Classic car insurance and how to reduce your premiums
Everyone wants a good deal on car insurance – but what if you drive a classic car? Does owning a classic mean that you have to pay over the odds for insurance; and can you really get the cover you need?
In this guide we look at classic car insurance and how it’s possible to get the right level of cover at the right price.
What is classic car insurance?
Classic car insurance is broadly the same as conventional car insurance in that both are designed to help you cover the costs of any driving related injuries or damages (subject to policy exclusions). However, as classic cars are so unique their parts can be difficult to replace and their values difficult to determine. As such they are looked at differently by insurers who separate them into categories to assess their values, risks and premiums. The categories are:
- Veterans: Vehicles manufactured up to December 1904.
- Edwardian: This refers to cars manufactured from January 1905 - December 1918.
- Vintage: If your car was manufactured from December 1918 - 1933 it is considered ‘vintage’.
- Classics: This is the term used to refer to cars typically manufactured pre - 1975.
- Cherished: These are collectible or rare cars that are 5 to 10 years old.
In addition, there are a number of specialist classic car insurance companies on the market that tailor their policies towards classic car drivers with features that may not be available elsewhere. These can include:
- Agreed/increasing valuations: Typically, if your classic car were written off or stolen, it would be subject to a market valuation and, as the values of classic cars can be so difficult to determine, your car could be undervalued. However, with a guaranteed agreed valuation you know from the outset the level of payout you will receive in the case of a total loss. Some classic car insurance companies even offer increasing valuations because the value of many classic cars increases the older they become.
- Laid up insurance: This covers your classic car against theft and mishaps if it is off the road for a prolonged period – such as if you are rebuilding the vehicle.
- Track cover: Most conventional insurance companies do not offer cover for special events such as hill climbs, rallies and track races – however, some specialists offer this as standard in their policies although you should check the terms and conditions to ensure the event you plan to participate in is covered.
- Wedding/hire cover: Many classic cars are sought after for special events such as weddings – if you plan to rent your vehicle, ensure this is stipulated in your policy.
How can you reduce premiums on classic car insurance?
As with all forms of car insurance, companies consider a number of factors when assessing premiums including your driving history, your address, your annual mileage, the vehicle itself and your personal circumstances. Reducing your perceived risk of making a claim will usually reduce your premiums – here are some tips:
- Agree to a mileage limit: Many insurance companies, and particularly specialists, will reduce your premium if you agree to a mileage cap – the fewer miles you drive, the less likely you are to be in an accident.
- Drive safely: Many insurance companies offer no-claims discounts that can reduce premiums by as much as 60 per cent after four or more years.
- Increase security: While you may not want to modify your classic car with any modern accessories, consider adding up to date security systems such as alarms, immobilisers and trackers as they could earn substantial discounts from your insurer.
- Increase your voluntary excess: The excess is your contribution towards a claim and usually includes a compulsory excess set by the insurer and a voluntary excess – an additional amount you agree to pay if a claim is ever necessary. Increasing the voluntary excess will usually lower premiums but you should be careful to only set it at a level you can afford.
- Owners’ club discounts: Owner’s club members are often perceived by insurance companies as very protective and careful with their vehicles and as such are rewarded with reduced premiums.
- Park safely: If you have access to a locked garage then make sure you use it – keeping your classic car out of the sight of thieves and vandals can reduce your premiums.
- Pay annually: By paying premiums upfront you can avoid monthly interest charges.
- Take an advanced driving course: Several insurance companies offer discounts if you complete an advanced driving course such as the Pass Plus or IAM.
In addition, make sure you’re getting the best deal possible on classic
car insurance by using a comparison website to compare the rates available.
The leading websites can compare deals from more than 120 car insurance companies
including several classic car specialists.