Perhaps you’ve finally got your hands on the ’85 Holden VK Commodore you’ve been dreaming about since you were a kid, or maybe you’ve spent years restoring a four-wheel vintage investment that stays safely under wraps in your garage most of the time.
Either way, owning a classic car isn’t just about the smell of old leather and the knowing nods you get from other vintage car enthusiasts on the road. It can also come with some unique considerations, such as working out what you need to do to maintain it and finding a mechanic with specialist knowledge to keep your investment in tip-top shape.
Then there’s insurance. If your car has a number of decades on the clock, will a standard car insurance policy do the trick – or do you need to consider classic car insurance? How does insurance for classic cars differ from the type you’d buy for a younger car? Does it make a difference if your classic car has been modified? And what, exactly, qualifies as a classic car?
To help clear up any insurance-related confusion you might have about insuring a vintage vehicle, we’ve put together this classic car insurance guide to answer those questions and more.
What is a classic car?
There’s no single definition of what a classic car is, but depending on where you live, state governments and car clubs typically consider a car to be a classic, vintage or historic vehicle if it’s at least 25 or 30 years old, counted from the year of manufacture.1-5
When does a car become a classic for insurance purposes? This can also vary quite a bit across different insurers.6
What is classic car insurance?
Essentially, it’s a variety of car insurance that’s similar to comprehensive car insurance, but with added features designed for classic or vintage vehicles – particularly those that are only driven infrequently.7
How is classic car insurance different to standard car insurance?
Some of the additional benefits that a classic or vintage car insurance policy might feature, compared to a standard comprehensive car insurance policy, include:
- Limited usage cover: Classic or vintage vehicle insurance typically accounts for the fact that these cars are usually only driven occasionally, often resulting in lower premiums.6,7
- Lay-up periods: Some classic car insurance policies also factor in the likelihood of older cars spending a decent amount of time off the road being restored or maintained, which may also lead to reduced premiums.6,7
- Salvage rights: If your classic car is considered a total loss after an insured event, a classic car insurance policy might give you the option of retaining the unrepaired vehicle as well as the insurance payout.6,7
- Choice of repairer: Insurance for classic cars may also allow you to use your preferred mechanic if your car needs repairing following an insured event.6,7
- Cover for modifications: It’s not uncommon for classic cars to have been modified over the years, and while standard car insurance policies don’t always cover modifications, classic or antique car insurance policies typically do.7
Plus, while standard comprehensive car insurance policies often allow you to choose between Market Value or Agreed Value cover,8,9 classic car insurance policies typically only use Agreed Value to determine a car’s worth.6,7
In the insurance world, Agreed Value is the fixed amount you and your insurer agree to cover your car for at the time you take out the policy.8 It’s typically an amount that’s higher than its Market Value, or what the car would sell for if it was damaged or stolen.8
Generally speaking, Agreed Value policies might cost more than Market Value ones,9 but Market Value is deemed less suitable for vintage vehicles because it risks insuring the car for less than it’s actually worth.6-8
What events does classic car insurance cover?
The exact level of cover will depend on the insurer and the classic car insurance policy,7 but like most comprehensive car insurance policies,9 insurance for classic cars typically covers events such as:7
- Accidental damage to your car
- Damage to your car caused by storm, flood or fire
- Theft or attempted theft of your car
- Damage to other people’s cars or property, caused by your car.7
What doesn’t classic car insurance cover?
A list of general exclusions applies to all classic car insurance policies, meaning that claims won’t usually be paid if they’re for events or damage such as:7
- Mechanical, structural or electrical failures
- Deterioration, rust or corrosion
- Wear and tear.7
What about compulsory third party insurance for classic cars?
As with standard vehicles, before registering a classic or vintage car so you can take it on the road, you’ll need to organise compulsory third party (CTP) insurance.6,10
A mandatory type of insurance that covers injuries to people caused by your car, CTP is included in your car registration costs in some states.10 Most states and territories also offer conditional registration schemes for classic cars that are only driven for a certain number of days a year.1-3 Some of these include a discount on CTP insurance.1,2
You can find out more about how these schemes work in:
How much might classic car insurance cost?
There are a range of factors that will influence the cost of a classic or collector car insurance policy. Some of these include:
- Your age – Younger drivers have less driving experience than older drivers and are more likely to be involved in car accidents, which is something that can impact car insurance premiums.7
- Your driving record – You might have to pay more for your classic car insurance if you have an accumulation of demerit points or a history of being involved in accidents and making insurance claims.7,11
- Where you live – Some neighbourhoods or regions are more prone to crime or to potentially damaging severe weather, so your location may also affect the cost of your insurance.7
- Where your car is kept – Insurance may cost more for a classic car that’s always parked on the street rather than kept locked in a secure garage.7
- Your car’s make and model – Some classic or sought-after collectible cars are worth more than others – and the more valuable the car, the more you’ll generally need to pay to insure it.7
With so many factors to consider, defining the average classic car insurance cost for your vehicle can be difficult. However, getting some quotes based on your individual circumstances could help give you a clearer idea of the average cost of a policy for your vehicle12 – and there are steps you can take to ensure the quotes you receive are as accurate as possible.
How can you work out the value of your classic car?
There are a number of specialist car valuation services in Australia and they can provide you with a suggested value to give to your insurer.7 This can help you and your insurer determine and agree upon your car’s Agreed Value, which is the amount you’ll be paid out if the vehicle is written off as a total loss, or stolen.7
Car valuation services will typically require a few key details such as the vehicle’s:7
- Year of manufacture
- Make, model and version
- Body type
- Odometer reading.7
Providing photos of the car and any official value documentation you’ve received from a classic car owners’ club – if you’ve joined one – can also be helpful.7
When might standard car insurance suit a classic car?
If you use and drive your classic car every day because it’s your main source of transport, or if it’s not a particularly rare or in-demand make or model, a standard car insurance policy may provide the cover you’re looking for.6
For most insurers, you can choose from three levels of car insurance:
- Comprehensive – the highest level of cover available, it covers damage your car causes to other people’s cars or property, plus cover for your car for accidental damage – even if it’s your fault – most severe weather events, intentional damage and more.9,13
- Third Party Fire & Theft – covers damage your car causes to other people’s cars or property, as well as cover for fire or theft of your vehicle.13
- Third Party Property Only – only covers damage your car causes to other people’s cars or property.13
Looking after a piece of motoring history takes a special kind of care. As a car enthusiast, securing the right insurance for your classic car means you can spend less time worrying and more time enjoying your vintage ride.
To see if Youi’s car insurance options may be able to cover your pride and joy, chat with our team on 13 9684 or consider starting a quote online.
1 Source: Government of SA – Cheaper car registration for more historic and classic vehicles, July 2022
2 Source: Qld Government – Special Interest Vehicle Concession Scheme guide, December 2023
3 Source: VicRoads – Get a Club Permit, n.d.
4 Source: Veteran Car Club of Australia (Tasmania) Inc – VCCA (Tasmania), n.d.
5 Source: Classic & Custom Car Club of NSW, n.d.
6 Source: Canstar – Car enthusiasts: How to get insurance for your classic or vintage car, May 2025
7 Source: Finder – Give your vintage car the love it deserves, February 2025
8 Source: Canstar – Car Insurance Market Value vs Agreed Value, April 2025
9 Source: Canstar – What is comprehensive car insurance?, May 2025
10 Source: Moneysmart – Choosing car insurance, n.d.
11 Source: Canstar – Do demerit points affect your car insurance premiums?, April 2026
12 Source: Canstar – How much does car insurance cost?, April 2026
13 Source: Canstar – Different types of car insurance explained, March 2026
