Classic car insurance is designed for cars which are used as second vehicles, either for leisure driving or simply for taking to collector’s shows.
In most cases this is reflected by considerably lower premiums. This can be very important as insuring a classic car under a standard motor insurance policy could be very expensive because of the value, particularly if it is a unique or rare model. Specialist insurance policies also take account of the fact that classic cars hold their value much better than new cars which suffer heavy depreciation. This will affect the replacement value payment you will get if the car is written off.
What Do Insurance Companies Consider A Classic Car?
The definition of this varies immensely. Generally it’s based on a car’s age, with 10 or 15 year minimums common. Some insurers or other bodies will also impose a minimum value and refuse to cover an old banger.
What Restrictions Are Imposed On Insured Classic Cars?
The general principle is that it shouldn’t be used as a main vehicle. How this is enforced varies. This most common one is a maximum annual mileage, usually a four figure amount. Sometimes there will be more specific restrictions such as the car not being used for everyday driving such as commuting or shopping. While it isn’t always a specific policy requirement, it will often be expected that the policyholder will have at least one other car which they use as their main vehicle.
With most policies, the car can’t be used for racing or other motorsports activities. Some insurers even bar the driver from making alterations to the car to make it more suitable for such activities.
What If I Get Close To My Annual Mileage Limit?
It is very important not to exceed the limit without permission as this will invalidate the policy and mean a subsequent claim is rejected. Some insurers offer a range of mileage options and will let the driver change to a higher limit as long as they give advance notice and pay the extra premium.
How Can I Get A Discounted Classic Car Insurance Quote?
Many insurers will offer discounts to registered members of particular classic car clubs.
What Is The Replacement Value?
Because classic car prices often vary immensely, many insurers do not simply use a “book” value and instead agree a specific price for the insured vehicle. This is usually the fair market value, which is a reasonable estimate of what the vehicle would go for in a “willing” sale, meaning neither the buyer or seller was negotiating from a desperate position.
What Other Differences Are There With A Classic Policy?
In most classic policies, insurers do not offer a no claims policy. This is because the low mileage limit means it is much less likely the driver will need to make a claim anyway. Most insurers will give the driver written confirmation that they have not claimed on the policy if the driver needs such proof to get a cheaper policy on a different vehicle.
By : Simon Christopher