📅 2026 Update: Changes in Classic Car Insurance and Specialty Coverage

Since the original article on classic car insurance was published, there have been important changes in the insurance landscape. The growth of the surplus lines market and the introduction of new coverage options are key developments for classic car owners. The information below will help you understand how these changes may impact your insurance choices.

The earlier article continues further down the page.

📈 Surplus Lines Market Growth

The surplus lines market has seen nearly 10% growth through the first three quarters of 2025. This market provides coverage for unique risks that standard insurers often decline. For classic car owners, this means more options for insuring specialty vehicles that may not fit traditional policies.

  • 🚗 Unique Risks: Classic cars may fall under non-standard categories, making surplus lines a valuable choice.

💰 Private Equity Impact on Specialty Insurers

From 2024 to 2026, private equity has influenced specialty insurers, affecting how risks are managed. This has led to compressed capital and shifted more risk to policyholders.

  • 🔍 Policyholder Protections: With changes in underwriting incentives, policyholder protections may rely heavily on state guaranty funds, which could be the last line of defense.

🤖 Affirmative AI Coverage in IP Policies

In September 2026, CFC introduced affirmative AI coverage within its intellectual property insurance policies. This new coverage confirms that claims involving AI meet existing policy criteria.

  • 📅 Current Availability: This coverage is available now, providing assurance for businesses using AI in their operations.

📊 Labor and Material Cost Inflation

As of October 2025, labor costs in the U.S. rose by 1.42%, while material costs increased by 0.93%. This trend impacts claims payouts and insurance pricing in the specialty insurance market.

  • 💵 Effect on Insurance: Classic car owners may see shifts in policy costs due to these inflation rates.

📋 Disruption of Farm Income Coverage

Farmers now need to verify past sales and income levels to obtain farm income coverage. This requirement reflects broader changes in how specialty insurance is assessed.

  • 🏡 Verification Process: Farmers seeking coverage must provide accurate data to qualify.

📌 Key Points Summary

  • 📈 Surplus lines market is growing, offering more options for classic car insurance.
  • 💰 Private equity changes are affecting risk management in specialty insurance.
  • 🤖 New AI coverage is now available, offering support for businesses using AI.
  • 📊 Inflation in labor and materials is impacting insurance costs and claims.
  • 📋 Farmers must verify income for farm income coverage, reflecting changes in specialty insurance.

💡 Tips for Classic Car Insurance

Before making decisions about your classic car insurance, review the details of your situation with your attorney.

📅 Understand Surplus Lines Insurance

If traditional insurers decline your classic car, consider surplus lines insurance. This type of coverage caters to unique risks, making it suitable for specialty vehicles.

🏎️ Evaluate AI Coverage Options

If your classic car business uses AI for operations, look into affirmative AI coverage. This can protect against specific risks associated with AI technology.

💵 Monitor Labor and Material Costs

Keep an eye on rising labor and material costs. These can impact your insurance premiums and claims payout, which may affect the overall cost of maintaining your classic car.

📈 Research Specialty Insurers

Investigate specialty insurers that focus on classic cars. They often provide tailored policies that meet the unique needs of classic vehicle owners.

🏡 Verify Income for Farm-related Coverage

If your classic car is part of a farm operation, ensure you can verify past income. This is crucial for obtaining the necessary farm income coverage.

🔍 Stay Informed About Market Changes

Stay updated on changes in the surplus lines market. Understanding these shifts can help you make informed choices about your classic car insurance options.

❓ Frequently Asked Questions

❓ What is surplus lines insurance?

Surplus lines insurance covers unique or high-capacity risks that standard insurers often decline. It is especially relevant for classic car owners who may face challenges finding coverage.

🤔 How does private equity affect specialty insurers?

Private equity has altered the financial landscape of specialty insurers, compressing capital and shifting more risk to policyholders. This can impact policyholder protections and claims handling.

🚗 Can classic car owners benefit from affirmative AI coverage?

Yes, if classic car businesses utilize AI in their operations, they may qualify for affirmative AI coverage. This coverage addresses specific risks associated with AI technologies.

📈 How can I keep my classic car insurance costs low?

To manage costs, monitor labor and material price changes, evaluate specialty insurers, and verify your coverage needs regularly. Staying informed can help you find the best rates.

🏡 What do farmers need to do to get farm income coverage?

Farmers must provide verification of past sales and the income levels they seek to cover. This requirement ensures they have the necessary documentation for their claims.

📞 Where can I find more information about classic car insurance options?

You can explore resources from the Insurance Information Institute and your state insurance department. These organizations provide valuable information about classic car insurance and specialty coverage.

⚖️ Recent Cases Related to Classic Car Insurance

Recent court rulings have highlighted the evolving legal landscape in classic car insurance and specialty coverage. These cases often address issues related to policyholder protections and coverage disputes.

For more recent rulings, browse more rulings on the news page.

End of October 2026 Update





What is Classic Car Insurance?

Classic car insurance is a special type of automobile insurance that is designated for cars over 25 years of age. Classic car insurance is offered as a separate insurance policy because a classic automobile is considered a valuable asset, which requires specialized protection. 

Classic car insurance differs from traditional car insurance in that it is geared specifically toward the protection of older, typically more expensive automobiles, what are maintained and driven as a hobby or collectible. As a result of its use, classic automobiles do not serve as a primary, or even secondary, mode of transportation; classic cars are primarily restored and subsequently collected as pieces of art or as sentimental collectibles. Such characteristics fundamentally generate a need for a specialized form of insurance.

The majority of consumers believe that if a car is drive less it is cheaper to insure; this common misconception is irrefutably debunked in the case of classic car insurance. Automobiles that are driven for fun or are maintained as collectibles, such as the majority of classic cars (manufactured at least 25 years ago), require a much higher premium and insurance rate, when compared to primary or regular automobiles.

Why is Classic Car Insurance more Expensive than Regular Car Insurance?



Classic car insurance is more expensive than regular insurance because of the cost of repair. As a result of the age of the vehicle, when a classic car accident gets in an accident, the repair parts and service require special tills, excessive time and a specific supplier.

Dissimilar to regular cars, where universal or updated parts are readily available, a classic car requires specific parts that are primarily rare/expensive and a specific knowledge that may be considered esoteric. These characteristics translate to one simple statement: the average car-insurance policy is inadequate to repair or replace a damaged vintage, antique or classic car.

Types of Classic Car Insurance:

Three types of--cars, vintage, classic and antique-- can be insured under a classic car insurance policy. A vintage car is typically only a few decades old, such as a 1981 Ferrari, while classic cars are considered slightly older, such as a 1966 Mustang and antique cars, such as the Ford Model T or a 1925 Rolls Royce are considered very old. Regardless of the type of classic car insurance, each policy will typically offer more protection than regular car insurance. Furthermore, the purchaser of classic car insurance will enjoy a special rate reduction for periods of prolonged activity (winter months) that a regular car insurance policy would not provide for.

When purchasing classic car insurance it is crucial to evaluate and understand the quality of service and the terms of the coverage, specifically the price limit on parts. Additionally, the purchaser should be careful as to the agreed price valuation clause, which is invoked in the event that the car is destroyed or stolen—this clause may yield far less value than the true value of the car.

Classic Car Insurance