What\u2019s the difference between classic car insurance and regular car insurance?<\/h3><\/div>![\"Danny](\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2020\/07\/Danny-Butler.jpg\")
<\/p>
Finder insurance expert Danny Butler<\/a> answers <\/em><\/div><\/div>Classic car insurance and traditional car insurance are very similar in many ways. However, insurers that offer classic car insurance generally make some assumptions about the drivers of classic cars that can influence premiums.<\/p>
For instance, classic car drivers typically take extra special care of their cars to keep them in a good condition. Plus, classic cars are often second cars that are driven much less than run-of-the-mill cars and at less busy times. These tendencies lower the risk of classic car drivers needing to make a claim and can result in lower premiums.<\/p>
There is one significant difference between classic car insurance and a traditional policy \u2013 how the car is valued.<\/p>
Traditional insurance policies will generally only pay out what your car is currently worth, known as its \u201cmarket value\u201d, if it is stolen or written off. This is usually much less than what you originally paid, as cars depreciate in value over time.<\/p>
While it\u2019s easy to set a market value for most modern cars, figuring out how much a classic car is worth can be much trickier. Many will have had a lot of time and money spent on them to keep them maintained, so they will be worth more than their age might suggest. Some classic cars can even increase in value over time if demand for them is high.<\/p>
As a result, many classic car insurance policies use something called \u201cagreed value\u201d. It\u2019s a fixed sum, agreed between the driver and the insurer, that will be paid out in the event of it being stolen or written off. Depending on the value agreed, this can push up insurance premiums. However, it gives peace of mind that if disaster strikes your beloved set of wheels, you\u2019ll at least get back something close to its full financial value.<\/p>
Some insurers allow drivers to review this agreed value periodically.<\/p><\/div><\/div><\/div><\/article>
What does classic car insurance cover?<\/h3>
Classic car insurance will cover you for the same risks as regular car insurance. Subject to the level of cover you opt for, you\u2019ll be protected against the following:<\/p>
- Harm you cause to other people or their property if an accident is your fault<\/li>
- Theft of or vandalism to your car<\/li>
- Fire or severe weather damage to your car<\/li>
- Accidental damage to your car.<\/li><\/ul>
Extra features that are more unique to classic car insurance policies often include the following:<\/p>
- Agreed value cover.<\/strong> You and the insurer agree to a fixed value for your car that you\u2019ll receive if it\u2019s stolen or written off. This is usually higher than its market value would be set at.<\/li>
- Salvage retention.<\/strong> If you are involved in an accident and your insurer deems the vehicle repair too costly to justify, you have the option of either selling your car to your insurer for the agreed value or keeping your damaged car and receiving a percentage of the agreed value.<\/li>
- Cover during road rallies or festivals.<\/strong> Classic car owners like to show off their prized possessions by driving in rallies or displaying their cars at events. This may include taking part in motorsports or races, so check the details.<\/li><\/ul>
What are the most common classic car insurance exclusions and restrictions?<\/h3>
Classic car insurance comes with many of the same exclusions<\/a> as regular car insurance. So your insurance is likely to be rendered invalid if, for example, you drive under the influence of drugs or alcohol or fail to keep your car roadworthy.<\/p>Another restriction of some classic car policies is a cap on annual mileage (5,000 miles, for example). Choosing a policy with this restriction can keep premiums down, but you\u2019ll need to take care not to exceed it. If you suspect you might, let your insurer know in advance. If you don\u2019t, it could result in subsequent claims being declined.<\/p>
You may also find that some classic car insurance policies have a minimum driver age limit. Under 25s, for example, may have to search a wee bit harder to find affordable insurance.<\/p>
Are there different types of classic car insurance?<\/h3>
