Do You Need Classic Car Insurance?

Whenever we think of a ‘classic car’, and classic car insurance, images of a car from a bygone era and races to Brighton once a year immediately spring to mind. However, if you’re currently thinking of buying a second-hand car, then there’s a chance you may be asked to insure this as a classic car.

What is a ‘classic’ car?

In most cases, people are unaware that insofar as insuring an older car is concerned, there is a vast difference between owning a classic car, a vintage car and a veteran car, and that while each of these has their own specialist car insurance category, in most cases taking out a classic car insurance policy covers all three.

While the exact specifications of what constitutes a classic car, vintage car, or veteran car varies from insurer-to-insurer, essentially to qualify for such grand status the car must be:

• veteran cars : manufactured prior to 1903
• vintage cars : manufactured between 1903 and 1933
• classic cars : any car that is more than 15 years old, but that was manufactured after 1933

Things to consider when taking out classic car insurance

Although it is often widely reported that classic car insurance is cheaper than standard ‘new’ car insurance, you do need to consider the following factors:

1. Valuation : the value of a classic car can often be a very contentious issue. What you may consider to be the best car ever manufactured, your insurer may think is a heap of junk. As the saying goes: “beauty is in the eye of the beholder”, and never has that been more appropriate than when considering the value of a classic car! As a result, it is essential that you and your insurer agree to a guaranteed agreed valuation (known as a “GAV”) for your classic car. Yes, this will cost you, but it’ll save any dispute over the value of the car at a later date.
2. Mileage : one of the major downsides with having a classic car is that some classic car insurance policies limit the number of miles you can drive the car each year. In the case of veteran cars, the mileage is little more than you’ll need to complete the London to Brighton road race and ‘show’ the car at a couple of events. So, you need to read this provision of the classic car insurance policy very carefully as any additional miles will likely invalidate your motor insurance policy.
3. Insurance provider : in most cases, mainstream insurance providers that you see advertising car insurance will not agree to provide classic car insurance. Rather, you need to insure your classic car with a specialist classic car insurance provider. Therefore, when dealing with your motor insurance company, make sure they know you are talking about insuring a classic car.

So, if you’re feeling nostalgic and thinking of buying a Ford Capri, keep in mind that while it was the symbol of modern fast living for us in our youth, it’s going be a classic as far as the insurance company is concerned!