Classic Car Insurance

Classic Car Handbook

Insuring a classic car in the UK is different from insuring a standard vehicle. Classic cars often hold sentimental value, are rare, and can appreciate in worth over time, which is why they require tailored insurance policies. If you’re considering insuring a classic car for the first time, here’s what you need to know.

What Qualifies as a Classic Car?

The definition of a “classic car” can vary between insurers, but generally, a vehicle over 15 to 20 years old is considered a classic. Some insurers may also have criteria relating to the car’s value, usage, and rarity. Cars that are used sparingly, typically less than 5,000 miles annually, and maintained in good condition are more likely to meet these criteria.

Classic Car Insurance vs. Standard Car Insurance

Unlike standard car insurance, classic car insurance is specifically designed for vehicles that are not driven daily. It takes into account the special circumstances around ownership and maintenance of classic cars. Policies are usually cheaper than standard insurance due to limited usage, but this can vary depending on the car’s value and condition.

Agreed Value Policy

One of the key features of classic car insurance is the option for an agreed value policy. This means that, in the event of a total loss, the insurance payout will be based on the value agreed upon between you and the insurer at the start of the policy. This is especially important for classic cars, as their market value can differ significantly from standard depreciation models.

Factors Affecting Premiums

Several factors will influence your classic car insurance premiums:

• Age of the Vehicle: Older, rarer vehicles tend to have higher premiums due to the cost of repairs and parts.
• Vehicle Storage: Keeping your car in a secure garage can help reduce premiums.
• Annual Mileage: Limiting your annual mileage can lead to lower premiums.
• Usage: If your classic car is for shows or occasional leisure driving, insurers may offer reduced rates.
• Modifications: Any significant modifications can impact your policy, potentially increasing premiums.

Additional Considerations

Many insurers offer extras, such as breakdown cover for older cars, coverage for spare parts, and the option to include European cover. It’s also worth considering multi-car policies if you have other vehicles. Be sure to compare quotes and read the fine print to ensure the policy covers everything you need.

Compare with Care

Classic car insurance provides the necessary protection tailored to the unique needs of classic car owners. By opting for an agreed value policy, limiting usage, and ensuring proper storage, you can find an affordable, comprehensive insurance plan that ensures your cherished vehicle is well protected.