How to Insure a Classic Car in Australia: Costs and Coverage Options?
Insure Classic Car in Australia is more than a hobby, it’s a passion. From a restored Holden Torana to a vintage Ford Falcon or an imported Mustang, these vehicles represent history and craftsmanship. Because of their age, rarity, and value, they need special protection. Classic car insurance, also known as vintage car insurance or collector car insurance, is designed specifically to cover these unique vehicles in ways that standard car insurance cannot.
What is classic car insurance?
Classic car insurance is a specialised policy created for older or collectible vehicles. It usually offers agreed value cover, limited-use conditions, and access to specialist repairers who understand classic cars.
How is it different from regular car insurance?
Unlike standard policies for daily drivers, classic car insurance focuses on preserving value rather than depreciation. It considers factors like restoration quality, usage limits, and secure storage.
How do you insure a classic car in Australia?
In this guide, How to Insure a Classic Car in Australia: Costs and Coverage Options, we explain:
- Which coverage options are available
- How much classic car insurance typically costs
- What factors affect premiums
- How to save money without reducing protection
This article is part of the in-depth Blogs on GeneralPedia, where insurance topics are explained in clear, easy language for everyday readers. We use real-life examples and practical tips to help classic car owners make confident decisions. If you need personalized advice or have questions about coverage, you can always reach out through our Contact Us page for friendly support.
What Makes Classic Car Insurance Different?
Classic car insurance is designed for vehicles that are collectible, rare, or historically significant. Unlike standard cars, which lose value over time, classic cars often appreciate, making regular insurance a poor fit. Insurers in Australia, like Shannon or NRMA, offer policies that account for the unique needs of classic car insurance, such as agreed value payouts and limited-use discounts.
What Counts as a Classic Car?
In Australia, the definition of a “classic car” varies by insurer:
- Classic: Typically cars over 15–30 years old, depending on the insurer.
- Vintage: Cars made between 1919 and 1930.
- Veteran: Cars made before 1919.
- Emerging Classic: Cars 15–30 years old with collectible potential.
Insurers may also consider rarity, condition, and usage (e.g., not a daily driver) when classifying your car. For example, my mate Dave’s 1972 Holden Monaro was insured as a classic by Shannons, even though he only drives it to car shows.
Types of Coverage for Classic Cars
Classic car insurance in Australia comes in several forms, each offering different levels of protection. Here is a breakdown:
1. Comprehensive Classic Car Insurance
This is the most complete coverage, ideal for valuable or frequently driven classics. It includes:
- Accidental Damage: Covers repairs if your car is damaged in a crash, whether you are at fault or not.
- Theft and Vandalism: Pays for repairs or replacement if your car is stolen or vandalized.
- Fire, Flood, and Storm: Covers damage from natural events.
- Third-Party Liability: Covers damage you cause to others’ property or vehicles (up to $20–$30 million).
- Choice of Repairer: You can pick a specialist repairer familiar with classic cars.
- Modifications and Accessories: Covers custom parts, like chrome wheels or a rebuilt engine.
2. Third-Party Fire and Theft
This is a mid-level option, cheaper than comprehensive but with less coverage:
- Theft or Fire: Covers your car if it’s stolen or damaged by fire.
- Third-Party Damage: Pays for damage you cause to others’ property.
- No Accident Coverage: Does not cover repairs to your car in a crash unless it involves fire or theft.
This is good for cars kept in secure storage or driven rarely. For example, my neighbor Lisa has a 1965 Ford Mustang she only drives twice a year. She chose this to save money since her car is garaged most of the time.
3. Compulsory Third-Party (CTP) Insurance
CTP, or Green Slip in NSW, is mandatory for all registered vehicles in Australia. It covers:
- Injuries to Others: Pays for injuries or fatalities you cause in an accident.
- No Vehicle Damage: Does not cover your car or others’ property.
CTP is the bare minimum and not enough for valuable classics. You will need additional coverage for proper protection.
4. Laid-Up Cover
This is for cars not driven, like during restoration or storage:
- Storage Protection: Covers theft, fire, or vandalism while the car is garaged.
- Lower Premiums: Cheaper because the car is not on the road.comparethemarket.com.au
My friend Tom used laid-up cover for his 1958 Holden FC while restoring it in his garage. It saved him hundreds compared to comprehensive coverage.
Key Features of Classic Car Insurance
Classic car policies often include special features not found in standard insurance:
- Agreed Value: You and the insurer agree on your car’s value, ensuring a fair payout if it’s totaled. This is crucial since classic cars don’t depreciate like modern ones.
- Salvage Rights: If your car is over 15–30 years old, you can keep the damaged vehicle after a total loss claim (optional or automatic, depending on the insurer).
- Limited Use Discounts: Lower premiums if you drive less than 9,000–10,000 km per year or use the car for shows and leisure only.
- Specialist Repairers: Access to mechanics skilled in classic cars.
- Restoration Coverage: Protects cars under construction, sometimes increasing the insured value as restoration progresses.
