You’ll no doubt want to be extra careful when choosing insurance for your beloved classic car. Your pride and joy needs the very best protection, after all. Classic car insurance can provide your car with the specialist cover it needs. What’s more, the insurance premiums can be competitive, leaving you with more money to spend elsewhere. Read our guide to discover how classic car insurance works and if it’s worth getting specialist classic cover over a traditional car insurance policy.
Classic car insurance is cover designed for older cars that are typically used for leisure purposes, rather than being used for your commute or as a family run-around.
While classic car insurance has many similarities with regular car insurance, there are some important differences that recognise the unique nature of many classic cars.
Many insurers will consider a classic car to be a vehicle older than 15 years and worth more than £15,000, but definitions will vary. For example, some might only regard a car as a classic if it’s at least 20 years old, is the driver’s second car and the annual mileage is low.
Classic car insurance and traditional car insurance are very similar in many ways. However, insurers that offer classic car insurance generally make some assumptions about the drivers of classic cars that can influence premiums.
For instance, classic car drivers typically take extra special care of their cars to keep them in a good condition. Plus, classic cars are often second cars that are driven much less than run-of-the-mill cars and at less busy times. These tendencies lower the risk of classic car drivers needing to make a claim and can result in lower premiums.
There is one significant difference between classic car insurance and a traditional policy – how the car is valued.
Traditional insurance policies will generally only pay out what your car is currently worth, known as its “market value”, if it is stolen or written off. This is usually much less than what you originally paid, as cars depreciate in value over time.
While it’s easy to set a market value for most modern cars, figuring out how much a classic car is worth can be much trickier. Many will have had a lot of time and money spent on them to keep them maintained, so they will be worth more than their age might suggest. Some classic cars can even increase in value over time if demand for them is high.
As a result, many classic car insurance policies use something called “agreed value”. It’s a fixed sum, agreed between the driver and the insurer, that will be paid out in the event of it being stolen or written off. Depending on the value agreed, this can push up insurance premiums. However, it gives peace of mind that if disaster strikes your beloved set of wheels, you’ll at least get back something close to its full financial value.
Some insurers allow drivers to review this agreed value periodically.
Classic car insurance will cover you for the same risks as regular car insurance. Subject to the level of cover you opt for, you’ll be protected against the following:
Extra features that are more unique to classic car insurance policies often include the following:
Classic car insurance comes with many of the same exclusions as regular car insurance. So your insurance is likely to be rendered invalid if, for example, you drive under the influence of drugs or alcohol or fail to keep your car roadworthy.
Another restriction of some classic car policies is a cap on annual mileage (5,000 miles, for example). Choosing a policy with this restriction can keep premiums down, but you’ll need to take care not to exceed it. If you suspect you might, let your insurer know in advance. If you don’t, it could result in subsequent claims being declined.
You may also find that some classic car insurance policies have a minimum driver age limit. Under 25s, for example, may have to search a wee bit harder to find affordable insurance.
Technically, you can get the same 3 levels of cover (third party, third party, fire and theft and comprehensive) as for any other car. Though, if you love your car as much as most classic fans do, you’re probably going to opt for a comprehensive policy rather than lower-level cover that won’t pay out a penny if you prang your valued vintage.
The other type of insurance you’ll often come across in relation to classic cars is something called “laid-up” cover. This insures a classic car against fire, theft and vandalism if it’s temporarily off the road being restored, on display or in storage.
You’ll come across many of the same optional extras as for any other car. The following add-ons could be worth considering for classic cars:
Agreed value is where you and the insurer agree on a specific value that you’ll receive in the event your car is stolen or written off. It’s often used for classic cars because their age, combined with the level of restoration work that often goes into them, makes it hard to set a market value. Market value is what’s used for most modern cars, based on a car’s resale value on the open market and taking depreciation into account.
With most car insurance searches, the best place to start is usually a price comparison site. This approach is less useful for vintage cars, as many mainstream insurers won’t offer cover (or suitable cover) for genuine classics.
Depending on your car, it doesn’t hurt to try a comparison site. But you should also try a few brokers that specialise in classic car policies. If you’re a member of a car club, it’s worth checking if they offer any discounts with specific insurers too. Though remember a discount on an expensive policy may still leave you worse off than seeking out a cheaper underlying premium.
To get a quote for classic car insurance, you’ll need to supply all of the details that you would for any other car insurance quote (your age, your address, how you’ll use the car and any history of claims or driving convictions).
The main extra detail you’ll often need for classic car insurance is evidence of the car’s value, so you can set an “agreed value” on the car.
Some insurers may accept a price you provide directly, backed by evidence such as small ads for similar vehicles in a similar condition and photos of the car from multiple angles, inside and out. Bills for recent restoration work you’ve had done may also be helpful.
Other insurers require a professional valuation, and this may be more straightforward than trying to put your own value on the car. Classic car clubs often have experts that can provide valuations, usually for a fee.
The cost of classic car insurance varies from insurer to insurer just as traditional policies do. Factors that play a part include the car’s value, where you live, your age and your driving history.
As always, it’s best to shop around and compare quotes against the cover benefits. Bear in mind that going for the cheapest cover could be a false economy if it doesn’t meet your needs.
Surprisingly enough, it’s often cheaper. Classic car owners tend to drive their prized possessions safely and store them securely as well as go the extra mile to keep them in good condition. That, plus the fact they’re usually driven less than your typical run-around, can mean that classic car drivers pay lower premiums than they might for a modern car of similar value.
On the other hand, if a classic car is worth a great deal of money and the agreed value is set high to take this into consideration, this can push premiums up.
Yes, there are providers that will be happy to insure a classic car for a short period – anything from a few hours to 30 days. This could work well if you want to test drive a potential purchase or if your car spends most of its time off the road in storage and is only released for a few days a year. Bear in mind, though, that temporary policies may not offer some of the benefits of a tailored, annual policy – such as agreed value cover or salvage retention.
It depends on the policy. In exchange for lower premiums, some may cap your annual mileage at a lower limit; 5,000 miles is fairly common. If you start getting close to this cap, you’ll need to let your insurer know. They’ll probably charge you extra to exceed it, but doing so without telling them could invalidate your policy.
Given that, by most definitions, a car counts as a classic if it’s more than 15 years old and worth more than £15,000, the most widely owned models that hit these marks may simply be cars that are getting on a bit and that many of us wouldn’t think of as particularly “classic”. So, putting that blunt criteria aside and going instead for cars that most of us would instantly recognise as icons, classics that have more than their fair share of fans include the following:
Classic car insurance can be surprisingly affordable and often offers extra protection for your vintage icon above and beyond what you’d get with a regular policy. It’s well worth checking specialist insurance brokers alongside mainstream providers, as they may offer enhanced cover for a competitive price. Don’t forget to keep an eye out for any restrictions or exclusions that could render your cover invalid, though; the last thing you want is to prang your prized possession and discover you’ve fallen foul of a clause you hadn’t spotted.
| Response | Male | Female |
|---|---|---|
| New paint job | 15.49% | 14.61% |
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