Technically, you can get the same 3 levels of cover (third party<\/a>, third party, fire and theft<\/a> and comprehensive<\/a>) as for any other car. Though, if you love your car as much as most classic fans do, you\u2019re probably going to opt for a comprehensive policy rather than lower-level cover that won\u2019t pay out a penny if you prang your valued vintage.<\/p>The other type of insurance you\u2019ll often come across in relation to classic cars is something called \u201claid-up\u201d cover. This insures a classic car against fire, theft and vandalism if it\u2019s temporarily off the road being restored, on display or in storage.<\/p>
What optional extras do I need if I drive a classic car?<\/h3>
You\u2019ll come across many of the same optional extras as for any other car. The following add-ons could be worth considering for classic cars:<\/p>
- Breakdown cover.<\/strong> Vintage cars aren\u2019t necessarily the most reliable, so breakdown cover<\/a> could be a valuable investment. Check levels of cover and any restrictions (on a car\u2019s age, for example) to make sure you have the protection you need.<\/li>
- European cover.<\/strong> Classic cars are usually driven for pure pleasure, and pursuit of that pleasure might take you to foreign shores. As standard, most car insurance only covers you on a third-party basis to drive in Europe<\/a>. You\u2019ll probably need to pay extra for comprehensive cover.<\/li>
- Business cover. <\/strong>Some classic cars can be in demand as transport for special events, such as weddings. If you want to use your car to earn a bit of extra income, or for any other business purpose<\/a>, you\u2019ll need to make sure you have the right cover.<\/li><\/ul>
What is \u201cagreed value\u201d for car insurance?<\/h3>
Agreed value<\/a> is where you and the insurer agree on a specific value that you\u2019ll receive in the event your car is stolen or written off. It\u2019s often used for classic cars because their age, combined with the level of restoration work that often goes into them, makes it hard to set a market value. Market value<\/a> is what\u2019s used for most modern cars, based on a car\u2019s resale value on the open market and taking depreciation into account.<\/p>How can I find the best classic car insurance?<\/h3>
With most car insurance searches, the best place to start is usually a price comparison site. This approach is less useful for vintage cars, as many mainstream insurers won\u2019t offer cover (or suitable cover) for genuine classics.<\/p>
Depending on your car, it doesn\u2019t hurt to try a comparison site. But you should also try a few brokers that specialise in classic car policies. If you\u2019re a member of a car club, it\u2019s worth checking if they offer any discounts with specific insurers too. Though remember a discount on an expensive policy may still leave you worse off than seeking out a cheaper underlying premium.<\/p>
What do I need to get a quote for classic car insurance?<\/h3>
To get a quote for classic car insurance, you\u2019ll need to supply all of the details that you would for any other car insurance quote (your age, your address, how you\u2019ll use the car and any history of claims or driving convictions).<\/p>
The main extra detail you\u2019ll often need for classic car insurance is evidence of the car\u2019s value, so you can set an \u201cagreed value\u201d on the car.<\/p>
Some insurers may accept a price you provide directly, backed by evidence such as small ads for similar vehicles in a similar condition and photos of the car from multiple angles, inside and out. Bills for recent restoration work you\u2019ve had done may also be helpful.<\/p>
Other insurers require a professional valuation, and this may be more straightforward than trying to put your own value on the car. Classic car clubs often have experts that can provide valuations, usually for a fee.<\/p>
How much does classic car insurance cost?<\/h3>
The cost of classic car insurance varies from insurer to insurer just as traditional policies do. Factors that play a part include the car\u2019s value, where you live, your age and your driving history.<\/p>
As always, it\u2019s best to shop around and compare quotes against the cover benefits. Bear in mind that going for the cheapest cover could be a false economy if it doesn\u2019t meet your needs.<\/p>
Is classic car insurance more expensive than regular car insurance?<\/h3>
Surprisingly enough, it\u2019s often cheaper. Classic car owners tend to drive their prized possessions safely and store them securely as well as go the extra mile to keep them in good condition. That, plus the fact they\u2019re usually driven less than your typical run-around, can mean that classic car drivers pay lower premiums than they might for a modern car of similar value.<\/p>
On the other hand, if a classic car is worth a great deal of money and the agreed value is set high to take this into consideration, this can push premiums up.<\/p>
