Which insurance provides comprehensive coverage for classic cars?
10 May 2025
3
Minutes
Katrin Straub
CEO at nextsure
Your classic car is more than just a vehicle; it is an investment and a piece of passion. However, conventional insurance often does not cover all the risks that can threaten classic vehicles. Discover how comprehensive coverage can protect your prized possession from unexpected damage and provide you with financial security.
The topic in brief and concise terms
An all-risk coverage protects, unlike comprehensive insurance, also against operational, braking, and breakage damage such as engine or transmission damage.
This premium protection is often subject to conditions, such as a minimum vehicle value of 25,000 euros and a condition rating of two or better.
Typical exclusions under the all-risk coverage include normal wear and tear, rust, and damage during racing events.
Comprehensive coverage: The key difference to fully comprehensive insurance
An all-risk coverage generally insures against all conceivable damages to the vehicle. Unlike comprehensive insurance, which has a fixed catalogue of insured risks, only the points explicitly mentioned in the contract are excluded here. This means protection even against brake, operational, and breakage damage, which are often not covered by standard comprehensive policies. For example, engine damage due to misuse would fall under all-risk coverage with many providers. Specialist insurers often offer this comprehensive protection as a premium option. This extends the question "What does comprehensive insurance cover?" with an important dimension. This extended protection approach is the core of all-risk coverage and justifies its added value.
Scope of services: These damages are typically covered
The greatest advantage of the all-risk cover is the protection against unforeseeable internal defects. A classic case is a transmission failure in a 1975 Porsche 911 that occurs without any external influence. While fully comprehensive insurance does not cover this, the all-risk cover takes on repair costs, often exceeding 10,000 euros. Many contracts even cover damages caused by incorrect operation. Another plus is the consideration of value increases of up to 30 percent if a current appraisal is available. Here is an overview of typical benefits:
Engine damage (e.g., due to material fatigue)
Transmission damage (e.g., from a broken gear)
Fracture damage to axles or drive shafts
Damage due to incorrect operation (e.g., mis-shifting)
Pure breakages of glass without external influence
Vandalism damage that goes beyond partial coverage
This coverage extension fills a critical gap, especially for high-value and sensitive classic cars.
Cost-benefit analysis: When is the extra cost worth it?
An all-risk insurance policy is, on average, between 15 and 30 percent more expensive than a conventional comprehensive insurance policy. For a vehicle valued at 80,000 euros, the annual premium can quickly amount to 780 euros instead of 600 euros. This additional 180 euros seems minimal when considering the risk of engine damage worth 25,000 euros. The investment pays off with the first major, non-typical damage covered by the insurance. A comparison of classic car insurance shows that premium protection is particularly worthwhile for vehicles with a high market value. Many insurers require a minimum value of 25,000 euros and a condition rating of at least two to take out an all-risk policy. The exact costs of classic car insurance depend on many factors, but the potential financial protection often justifies the higher premium. Thus, an additional investment becomes protection against repair costs that could threaten financial stability.
Requirements and Exclusions: What You Need to Consider
Not every vehicle qualifies for an all-risk insurance. Most providers have specific requirements for classic car insurance. These usually include:
A minimum vehicle age of 30 years.
A current valuation report confirming a market value often of at least 25,000 euros.
A limited annual mileage, which often maxes out at 9,000 kilometres.
Proof of an everyday vehicle for daily use.
Despite the broad coverage, there are clear exclusions. Damage due to normal wear and tear or rust is generally not covered. Also, damage occurring during racing events or due to gross negligence is excluded. Therefore, reviewing the insurance terms is essential to understand the exact scope of coverage. Being aware of these conditions is crucial for selecting the right tariff.
Expert Tip: How to Find the Right Provider
Finding the right all-risks coverage requires more than just comparing prices. It's crucial to choose an insurer with expertise in the classic car segment. Specialist providers understand the difference between market value and replacement value and offer flexible solutions. Pay attention to contract details, such as the inclusion of value appreciation, which some providers cover up to 25 per cent. Our expert tip: Check whether the insurer waives a reclassification in the event of a claim, as there are no traditional no-claims bonuses for classic cars. A good policy often also offers additional services, such as a breakdown cover specifically for classic cars. Carefully selecting your partner determines whether, in a serious case, the question of when a classic car insurance is worthwhile is answered positively.
Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive specific optimisation suggestions.
More useful links
The Federal Motor Transport Authority (KBA) provides information in a press release about classic cars in the year 2023.
A brief report with statistics on the age and stock of classic cars in 2023 is provided by the Federal Motor Transport Authority (KBA).
Statista offers statistics on the number of classic cars with H-plates in Germany.
The development of classic car prices and the classic car index in Germany are presented in statistics from Statista.
The ADAC published an article on the classic car statistics for 2022 with inventory numbers from the Federal Motor Transport Authority.
The German Insurers provide comprehensive information on insuring classic cars.
FAQ
From what vehicle value is an all-risk coverage advisable?
An all-risk insurance is usually worthwhile for classic cars with a market value of €25,000 or more, as the potential costs for uncovered damages (e.g., to the engine) are particularly high.
Does the all-risk insurance also cover restoration costs?
No, the costs for a planned restoration are not covered. The insurance provides coverage for unforeseen damages. However, spare parts stored for an upcoming repair are often insured up to a certain value.
Do I always need a valuation report for an all-risk cover?
Yes, to conclude an all-risk coverage, a current valuation report from a recognized expert is almost always required. This serves as the basis for the insurance sum.
Does all-risk coverage also apply abroad?
Yes, the insurance coverage generally applies across Europe. For travel outside of Europe, the scope of coverage in the contract should be reviewed and, if necessary, extended.
What happens if the value of my classic car increases?
Good rates with all-risk coverage include a provision for increases in value. If the value of your vehicle increases, this increase is often automatically insured up to 30 percent above the value stated in the report.
Are damages insured during a vintage car rally?
That depends on the type of event. Trips aimed solely at achieving maximum speeds are excluded. Regularity or tourist rallies, on the other hand, are often covered by insurance. This should be clarified with the insurer in advance.
