas. There are states that have special license plates for classics. Some have other regulations on the distance you can drive the car or where you can go with it.

Licensing and registration Variations

Complexities of licensing and registration differ as well. There are regions where it is easy to register a classic car at low fees and minimal paperwork is involved. Some have stringent investigations and registration fees. There are usage restrictions that limit the enjoyment of cars that the collectors have.

Conclusion on Classic Car Insurance Market

The classic car insurance market has shown amazing growth from 2019 to 2024, growing from $30.97 billion in 2022 toward $51.92 billion expected by 2029. The steady 7.11% annual growth rate proves this market is strong and getting stronger.

North America leads the way with $1.9 billion in premiums, while Europe follows with $1.3 billion, and Asia-Pacific emerges as a fast-growing region at $0.5 billion.

Young buyers (Gen Z and Millennials) are also changing the market. Online platforms are taking over as the favorite way to buy classic car insurance, and modern classics from the 1980s and 1990s are gaining popularity alongside traditional vintage cars.