How can I cut the cost of classic car insurance?<\/h3>- Increase security.<\/strong> If your car is not currently fitted with an alarm, think about adding one to reduce your premium.<\/li>
- Have a secure location to park your car.<\/strong> Cars kept in a locked garage or on a secure driveway are usually cheaper to insure.<\/li>
- Limit your mileage.<\/strong> Agreeing to limit the distance you drive each year can make for lower premiums, especially if your classic car is a second car.<\/li>
- Increase your excess.<\/strong> Agreeing to pay a bigger voluntary excess<\/a> could make your overall premium cheaper. But remember that your insurer won\u2019t pay out for a claim that costs less than your excess. So be careful about making it too high, as it could leave you out of pocket if damage occurs.<\/li>
- Limit optional extras if you don\u2019t need them.<\/strong> Think carefully about which optional extras<\/a> you really want as adding extra protection to your policy will generally push the price up too.<\/li>
- Avoid paying monthly.<\/strong> If you can, try to pay for your premium in one go as you\u2019ll pay interest if the premium is spread out over the year.<\/li>
- Consider specialist insurers.<\/strong> Insurers that focus on classic cars may offer more targeted, and potentially cheaper, cover.<\/li>
- Join a classic car club.<\/strong> Whether you\u2019ve got a Morris Minor or a retro Mini, there\u2019s probably a national or regional car club for drivers that share your passion. Many offer member perks, including discounts on insurance.<\/li>
- Shop around.<\/strong> Don\u2019t simply renew your car insurance by default every year. You could end up paying more than you need. Shop around and compare your options to find the best deal.<\/a> It could even be worth trying to negotiate a better deal with your existing insurer if you like everything about your policy but the price.<\/li><\/ul>
Can I get temporary insurance for a classic car?<\/h3>
Yes, there are providers that will be happy to insure a classic car for a short period \u2013 anything from a few hours to 30 days. This could work well if you want to test drive a potential purchase or if your car spends most of its time off the road in storage and is only released for a few days a year. Bear in mind, though, that temporary policies may not offer some of the benefits of a tailored, annual policy \u2013 such as agreed value cover or salvage retention.<\/p>
Is there a limit on how many miles I can drive under a classic car insurance policy?<\/h3>
It depends on the policy. In exchange for lower premiums, some may cap your annual mileage at a lower limit; 5,000 miles is fairly common. If you start getting close to this cap, you\u2019ll need to let your insurer know. They\u2019ll probably charge you extra to exceed it, but doing so without telling them could invalidate your policy.<\/p>
What are the most popular classic cars?<\/h3>
Given that, by most definitions, a car counts as a classic if it\u2019s more than 15 years old and worth more than \u00a315,000, the most widely owned models that hit these marks may simply be cars that are getting on a bit and that many of us wouldn\u2019t think of as particularly \u201cclassic\u201d. So, putting that blunt criteria aside and going instead for cars that most of us would instantly recognise as icons, classics that have more than their fair share of fans include the following:<\/p>
- The Mini Cooper<\/li>
- The Volkswagen Beetle<\/li>
- Old-school Land Rovers<\/li>
- The Jaguar E-Type<\/li>
- James Bond\u2019s car of choice, the Aston Martin DB5<\/li><\/ul>
Bottom line<\/h3>
Classic car insurance can be surprisingly affordable and often offers extra protection for your vintage icon above and beyond what you\u2019d get with a regular policy. It\u2019s well worth checking specialist insurance brokers alongside mainstream providers, as they may offer enhanced cover for a competitive price. Don\u2019t forget to keep an eye out for any restrictions or exclusions that could render your cover invalid, though; the last thing you want is to prang your prized possession and discover you\u2019ve fallen foul of a clause you hadn\u2019t spotted.<\/p>
Frequently asked questions<\/h3>- \n \n
\n
<\/p>
Classic car insurance and traditional car insurance are very similar in many ways. However, insurers that offer classic car insurance generally make some assumptions about the drivers of classic cars that can influence premiums.<\/p>
