Classic car insurance

How much is classic car insurance?

Classic car insurance is often cheaper than a standard policy. Insurers recognise that older vehicles have lower speeds and simpler mechanics than modern vehicles, as well as owners who look after their cars well.

That all means they can classify them as a lower risk and offer cheaper premiums.

There are other benefits to classic car insurance too - a specialist policy can give you extra cover designed specifically for your classic car.

You’ll be covered for all the usual things like fire, theft and third-party damages. But you’ll also be able to get additional cover for restoration, exhibiting your car and racing on track days.

Classic car insurance will also cover repairs which can be more expensive for vintage cars than for standard ones, as replacement parts can be harder to find.

There are ways you can lower the cost of your car insurance, like limiting your mileage, fitting a modern immobiliser and tracking device, joining an official car club and paying annually.

What to watch out for

There are a few things you can check to make sure a classic car policy's right for you.

Your car’s value

Some classic car policies will use agreed value instead of market value.

Standard car insurance policies will only pay out the current market value of your car if it's stolen or written off. That can leave classic car owners out of pocket because they've spent time and money lovingly restoring their car to be worth more than the market value.

With an agreed value policy the insurer instead sets a fair value with you at the outset of the policy - and that's what you'll receive if your car's stolen or written off.

Make sure you get an agreed valuation with your insurer before the policy starts.

It won’t use the market value of your car if it’s written off - the effort you’ve put into maintaining it will form the basis of the payout instead.

Mileage limitations

Some insurers assume you only drive your classic car occasionally and put a very low limit on your annual mileage.

You might even be asked to sign a mileage declaration stating you'll stay under an agreed mileage and provide a photograph of your odometer at the policy's outset.

If you use your classic car on the daily commute, make sure you stay within the mileage limits. If you think you might exceed the agreed mileage, tell your insurer immediately so it can increase it to make sure you're still covered.

Classic car breakdown

Vintage cars aren't always reliable, so make sure you have some form of classic car breakdown cover. It won't necessarily be part of your classic car insurance policy as standard.

Some insurers offer breakdown as a policy add on when you buy classic car insurance - carefully review the policy features and cost of the combined policy and compare it with standalone cover before making a decision.

Look for policies with roadside assistance and local recovery. Some classic cars can be excluded from classic breakdown policies because they pose a high risk to insurers, and are more expensive as a result.

Driving a classic car in Europe

If you use your classic car to drive not just on UK roads, but around Europe too, make sure your classic car insurance policy covers you for overseas driving.

Most car insurance policies with EU cover built-in will give you the lowest amount of protection required by law - third party only. If you're involved in a traffic accident, you'll have to pay for your repairs without the support of the insurer. It's an expensive oversight if you weren't aware the level of cover drops when you're outside of the UK.

Read your policy carefully and ask your classic car insurer for extra protection, if the cover is insufficient.