January 14, 2010                                                                                   

Guide to classic car insurance  

There are two common perspectives when it comes to finding car insurance quotes for a classic car. Some expect the premiums to be more expensive than for conventional cars because many classics are high maintenance and expensive; while others expect the premiums to be lower because the cars are used less frequently and are generally kept in better condition.  

The reality is that both have merit – and in order to find a competitive car insurance deal for your classic car you need to take as thorough an overview of the market as possible and know exactly what options are available.  

How does classic car insurance work?  

Generally, classic car insurance is the same as conventional car insurance in that it is designed to help drivers cover the cost of accident related damages and injuries, depending on the level of cover they have in place.

However, there are also a number of unique aspects to classic car insurance both in terms of the cover features offered and the way insurers assess premiums.  

For example, classic cars are divided into categories by insurers which are used to assess their values, risks and premiums. These are:  

- Veterans: Refers to vehicles manufactured up to December 1904.  

- Edwardian: These are vehicles manufactured from January 1905-December 1918.  

- Vintage: Classic vehicles manufactured from December 1918-1933.  

- Classics: Cars typically manufactured pre-1974.  

- Cherished: Collectible or rare cars that are 5 to 10 years old.  

Insurers use these categories to assess premiums while also taking into account: your personal circumstances, such as your driving history; whether you are married and your occupation; your address, such as whether you live in a high crime/traffic area; and your annual mileage.  

What additional features are offered?  

While some conventional insurers will offer insurance for some classic cars, owners may prefer a specialist classic car insurer that offers a policy tailored for their needs.  

There are a number of features that are often incorporated into a classic car insurance policy including:  

- Agreed/increasing valuations: If your classic car were written off or stolen it may be subject to a market valuation with a regular insurer – which could leave you out of pocket depending on the market’s fluctuations. However, with an agreed valuation you know from the outset what the car is worth and that you will receive a fixed payout (although you should ensure the valuation is guaranteed). Some insurers also offer increasing valuations which take into account the fact that the values of many classic cars increases on an annual basis.  

- Laid-up insurance: Many classic car owners work on their vehicle as a project rather than actively driving it. If that’s the case with you, then look for laid-up insurance which is a basic form of cover that protects the car from theft and mishaps.  

- Rally/track cover: If you plan to drive your classic car as part of a rally, hill climb or other event then make sure it is covered in the terms of your policy.  

- Wedding/hire cover: With some specialist insurers you may be able to cover your car if you plan to rent it out – this will not typically be offered by conventional insurers.   

The key for classic car owners is to compare specialist policies to conventional deals like-for-like. The leading comparison websites incorporate deals from more than 100 insurers, including some specialists, so this can be a good way to get an overview of what’s on the market. Just remember to not only consider the price but what you get for your money in terms of the cover features – you may decide it’s worth paying a little extra for a specialist deal.  

How can you save money on classic car insurance?  

Many specialist classic car insurers also offer incentives to help keep your premiums in check – including:  

- Mileage limits: Agreeing to an annual mileage limit can cap your premiums.

- Owners’ club discounts: Some insurers believe owners’ club members are more likely to take care of their vehicles and reward them with premium savings.  

In addition, don’t forget the standard ways to reduce your premiums, which involves reducing the likelihood of making a claim such as:  

- Improving security: Keep your classic car in a locked garage overnight and consider fitting modern security devices such as alarms, immobilisers and tracking devices.  

- Pay annually: You can avoid interest charges by agreeing to pay premiums annually.  

- Voluntary excess: The excess is the amount you agree to pay towards a claim and is usually split into a compulsory excess set by an insurer and a voluntary excess, which is an additional amount you agree to pay if a claim is necessary. Increasing the voluntary excess should lower premiums although you should be careful to only set it at a level you can comfortably afford.  

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