For instance, classic car drivers typically take extra special care of their cars to keep them in a good condition. Plus, classic cars are often second cars that are driven much less than run-of-the-mill cars and at less busy times. These tendencies lower the risk of classic car drivers needing to make a claim and can result in lower premiums.<\/p>
There is one significant difference between classic car insurance and a traditional policy \u2013 how the car is valued.<\/p>
Traditional insurance policies will generally only pay out what your car is currently worth, known as its \u201cmarket value\u201d, if it is stolen or written off. This is usually much less than what you originally paid, as cars depreciate in value over time.<\/p>
While it\u2019s easy to set a market value for most modern cars, figuring out how much a classic car is worth can be much trickier. Many will have had a lot of time and money spent on them to keep them maintained, so they will be worth more than their age might suggest. Some classic cars can even increase in value over time if demand for them is high.<\/p>
As a result, many classic car insurance policies use something called \u201cagreed value\u201d. It\u2019s a fixed sum, agreed between the driver and the insurer, that will be paid out in the event of it being stolen or written off. Depending on the value agreed, this can push up insurance premiums. However, it gives peace of mind that if disaster strikes your beloved set of wheels, you\u2019ll at least get back something close to its full financial value.<\/p>
Some insurers allow drivers to review this agreed value periodically.<\/p><\/div><\/div><\/div><\/article>
What does classic car insurance cover?<\/h3>
Classic car insurance will cover you for the same risks as regular car insurance. Subject to the level of cover you opt for, you\u2019ll be protected against the following:<\/p>
- Harm you cause to other people or their property if an accident is your fault<\/li>
- Theft of or vandalism to your car<\/li>
- Fire or severe weather damage to your car<\/li>
- Accidental damage to your car.<\/li><\/ul>
Extra features that are more unique to classic car insurance policies often include the following:<\/p>
- Agreed value cover.<\/strong> You and the insurer agree to a fixed value for your car that you\u2019ll receive if it\u2019s stolen or written off. This is usually higher than its market value would be set at.<\/li>
- Salvage retention.<\/strong> If you are involved in an accident and your insurer deems the vehicle repair too costly to justify, you have the option of either selling your car to your insurer for the agreed value or keeping your damaged car and receiving a percentage of the agreed value.<\/li>
- Cover during road rallies or festivals.<\/strong> Classic car owners like to show off their prized possessions by driving in rallies or displaying their cars at events. This may include taking part in motorsports or races, so check the details.<\/li><\/ul>
What are the most common classic car insurance exclusions and restrictions?<\/h3>
Classic car insurance comes with many of the same exclusions<\/a> as regular car insurance. So your insurance is likely to be rendered invalid if, for example, you drive under the influence of drugs or alcohol or fail to keep your car roadworthy.<\/p>
Another restriction of some classic car policies is a cap on annual mileage (5,000 miles, for example). Choosing a policy with this restriction can keep premiums down, but you\u2019ll need to take care not to exceed it. If you suspect you might, let your insurer know in advance. If you don\u2019t, it could result in subsequent claims being declined.<\/p>
You may also find that some classic car insurance policies have a minimum driver age limit. Under 25s, for example, may have to search a wee bit harder to find affordable insurance.<\/p>
Are there different types of classic car insurance?<\/h3>
Technically, you can get the same 3 levels of cover (third party<\/a>, third party, fire and theft<\/a> and comprehensive<\/a>) as for any other car. Though, if you love your car as much as most classic fans do, you\u2019re probably going to opt for a comprehensive policy rather than lower-level cover that won\u2019t pay out a penny if you prang your valued vintage.<\/p>
The other type of insurance you\u2019ll often come across in relation to classic cars is something called \u201claid-up\u201d cover. This insures a classic car against fire, theft and vandalism if it\u2019s temporarily off the road being restored, on display or in storage.<\/p>
What optional extras do I need if I drive a classic car?<\/h3>
You\u2019ll come across many of the same optional extras as for any other car. The following add-ons could be worth considering for classic cars:<\/p>
