When we think about classic cars, we might think about an MGB GT Coupe or a Morris Minor. But when it comes to classic car insurance, it’s more about how the car is used and kept than its age.
What is classic car insurance?
Classic car insurance can offer you cut-price premiums. But what is it and how does it work?
Well, it offers a lower premium price under assumptions that you treat your car more carefully if it is classed as a classic.
Basically, insurers assume that the car isn’t your primary car, that it is kept in a safe space to protect its value and that it’s likely to only be driven a few days a year in good weather conditions.
All of this assumed behaviour helps to minimise the risk of damage, theft and accidents. So therefore the insurer is happy to price your premium lower.
What counts as a classic car?
It may surprise you, but classic cars are not classed as such purely on their age. In fact, from an insurance standpoint, it is much more about how the car is treated.
So your car is likely to be considered a classic if it is:
- More than 15 years old
- Worth more than £15k
- Driven less than 5,000 miles a year
- Kept in mint condition
- Used as a second car
So the old Nissan Bluebird that you have kept around for nostalgia and take out on the occasional jaunt could count as a classic car. But if it’s the car you use every day, you can’t insure it as a classic in order to secure yourself a cheap car insurance deal.
What you will also find is that an insurer will have its own set of criteria as to what counts as a classic. So make sure to check with several providers.
How do I get a classic car insurance policy?
As with any policy, it’s best to try to compare car insurance quotes before committing to buying one. So shop around and have a look.
You will also find that there are specialist classic car insurance brokers such as Carole Nash, Footman James and Lancaster. These types of providers have a wide knowledge base and use a network of car clubs in order to provide you with a broad range of quotes.
What should I watch out for with classic car insurance?
As classic car insurance is slightly different than standard car insurance, there are a few things to watch out for:
Agreed valuation
The main thing to be aware of when it comes to taking out a classic car insurance policy is that it is hard to determine the market value of a classic car. The value can vary wildly depending on the interest in that model at the time.
So instead of a market value figure, your policy will include an ‘agreed valuation’. This is the amount you will receive if your car is written off or stolen. So make sure you double-check this when taking out your policy.
Policy details
Classic cars can have different variables, so it is wise to take a close look at your policy details. Things like mileage, type of use, age of car or modifications will all be specified in your policy. And knowing this means that you can avoid invalidating your policy.
Automatic renewal
Much like standard car insurance, try to avoid the trap of automatic renewals. You often end up with a much better deal if you compare prices each year. Or even if you phone up and haggle with your current provider.