Costs of Classic Car Insurance in Australia
The cost of classic car insurance varies based on several factors. On average, premiums range from $300 to $1,000 per year, much lower than standard car insurance due to limited usage.
- Car’s Value: A rare 1969 Holden GTS Monaro costs more to insure than a common 1980s Commodore.
- Age and Condition: Older or restored cars may have higher premiums due to rare parts.
- Usage: Driving less (e.g., under 9,000 km/year) lowers costs.
- Storage: Secure garaging reduces premiums.
- Driver History: A clean record keeps costs down.
- Location: Urban areas like Sydney or Melbourne have higher premiums due to theft risks.
Example Costs (2026 Estimates)
| Car Type | Coverage Type | Annual Cost (AUD) |
|---|---|---|
| 1972 Holden Monaro | Comprehensive | $500–$1,000 |
| 1965 Ford Mustang | Third-Party Fire & Theft | $300–$600 |
| 1925 Rolls-Royce | Laid-Up Cover | $200–$400 |
| 1985 Toyota Corolla | Comprehensive | $400–$800 |
A Personal Story
Last year, I helped my uncle insure his 1970 Ford Falcon XY. He got a comprehensive policy with Shannons for $650 a year, with an agreed value of $40,000. When a storm damaged his car’s hood, the insurer paid for a specialist repairer to fix it, saving him thousands. The agreed value gave him peace of mind that his car’s true worth was protected.
How to Choose the Right Classic Car Insurance
Choosing the best vintage car insurance or collector car insurance involves a few steps:
- Determine Your Car’s Value: Get a professional valuation or check recent sales of similar cars. Car clubs can help.
- Compare Quotes: Use sites like Compare the Market or Mozo to get quotes from insurers like Shannons, NRMA, or Ryno Insurance.
- Check Coverage Details: Read the Product Disclosure Statement (PDS) to understand what’s covered, like modifications or salvage rights.
- Ask About Discounts: Limited use, secure storage, or car club membership can lower premiums.
- Choose a Specialist Insurer: Companies like Shannons or Enthusiast understand classic cars better than standard insurers.
Tips for Saving Money
- Limit Driving: Keep annual mileage under 9,000 km for discounts.nrma.com.au
- Secure Storage: Garage your car to reduce theft risk.
- Pay Annually: Avoid monthly payment fees.
- Join a Car Club: Some insurers offer discounts for members.
- Increase Excess: A higher excess lowers your premium but means you pay more if you claim.
Common Exclusions to Watch Out For
Classic car policies often have exclusions. Make sure you’re not caught out:
- Daily Driving: Most policies do not cover cars used for commuting.
- Undisclosed Modifications: Custom parts must be reported to be covered.
- Racing or Off-Road: Damage from track days or rallies is usually excluded.
- Poor Maintenance: Mechanical failures from neglect are not covered.
- Severe Weather Embargoes: Some insurers would not cover storm damage during embargo periods.
Real-Life Scenarios: Which Coverage Fits?
Scenario 1: Car Show Enthusiast
Emma owns a 1967 Holden HR Premier she drives to car shows in Melbourne. She chooses comprehensive classic car insurance with Shannons for $700 a year. It covers theft (a risk in urban areas) and her car’s agreed value of $35,000. When vandals scratched her car at a show, the insurer paid for a specialist to repaint it.
Scenario 2: Restoration Project
Jack is restoring a 1955 Holden FJ in his garage in Adelaide. He opts for laid-up cover with RACV for $250 a year. It protects against fire and theft while the car is off the road. When he finishes the restoration, he will switch to comprehensive coverage.
Frequently Asked Questions (FAQs)
Most insurers consider cars over 15–30 years old as classics, but it depends on rarity and usage. Check with your insurer or car club.
Agreed value ensures you get a set payout reflecting your car’s true worth, not a depreciated market value.
Yes, but you must disclose all modifications to the insurer. They will be included in the agreed value.
Often, yes, because classics are driven less and stored securely. Premiums range from $300–$1,000 annually.
Yes, some policies (e.g., NRMA) cover special occasion hire, but confirm with your insurer.
Conclusion
Insuring a classic car in Australia starts with choosing a policy that matches both your vehicle’s true value and your driving habits. Classic car insurance, vintage car insurance, and collector car insurance are designed specifically for older and collectible vehicles, offering benefits like agreed value coverage and access to specialist repairers features that standard car insurance policies often do not provide.
For high-value vehicles or classic cars that are driven regularly, comprehensive classic car insurance offers the best protection. If your vehicle is under restoration or rarely driven, laid-up cover can be a cost-effective option. To make the right choice, compare insurance quotes, carefully review the Product Disclosure Statement (PDS), and look for discounts based on limited mileage or club membership. You can find more helpful guides and expert tips in our Blogs, where we cover classic and specialty car insurance in detail.
If you need help selecting the right policy or have specific questions, visit our Contact Us page for assistance. We also recommend reviewing our Privacy & Policy to understand how your information is handled, and our Terms and Conditions for full details about using our website. Whether you are cruising to a car show or safely storing a vintage gem in your garage, the right insurance policy gives you peace of mind to truly enjoy your classic car.