- Breakdown cover.<\/strong> Vintage cars aren\u2019t necessarily the most reliable, so breakdown cover<\/a> could be a valuable investment. Check levels of cover and any restrictions (on a car\u2019s age, for example) to make sure you have the protection you need.<\/li>
- European cover.<\/strong> Classic cars are usually driven for pure pleasure, and pursuit of that pleasure might take you to foreign shores. As standard, most car insurance only covers you on a third-party basis to drive in Europe<\/a>. You\u2019ll probably need to pay extra for comprehensive cover.<\/li>
- Business cover. <\/strong>Some classic cars can be in demand as transport for special events, such as weddings. If you want to use your car to earn a bit of extra income, or for any other business purpose<\/a>, you\u2019ll need to make sure you have the right cover.<\/li><\/ul>
What is \u201cagreed value\u201d for car insurance?<\/h3>
Agreed value<\/a> is where you and the insurer agree on a specific value that you\u2019ll receive in the event your car is stolen or written off. It\u2019s often used for classic cars because their age, combined with the level of restoration work that often goes into them, makes it hard to set a market value. Market value<\/a> is what\u2019s used for most modern cars, based on a car\u2019s resale value on the open market and taking depreciation into account.<\/p>
How can I find the best classic car insurance?<\/h3>
With most car insurance searches, the best place to start is usually a price comparison site. This approach is less useful for vintage cars, as many mainstream insurers won\u2019t offer cover (or suitable cover) for genuine classics.<\/p>
Depending on your car, it doesn\u2019t hurt to try a comparison site. But you should also try a few brokers that specialise in classic car policies. If you\u2019re a member of a car club, it\u2019s worth checking if they offer any discounts with specific insurers too. Though remember a discount on an expensive policy may still leave you worse off than seeking out a cheaper underlying premium.<\/p>
What do I need to get a quote for classic car insurance?<\/h3>
To get a quote for classic car insurance, you\u2019ll need to supply all of the details that you would for any other car insurance quote (your age, your address, how you\u2019ll use the car and any history of claims or driving convictions).<\/p>
The main extra detail you\u2019ll often need for classic car insurance is evidence of the car\u2019s value, so you can set an \u201cagreed value\u201d on the car.<\/p>
Some insurers may accept a price you provide directly, backed by evidence such as small ads for similar vehicles in a similar condition and photos of the car from multiple angles, inside and out. Bills for recent restoration work you\u2019ve had done may also be helpful.<\/p>
Other insurers require a professional valuation, and this may be more straightforward than trying to put your own value on the car. Classic car clubs often have experts that can provide valuations, usually for a fee.<\/p>
How much does classic car insurance cost?<\/h3>
The cost of classic car insurance varies from insurer to insurer just as traditional policies do. Factors that play a part include the car\u2019s value, where you live, your age and your driving history.<\/p>
As always, it\u2019s best to shop around and compare quotes against the cover benefits. Bear in mind that going for the cheapest cover could be a false economy if it doesn\u2019t meet your needs.<\/p>
Is classic car insurance more expensive than regular car insurance?<\/h3>
Surprisingly enough, it\u2019s often cheaper. Classic car owners tend to drive their prized possessions safely and store them securely as well as go the extra mile to keep them in good condition. That, plus the fact they\u2019re usually driven less than your typical run-around, can mean that classic car drivers pay lower premiums than they might for a modern car of similar value.<\/p>
On the other hand, if a classic car is worth a great deal of money and the agreed value is set high to take this into consideration, this can push premiums up.<\/p>
How can I cut the cost of classic car insurance?<\/h3>
- Increase security.<\/strong> If your car is not currently fitted with an alarm, think about adding one to reduce your premium.<\/li>
- Have a secure location to park your car.<\/strong> Cars kept in a locked garage or on a secure driveway are usually cheaper to insure.<\/li>
- Limit your mileage.<\/strong> Agreeing to limit the distance you drive each year can make for lower premiums, especially if your classic car is a second car.<\/li>
