Usually any loan will require collateral. Is the car the collateral? If so, they will require that it's insured with comp & collision. How many miles are you going to drive the car? If the car is a toy and will not be driven that much, get collector insurance. Even with comp/collision (these are usually $0 deductible policies) the cost is minimal (as insurance goes). Check with Haggerty, Grundy and other companies like these. These are usually stated value policies (some have mileage limits of 3000 or 5000 miles a year).