08 August 2024
Is classic car insurance cheaper?
5 minutes
If you own a classic car, proper insurance is likely to be high on your list of priorities. This isn’t your typical run-around kind of vehicle, after all. It’s something special. Parts can be difficult to replace and repairs can be expensive. The right insurance should be able to protect you if anything goes wrong. But which type of insurance should you go for? Is classic car insurance cheaper than standard insurance?
Here, we answer these questions, and offer some insight on the factors that affect the cost of classic car insurance, and tips on how to lower your premiums.
Let’s get started.
Is classic car insurance cheaper than standard car insurance?
Yes, classic car insurance (also called vintage or heritage car insurance) is typically cheaper than standard car insurance for a similar-sized vehicle — sometimes substantially so. This is often because:
- Classic cars tend to be driven less than everyday vehicles, and often at lower speed limits. They’re usually used as a secondary car (this might even be a requirement when you take out classic car insurance), and often spend a considerable amount of time in a garage or lock-up.
- Classic cars are usually owned by car-loving enthusiasts who maintain their vehicles well.
From an insurer’s perspective, you’re probably less likely to claim for a vintage car than an ordinary car. Because you’re considered less of a risk, your premiums should be lower.
Your car does need to qualify for classic car insurance in the first place, of course.
So, how old does a car need to be for classic insurance?
You might be surprised to learn that cars don’t need to be that old to be considered classic, though what qualifies as a classic car varies from one insurer to another.
Insurers often follow the guidance of HMRC, which considers a car to be classic when it’s over 15 years old and has a market value of £15,000 or more. However, some insurers might require the car to be 25 or 30 years old in order to qualify for classic car insurance. (It’s worth bearing in mind that, as of 1 April 2024, cars that were built before 1 January 1984 are exempt from paying car tax.)
Some insurers also stipulate that your classic car needs to be used as a secondary car, rather than your primary vehicle. If you do use your classic car as your primary vehicle, your insurer might require you to limit your annual mileage or not use it for business purposes.
It’s worth chatting to an experienced broker to uncover the unique criteria that different insurers hold.
What does classic car insurance cover?
Classic car insurance isn’t all that dissimilar from standard car insurance. You’ll still have the option of:
- Third-party insurance, which protects you against damage to other people and their vehicles. Remember, your vehicle and your personal health won’t be protected in the event of an incident. If keeping your vintage car protected is important to you, then third-party cover isn’t going to be sufficient.
- Third-party, fire and theft insurance, which is the same as the option above, but also protects you against fire damage and theft.
- Comprehensive cover, which protects you comprehensively, including you, your, your car and other people and vehicles.
That said, vintage car insurance is designed to cater to the characteristics and value of classic cars, as well as the driving habits of their owners. As a result, certain limits and restrictions typically apply, such as:
- Your car’s age
- Its value
- Its annual mileage
- What you use it for
- Where you park it
When you take out your policy, it’s a good idea to agree what your classic car is worth with your insurer. This is called an “agreed valuation”, and gives you the peace of mind that, if your car is stolen or written off, you’ll be given an accurate and fair amount of money. Without an agreed valuation, your insurer will likely give you the market rate for your car. Given the variable costs of classic cars, and how much you may spend on servicing and restoring it over time, you may ultimately lose money without this agreement in place.
To ensure you’re properly protected, you might also consider including some of the following add-ons to your policy:
- Restoration cover: Classic cars often need specialist work. This add-on will protect your car if any damage occurs while it’s being restored.
- Wedding car usage: If you own a classic car, you’ve likely been asked to use it at a wedding or prom once or twice. This sort of coverage will ensure your car is protected if it’s being used for this purpose.
- Legal protection: Legal protection allows you to claim for any legal costs associated with an incident your car is involved in.
- European cover: Do you ever take your car over the channel? If so, make sure you’re properly insured by adding European cover.
What factors influence the cost of classic car insurance?
Like other types of insurance, there’s no one-size-fits-all cost for classic car insurance. What you pay will depend on several factors, including:
- The vehicle’s value: This is an obvious one, and applies as much to standard cars as it does to classic cars. Higher valued cars will almost always cost more to insure.
- Your age, level of experience and claims history: New and young drivers tend to pay more for car insurance, including classic car insurance. If you’re an older, more experienced driver, and you have an excellent claims history, you’ll generally receive a better rate.
- How much you use it: Cars with lower mileage tend to be cheaper to insure. Less frequent use means lower risk.
- How you store it: Cars kept in secure locations like garages or lock-ups are cheaper to insure. Make sure you discuss your storage situation with insurers when you’re scouting for classic car insurance quotes.
- Condition and maintenance: Well-maintained cars that are kept in good condition also get bonus points from insurers. Your insurer may look at your car’s service history to assess this.
How can I lower my classic car insurance premiums?
Looking to get the best deal on your classic car insurance? Following some of these tips may help to lower your premiums:
- Limit your mileage: If you don’t drive your car that often, opting for a limited mileage policy will help to lower your premiums.
- Join a classic car club: This doesn’t apply in every instance, but some insurers offer discounts or specialist policies to members of recognised classic car clubs.
- Enhance your car’s security: Anti-theft devices and other security features can reduce the cost of your insurance. Look into alarms, immobilisers, and tracking systems.
- Garage storage: Keep your car in a locked garage or secure storage space when you're not using it.
- Bundle your policies: Do you have other types of insurance in place with a particular provider? Consider bundling your classic car insurance with other policies from the same insurer for a multi-policy discount.
- Shop around: Make sure you compare quotes from multiple insurers to find the best deal.
In summary: Is it worth getting classic car insurance?
If your car meets the criteria for classic car insurance, then taking out classic car insurance is almost always cheaper than standard car insurance.
Insurers usually consider classic cars to be lower risk than everyday vehicles because they’re usually driven less frequently, and are often well loved and maintained. Your classic car coverage will depend on your car’s age, value, annual mileage, and intended purpose.
If you’d like to lower your classic car premiums, you might consider limiting your mileage, joining a classic car club, and enhancing your car’s security. Where you store your car is also an important factor.
Ready to insure your classic car? The team at Howden understand that classic car owners aren't like ordinary motorists. We know that you require a specialist team that is ready to treat your favourite set of wheels with the care it deserves. Contact us today so that we can find the coverage that’s right for you.
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