Classic Car Insurance

Proud owners of classic cars often lavish their vehicles with care and attention. But do they take as much time and trouble over their motor insurance? A classic car insurance policy is often cheaper than insurance on a modern vehicle, but it pays to make sure that you buy the right cover for your prized possession.

Some enthusiasts only take their cars onto the road during the summer months. Previously they could let their insurance lapse over the winter when the car was off the road. But they could now fall foul of a new insurance law, which makes it an offence: if you car is taxed it must now also be insured. 

If you don't drive your classic car at all, you should apply for a Statutory off Road Notification. Insurance and road tax are then no longer mandatory.

What qualifies a car as a classic?

The taxman defines as a classic any car that is more than 20 years old with a minimum value of £15,000. But there is no standard definition for insurance. Some insurer's rate ten-year-old motors as classic; others insist that the car is at least 15 years old. Always check the age definition before you request a quote to make sure you have appropriate cover.

How much does classic car insurance cost?

There are a number of classic car insurance companies that cater to the classic vehicle market. Many mainstream insurers also offer classic car insurance policies. But premiums vary from insurer to insurer, so it's always worth shopping around to find the most competitive deal.

The good news is that classic car insurance quotes are often cheaper than cover for a modern car because a classic car is typically better maintained and driven less often, resulting in fewer claims.

What does classic car insurance cover?

A comprehensive policy for a classic car is broadly similar to a comprehensive cover for a modern vehicle. But there are one or two important differences.

It is not always easy to determine the true value of a classic car, so if your policy pays out the 'market value' in the event of a write off, it might not reflect its actual worth. Experts therefore recommend that you agree the value with the insurer when you take out the cover. You might have to pay a higher premium, but the policy will then pay out the agreed value if the car is a write off.

The insurer might ask for evidence of the car's agreed value, which could include an independent valuation by an expert, who will probably charge a fee. It is also a good idea to ensure that you can update the agreed value of the vehicle each year. Many vintage models - unlike modern cars - increase in value as they get older. If you don't update the value you could be left with an insurance shortfall.

You might also want to check the details of the cover for replacement parts. If your car is particularly valuable, you might want any replacements to be authentic, so make sure the insurance is adequate.

Classic cars are not usually driven as frequently as modern vehicles, so most insurers set a maximum mileage, often about 7,500 miles year. You should find out what will happen if you breach the limit one year. Is there any flexibility to change the agreed mileage, or will a breach automatically invalidate the policy?

The other big difference between classic and standard car insurance is that you do not build up a no-claims discount on classic car cover. The flat rates make it all the more important to shop around for quotes, particularly at renewal.

Does my insurance cover special occasions?

Classic car insurance usually covers events such as vintage rallies and shows, though if the event is abroad, you will probably have to pay an additional premium.

If you hire out your classic car for weddings, you will almost certainly have to extend the cover because most private car policies exclude use of the vehicle for “hire and reward”.

Can I save money on my classic car insurance?

If you drive fewer miles each year than the policy maximum, you can often agree a lower limit in exchange for a lower premium.

Members of recognised classic car clubs should be able to earn a discount on their premium of about 15%.

Some firms will insure only third party, or third party fire and theft instead of comprehensive cover. But you have to weigh up the costs savings against the potential pitfalls of limited cover and remember that the cheapest classic car insurance policy will not always be the best one. However, there might be occasions when you need to take your classic car off the road for a period of time for repair or restoration.  A 'laid-up' policy will cover the vehicle against fire, theft or damage resulting from theft or attempted theft as long as it is kept in a garage - and is cheaper than comprehensive cover. In order for this to become reality you would have to declare the car to be off the road to comply with insurance rules. You will find all these different types of classic car insurance online on the MoneySupermarket.com price comparison service.

Security of your vehicle is important - and classic cars can be particularly attractive to thieves and vandals. You will therefore be offered cheaper classic car insurance quotes if you fit your car with approved security devices and keep it in a locked garage.