Classic car insurance: agreed value, limited use and club rego
Classic car insurance is usually an agreed value policy for an older or collectable car that is driven occasionally. You and the insurer fix the car's value when you buy the policy, and the cover is shaped around limited use: NRMA's classic policy, for example, caps the kilometres you drive and adds cover for wedding hire and spare parts.
Most states also offer cheaper club or historic registration for older vehicles, with a limit on how many days a year you can drive the car. This page explains how classic policies differ from ordinary car insurance and sets out each state's scheme.
By Better Rate Mate Editorial Team ยท Last reviewed
What makes a policy a classic car policy
Insurers set their own definition of a classic. NRMA's Classic Car Insurance, for example, covers a car that is at least 15 years old and that NRMA recognises as a classic. It is available if you drive the car less than 9,000km a year, and it covers personal use plus wedding and special occasion hire, but not other business use or roadside assistance.
Specialist enthusiast insurers work the same way on value. Shannons says the agreed value of your vehicle includes listed modifications, fitted accessories and paint protection, and it offers salvage rights when a vehicle more than 35 years old is a total loss.
Agreed value, and keeping it right
Moneysmart describes agreed value as a fixed amount decided by you and your insurer, against market value, which the insurer works out at claim time from industry information. For a classic, agreed value is usually the point: there may be few comparable sales, and the car's worth can depend on originality, condition and history.
It is not set-and-forget. Moneysmart warns that insurers may reduce the agreed value each year, and the Insurance Council notes that when used-car prices rose after COVID, many cars' market values climbed above the agreed values their owners had chosen. Check the figure at every renewal, and update it after restoration work or a market shift. Our guide to agreed value vs market value covers the choice in detail.
Club and historic registration in each state
Each state runs a concessional registration scheme for older vehicles, usually through an approved car club and with a logbook to record days of use. The rules below decide how often you can legally drive the car, so match your insurance to them.
| State | Scheme | Vehicle age | How much you can drive |
|---|---|---|---|
| NSW | Historic Vehicle Scheme (unmodified) or Classic Vehicle Scheme (modifications allowed, up to 3.5 tonnes) | 30 years or older | Up to 60 days a year with a logbook, outside organised club events |
| VIC | Club Permit Scheme | More than 25 years old | 45 or 90 days a year, recorded in a logbook |
| QLD | Special interest vehicle concession | At least 30 years old | Limited to club events |
| SA | Conditional registration for historic vehicles | 25 years or more | Up to 90 days in any 12-month period, with a logbook |
| WA | Concessions for Classics | 30 years or older | Up to 90 days a calendar year: 60 for club events and 30 for personal use |
| TAS | Club event registration | 30 years or older | Up to 30 days a year outside club events, with a logbook |
| ACT | Veteran, vintage and historic vehicle registration | 30 years or older | Up to 60 days a year with a logbook, as well as club days |
| NT | Motor club vehicle scheme | At least 30 years old | Club events, maintenance and testing, recorded in a logbook |
Limited use and your policy
Keep the logbook up to date and stay inside your scheme's conditions. Moneysmart notes that a claim may not be covered if the car was unregistered, and your insurer will want to know the car was being used the way your registration and your policy allow.
If you drive the car more than a limited-use policy allows, for example beyond NRMA's 9,000km a year, an ordinary comprehensive policy with agreed value may suit better.
What to ask before you buy
Put the same questions to each insurer, then compare the answers alongside the price:
- Does the agreed value include the car's modifications, accessories and paint protection, and how do I update it?
- Is there a kilometre limit, and what happens if I go over it?
- Who can drive it? NRMA, for example, covers anyone who drives the car, with an extra excess for young drivers who are not named.
- Are spare parts covered, and only when stored in a locked building?
- Is club event, rally or wedding hire use covered?
- Is roadside assistance included, or do I need a separate membership? See roadside assistance.
What to watch for
- Check the agreed value at every renewal. Classic values can move, and insurers may reduce the figure each year.
- Stay within your club registration's day limit and keep the logbook current.
- Limited-use policies cap kilometres. NRMA's classic policy is for cars driven less than 9,000km a year.
- Declare modifications and accessories so they are inside the agreed value.
Common questions
What is classic car insurance?
Car insurance designed for older or collectable cars that are driven occasionally. It is usually agreed value, so you and the insurer fix the payout in advance, and it can limit the kilometres you drive while adding cover for things like spare parts.
How old does a car have to be for classic car insurance?
It depends on the insurer. NRMA, for example, covers cars at least 15 years old that it recognises as classics. Club and historic registration schemes set their own ages, usually 25 or 30 years.
Can I drive my classic car every day?
Usually not on a classic policy or club registration. NRMA's classic policy is for cars driven less than 9,000km a year, and most state club registration schemes allow between 30 and 90 days of use a year, while Queensland and the NT limit club-registered cars to club events and related use.
Is agreed value better for a classic car?
Usually, because it fixes the payout in advance and a classic's market value can be hard to establish. Agreed value costs more than market value, and Moneysmart warns that insurers may lower it each year, so check it at every renewal.
Does classic car insurance cover modifications?
Usually, if they are legal and declared. Shannons, for example, covers legal modifications and non-standard accessories listed on your policy, within the vehicle's agreed value.