- Increase your excess.<\/strong> Agreeing to pay a bigger voluntary excess<\/a> could make your overall premium cheaper. But remember that your insurer won\u2019t pay out for a claim that costs less than your excess. So be careful about making it too high, as it could leave you out of pocket if damage occurs.<\/li>
- Limit optional extras if you don\u2019t need them.<\/strong> Think carefully about which optional extras<\/a> you really want as adding extra protection to your policy will generally push the price up too.<\/li>
- Avoid paying monthly.<\/strong> If you can, try to pay for your premium in one go as you\u2019ll pay interest if the premium is spread out over the year.<\/li>
- Consider specialist insurers.<\/strong> Insurers that focus on classic cars may offer more targeted, and potentially cheaper, cover.<\/li>
- Join a classic car club.<\/strong> Whether you\u2019ve got a Morris Minor or a retro Mini, there\u2019s probably a national or regional car club for drivers that share your passion. Many offer member perks, including discounts on insurance.<\/li>
- Shop around.<\/strong> Don\u2019t simply renew your car insurance by default every year. You could end up paying more than you need. Shop around and compare your options to find the best deal.<\/a> It could even be worth trying to negotiate a better deal with your existing insurer if you like everything about your policy but the price.<\/li><\/ul>
Can I get temporary insurance for a classic car?<\/h3>
Yes, there are providers that will be happy to insure a classic car for a short period \u2013 anything from a few hours to 30 days. This could work well if you want to test drive a potential purchase or if your car spends most of its time off the road in storage and is only released for a few days a year. Bear in mind, though, that temporary policies may not offer some of the benefits of a tailored, annual policy \u2013 such as agreed value cover or salvage retention.<\/p>
Is there a limit on how many miles I can drive under a classic car insurance policy?<\/h3>
It depends on the policy. In exchange for lower premiums, some may cap your annual mileage at a lower limit; 5,000 miles is fairly common. If you start getting close to this cap, you\u2019ll need to let your insurer know. They\u2019ll probably charge you extra to exceed it, but doing so without telling them could invalidate your policy.<\/p>
What are the most popular classic cars?<\/h3>
Given that, by most definitions, a car counts as a classic if it\u2019s more than 15 years old and worth more than \u00a315,000, the most widely owned models that hit these marks may simply be cars that are getting on a bit and that many of us wouldn\u2019t think of as particularly \u201cclassic\u201d. So, putting that blunt criteria aside and going instead for cars that most of us would instantly recognise as icons, classics that have more than their fair share of fans include the following:<\/p>
- The Mini Cooper<\/li>
- The Volkswagen Beetle<\/li>
- Old-school Land Rovers<\/li>
- The Jaguar E-Type<\/li>
- James Bond\u2019s car of choice, the Aston Martin DB5<\/li><\/ul>
Bottom line<\/h3>
Classic car insurance can be surprisingly affordable and often offers extra protection for your vintage icon above and beyond what you\u2019d get with a regular policy. It\u2019s well worth checking specialist insurance brokers alongside mainstream providers, as they may offer enhanced cover for a competitive price. Don\u2019t forget to keep an eye out for any restrictions or exclusions that could render your cover invalid, though; the last thing you want is to prang your prized possession and discover you\u2019ve fallen foul of a clause you hadn\u2019t spotted.<\/p>
Frequently asked questions<\/h3>
- \n \n
\n
- \n
- Have a secure location to park your car.<\/strong> Cars kept in a locked garage or on a secure driveway are usually cheaper to insure.<\/li>
- European cover.<\/strong> Classic cars are usually driven for pure pleasure, and pursuit of that pleasure might take you to foreign shores. As standard, most car insurance only covers you on a third-party basis to drive in Europe<\/a>. You\u2019ll probably need to pay extra for comprehensive cover.<\/li>
- Salvage retention.<\/strong> If you are involved in an accident and your insurer deems the vehicle repair too costly to justify, you have the option of either selling your car to your insurer for the agreed value or keeping your damaged car and receiving a percentage of the agreed value.<\/li>
- Agreed value cover.<\/strong> You and the insurer agree to a fixed value for your car that you\u2019ll receive if it\u2019s stolen or written off. This is usually higher than its market value would be set at.<\/li>