Car insurance for classic cars

Classic car enthusiasts are often seen as the ultimate motoring devotees. For them there is nothing better than taking to the road in a vehicle that turns heads and offers an unrivalled driving experience. However, this enthusiasm can be curbed by the difficulties in obtaining car insurance for a classic car.

Unfortunately, securing the right car insurance policy for a classic car can be a testing process as there are many different rules and regulations that apply to classic cars and which can vary from insurer to insurer.

The key to finding a good car insurance deal for your classic car is to apply the same forethought and consideration as you do to the car itself. Remember this is a unique vehicle that requires a unique policy with many different nuances and subtleties compared to regular car insurance deals.

The first step to a classic car insurance deal

To begin your search for classic car insurance you must determine exactly which group your car appears in – bear in mind that a classic car to one man may be a heap of junk to another.

There are some guidelines to assist your cause. Cars manufactured before 1903 are considered ‘veteran’ vehicles. Those developed between 1903 and 1933 are dubbed ‘vintage’ vehicles. Meanwhile, the remaining group can be considered ‘classic’ cars as long as they are at least 15 years old.

The definitions of veteran, vintage and classic will vary from insurer to insurer - so contact a provider directly and ask which group your car fits into. This definition will go a long way in determining the level of cover you’re offered and the size of your premium.

The importance of valuation for a classic car insurance deal

Generally the value of a classic car is determined by scarcity and condition – the better shape the car is in and the less common it is, the more likely it is to be considered of high value.

With any classic car insurance deal you must determine a guaranteed agreed valuation (GAV) with the insurer. This is the cash the insurer will pay out should the worst happen and your vehicle be considered a write-off.

Bear in mind that this is a difficult process, particularly for classic cars. Just as there are natural fluctuations in value for conventional vehicles this applies to classics too. However, even more so valuations of classics can vary from insurer to insurer. It might be worth contacting several insurance companies and asking them to give a rough estimate of the valuation they would place on your vehicle – most insurance companies will have specialist departments to deal with your request. Some insurers will charge for this service, so be careful.

Specialist classic insurers versus conventional car insurers

Generally speaking, the specialists will offer better deals. They can offer purpose-built policies that are more adequately tailored to your needs. However, don’t fall into the trap of assuming that one classic car insurer will always be the cheapest – it’s well worth shopping around for a series of quotes.

You should also take advantage of car insurance comparison tools too, to compare the quotes offered by conventional car insurers. There are a number of mainstream providers that will offer deals for classic and vintage vehicles – though their prices will almost certainly be more expensive than their policies for regular cars.

How you can reduce your classic car insurance premiums

Once you’ve found the best quote do all you can to reduce your costs even further – with classic car insurance this will mean agreeing to a specified annual mileage. The average car in the UK travels 12,000 miles a year but most classics do less than 3,000 miles. Consequently, if you have a conventional vehicle and only drive your classic on special occasions, agree to a low mileage limit. However, only set the limit at a level you know you will not surpass or you could invalidate a claim.

In addition, remember classic cars are often the target of thieves and vandals. Park them in a garage overnight and enhance their security. If you fear a modern alarm system would ruin the authenticity of your vehicle at least consider a removable steering wheel or gear-stick lock.

Remember too to take all the steps to cut your car insurance costs on a classic car that you would take on a conventional vehicle. This means driving safely to build up a no-claims bonus, avoiding driving convictions and taking out a higher, but comfortably affordable voluntary excess.