Classic cars are different to everyday vehicles, and their insurance needs can differ too. Whether you own a vintage vehicle, a restored classic or a modern collectible, it’s important to have the right cover in place to suit your car’s specific needs.
What is classic car insurance?
Classic car insurance is a type of car insurance designed for older, collectible or historically significant vehicles that are generally driven less frequently than everyday cars. Some insurers offer specialist policies, while others may cover classic vehicles under standard car insurance policies.
Older vehicles are generally classified into three categories based on when they were manufactured:
- Veteran cars: manufactured before 1919.
- Vintage cars: manufactured between 1919 and 1930.
- Classic cars: generally vehicles aged 15 years or older, although definitions vary.
However, individual insurers may have different age requirements for their classic car insurance policies.
A vehicle doesn’t necessarily have to be decades old to qualify, either. Rare, high-performance and modern collectible cars may also be eligible for specialist insurance, including certain prestige vehicles and American classics.
Is my car eligible for classic car insurance?
Whether your car qualifies for specialist classic car insurance depends on the insurer and how you use and maintain your vehicle. Along with its age and condition, insurers may consider:
- How often you drive: some policies are designed for occasional or recreational use rather than everyday driving.
- Annual kilometres: you may be restricted to a certain number of kilometres each year.
- Where you keep your car: some insurers require secure storage, such as a locked garage.
- Who drives your car: age restrictions and driving history requirements may apply.
These conditions vary between insurers, so it’s important to check the policy’s eligibility requirements before applying.
What does specialist classic car insurance cover?
Specialist classic car insurance can offer features and benefits designed for collectible vehicles that aren’t always available through standard car insurance policies.
Depending on the insurer and policy, these may include:
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Choice of repairer
some policies allow you to choose your preferred repairer if your car is damaged. This can be particularly valuable for classic car owners who want their vehicle repaired by someone with experience working on older vehicles and sourcing specialist parts.
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Laid-up cover
designed for classic cars that are kept off the road for extended periods, such as during restoration or storage. It can protect against risks such as fire, theft and vandalism while the vehicle isn’t being driven, depending on the policy.
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Limited use cover
designed for vehicles driven occasionally, such as for weekend trips, exhibitions or car club events. Because the vehicle spends less time on the road, premiums may be lower than for cars used regularly, although restrictions on use and annual kilometres may apply.
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Modifications cover
some policies can cover approved modifications, upgrades and restoration work, including the cost of specialist or replacement parts. It’s important to disclose any changes to your insurer to make sure they’re accounted for in your cover.
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Salvage rights
some policies allow you to retain your vehicle if it’s declared a total loss rather than surrendering it to the insurer. This can be valuable if you want to restore the car or salvage rare parts, although eligibility may depend on the vehicle’s age and policy conditions.
Some insurers may also offer optional roadside assistance or discounts for insuring multiple vehicles.
The exact features available and the events covered will depend on the policy, so it’s important to check the PDS before choosing insurance.
Why is agreed value important for classic car insurance?
Unlike everyday vehicles, classic cars don’t necessarily depreciate as they age. Some may actually increase in value due to their rarity, condition or demand among collectors.
This can make market value insurance, where the insurer determines what your car is worth at the time of a claim, less suitable as it may not reflect its value to collectors or the money you’ve invested in restoring it.
With agreed value insurance, you and your insurer agree on the car’s insured value when taking out or renewing the policy. This provides greater certainty about how much you could receive if your car is stolen or written off, subject to any applicable excesses, deductions and policy conditions.
It’s worth reviewing your agreed value at renewal, particularly if you’ve completed restoration work or your car’s value has changed.
How much does classic car insurance cost?
There’s no standard price for classic car insurance, with premiums varying considerably depending on the vehicle, how it’s used and the level of cover selected.
Some of the main factors that can affect the cost include:
- Make, model and age: rare or older vehicles may cost more to insure if replacement parts are difficult to source or repairs require specialist expertise.
- Vehicle value: the amount your car is insured for can influence your premium, with agreed value cover generally costing more than market value cover.
- Condition: your car’s condition, restoration history and any modifications may affect how an insurer assesses its value and risk.
- Usage and kilometres: cars driven occasionally or over shorter distances may attract lower premiums than those used regularly.
- Storage and location: keeping your car in a secure garage may help reduce premiums compared to parking on the street. Where you live can also affect the cost.
- Driver details: your age, driving experience, claims history and driving record can influence how much you pay.
- Level of cover: comprehensive insurance generally costs more than more limited cover, while laid-up policies may be cheaper for vehicles kept off the road.
Some specialist insurers also offer multi-vehicle discounts, which could help reduce the cost of insuring a collection of classic cars.
While limited use and laid-up cover may offer opportunities to save, it’s important to consider any restrictions and ensure the policy provides the protection your vehicle needs.
Can I insure a classic car with standard car insurance?
Yes, depending on the vehicle and insurer, you may be able to cover your classic car under a standard car insurance policy rather than taking out specialist cover.
There are three levels of car insurance to choose from:
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Third party property damage (TPPD)
Covers damage your car causes to other people’s vehicles or property, but generally not damage to your own car.
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Third party fire and theft (TPFT)
Includes third party property damage cover, plus protection if your car is stolen or damaged by fire.
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Comprehensive
Provides broader protection, including damage to your own vehicle from accidents, theft, fire and certain weather events.
You’ll also need compulsory third party (CTP) insurance to register your vehicle for road use. This covers certain injuries or deaths caused by motor vehicle accidents, rather than damage to vehicles or property.
While you can choose from these levels of cover if your insurer accepts the vehicle, comprehensive insurance may be particularly suitable for classic cars, as it provides broader protection against damage or loss. This can be important for collectible vehicles that may be expensive or difficult to repair or replace.
When comparing comprehensive policies, look for features such as agreed value, modifications cover and choice of repairer, which can be especially valuable for classic car owners.
While Savvy doesn’t compare specialist classic car insurance, you can compare standard car insurance policies to see what type of cover is available for your vehicle.
