Classic Car Insurance – A Guide

If you’ve finally bought your dream classic car, you’ll want to make sure you protect your pride and joy and your investment as much as possible. You should consider specialist classic car insurance.

Does your new motor need specialist classic car insurance or will it be OK on a standard insurance policy? If you do need specialist cover where can you find the best deals? These are all questions that you’ll have about insuring your car – this guide is a starting point to getting your classic vehicle covered in the right way for the right price.

Is my car a classic car?

To be officially classed as 'classic' by HMRC your car must be worth at least £15,000 and be over 20 years old. However, this is just a guideline when it comes to insurance as no set criteria exist when insurance companies are classifying vehicles.

Each provider may do things differently, so it is worth speaking to them and properly doing your research before agreeing to a policy. They may, or may not, class your car as a classic and this will affect the kind of classic car cover they will offer.

Find out more about classic cars and how to buy the best vehicle for you in our post: Buying a classic car – a complete guide

Do I need specialist insurance for my classic car?

The exact answer to this question will depend on the specific vehicle you have and how you intend to use it. Is it a showpiece or a functional vehicle? It is possible to get everything you need with a standard fully comprehensive insurance policy, but you should take extra care to ensure that it provides all the coverage you need. Classic car owners have different needs than people who own newer cars.

The older and more “classic” your vehicle the harder it may be to find authentic parts for it. If something needs fixing or replacing this can be placed in the hands of your insurance provider. It is worth adding a clause to your policy that ensures that the replacement parts are authentic.

If you intend to take your classic car to car shows, car rallies and other events across the UK or even overseas, you need to inform your insurance provider. If you intend to use your car for events like weddings or photoshoots, you also need to make this known. This is all likely to affect the cost.

Where can I find classic car insurance?

A quick Google search will find your classic car insurance options from the big standard providers, down to smaller companies that specialise only in insuring heritage vehicles. A good option might be to go through one of the reputable cost comparison sites to see many options laid out in one place but be aware that many providers will not be included especially more specialist ones.

If you are working with a broker with expert knowledge in classic car, collectable car, and sport car finance to purchase your car it will be worth seeing if they work with any recommended partners or have any deals on offer.

How much does classic car insurance cost?

This again can vary depending on the type of vehicle you have and how you intend to use it. The fact that classic car owners tend to use their vehicle less can have a positive bearing on the running cost.  This reduces the possibility of accidents and keeps the mileage low.

While insurance on a true classic is likely to come in higher than a standard family car or small run-around, the reduced mileage and on-the-road maintenance can offset the higher insurance premiums making it more cost-effective.

If this lesser use is true for you as a classic car owner it should be very easy to build up a nice no-claim bonus, saving you even more in the long run.

Cheaper, more standard policies often stipulate a mileage limit, which you need to stick to make sure your policy doesn’t become invalid for any claims you need to make. This is where costs can creep up if you haven’t done your research and looked over the policy correctly.

With all the additional factors that come with insuring a classic car, you might find that it is more cost-effective to opt for a specialist policy that takes all this into account as standard. The best advice is to do your research, shop around, check the small print and question everything before signing up. That way you'll get classic car insurance that covers everything you need without the stuff you don't.