How Does Classic Car Insurance Work in Australia?
In a Nutshell: Classic car insurance is a specialist product for vehicles that are 15–30+ years old, cherished, and driven sparingly. It offers agreed value cover (you and the insurer agree on the car's worth), lower premiums than standard comprehensive, and strict usage limits. It's not for daily drivers — it's for weekend cars, show cars, and collector vehicles.
What Qualifies as a "Classic" Car?
| Insurer | Classic Age Requirement | Enthusiast Age |
|---|---|---|
| Shannon's | 15+ years | Any — with enthusiast use |
| Enthusiast Insurance | 15+ years | N/A |
| NRMA | 15+ years | Varies |
| RACV | 20+ years | N/A |
| Just Car | N/A | 15+ years for modified/enthusiast |
| Lumley | Varies | Varies — high-value focus |
💡 Note: Some insurers now offer "enthusiast" policies for modern sports cars and niche vehicles that aren't old but are driven lightly and cherished.
Classic Car vs Standard Cover
| Feature | Standard Comprehensive | Classic/Enthusiast |
|---|---|---|
| Valuation | Market value or agreed value | Agreed value (standard) |
| Annual km limit | Unlimited | 5,000–10,000 km |
| Usage | Daily driving allowed | No daily commuting |
| Storage | Anywhere | Secure/garage storage required |
| Modification cover | Limited | ✅ Usually included |
| Multi-car discount | Standard | Club member discounts |
| Annual premium ($20k car) | $700–$1,100 | $300–$600 |
| Annual premium ($100k car) | $1,500–$2,500+ | $600–$1,200 |
Agreed Value — The Key Feature
For classic cars, agreed value is essential:
| Aspect | Agreed Value (Classic) | Market Value (Standard) |
|---|---|---|
| Payout | Fixed amount agreed upfront | Current market value at time of claim |
| Appraisal | May need professional valuation | No appraisal needed |
| Best for | Rare, appreciating, or modified cars | Every day, depreciating cars |
| Certainty | ✅ You know exactly what you'll get | ❌ Payout can be lower than expected |
💡 Example: Your 1970 Ford XY GT is valued at $120,000. With agreed value, you get $120,000 if written off. With market value, you might get only $80,000–$100,000.
Classic Car Insurance Costs
| Car Value | Annual Premium (Safe Driver, 50+) |
|---|---|
| $15,000 (e.g., 1980s Mini) | $250–$400 |
| $30,000 (e.g., 1990s Mazda MX-5) | $350–$550 |
| $50,000 (e.g., 1970s Holden Monaro) | $450–$750 |
| $100,000 (e.g., early Porsche 911) | $600–$1,200 |
| $200,000+ (e.g., Ferrari 308) | $1,000–$2,000 |
Usage Restrictions
| Restriction | Typical Limit |
|---|---|
| Annual km limit | 5,000–10,000 km |
| Daily commuting | ❌ Not allowed |
| Club events, rallies, shows | ✅ Covered |
| Social/pleasure driving | ✅ Allowed |
| Driving to/from the mechanic | ✅ Allowed |
| Driving to/from an event | ✅ Allowed |
⚠️ Important: If you use a classic car for daily commuting and have a claim, the insurer can deny it.
Best Classic Car Insurers
| Insurer | Strengths |
|---|---|
| Shannon's | #1 classic car insurer — understands values, modifications, and enthusiast needs |
| Enthusiast Insurance | Excellent for classic, vintage, and modified vehicles |
| Lumley Special Vehicle | Best for high-value classics ($100k+) |
| NRMA (Classic) | NSW-focused, good for member discounts |
| RACV (Classic) | VIC-focused, good club member rates |
| Just Car | Good for modified and younger enthusiast cars |
Key Takeaway
- Classic car insurance is for vehicles 15+ years old, used sparingly (5,000–10,000 km/year).
- Key feature: agreed value — you know exactly how much you'll be paid if the car is written off.
- Premiums: $250–$2,000/year depending on the car's value.
- NOT for daily commuting — limited to pleasure, club events, and shows.
- Must be stored in a secure garage.
- Shannon's, Enthusiast, and Lumley are the top specialist insurers.
- Professional valuation may be required for high-value cars.
- Modifications are usually covered — declare them.
Last updated: July 2026
Disclaimer: This article provides general information about classic car insurance in Australia. Definitions and policy terms vary by insurer. Always read the PDS and discuss your usage with the insurer before purchasing.