Car Insurance for Classic Cars: What Makes it Different?

Hence, classic car insurance is different from regular. So, if you're a classic car owner in the UK, or considering becoming one, here's what you need to know about insurance coverage for classic cars.

1. Agreed Value vs. Market Value

One of the biggest differences between standard and classic car insurance is how the vehicle’s value is determined. 

• Market Value: With a regular car, the insurance payout is based on its current market value, which decreases over time due to depreciation.
• Agreed Value: For classic cars, the insurer and owner agree on the value of the vehicle, taking into account factors like its rarity, condition, and restoration work. This "agreed value" remains stable and ensures that the owner gets a fair payout in case of a total loss.

2. Limited Mileage Policies

Insurance for classic cars often offers limited mileage policies. This means that the owner agrees to drive the car for a limited number of miles each year, typically because classic cars are not used as daily vehicles but rather for special occasions, shows, or weekend drives. The fewer miles you drive, the lower your insurance premium.

3. Laid-Up Insurance

Many classic car owners store their vehicles during certain times of the year, especially winter, to protect them from harsh weather. For these periods, insurers offer laid-up policies, which cover your car while it's off the road. This means that while you’re not driving the vehicle, you’re still protected against risks like theft, fire, or damage while it's stored.

4. Specialist Cover for Restoration and Modifications

Classic car owners often restore or modify their vehicles. Classic car insurance typically covers restoration work and modifications, which are more common with older cars. Make sure to inform your insurer about any changes, as they can affect the agreed value of the car.

5. Spare Parts Coverage

One of the challenges of owning a classic car is finding spare parts, which can be rare and expensive. Many classic car insurance policies include spare parts coverage, ensuring that you're covered for the costs of replacing or repairing unique parts if they’re damaged or stolen.

6. Cherished Salvage

For classic car enthusiasts, sometimes the parts are as valuable as the whole car. If your vehicle is written off in an accident, some policies offer a cherished salvage option, meaning you can keep the salvaged vehicle and parts. This can be essential for those who plan to rebuild or restore their car after an accident.

7. Experienced Drivers Only

We know that classic car insurance is different! So, in most cases, classic car insurance is only available to experienced drivers—typically those over the age of 25 with a good driving record. This reflects the care and responsibility required to drive and maintain such vehicles.

Concluding Thoughts

Insurance for Classic cars in the UK is designed to cater to the specific needs of vintage car owners, offering tailored policies that protect the unique value and character of these vehicles. From agreed-value coverage to spare parts protection, classic car insurance provides peace of mind to ensure your cherished car stays protected on and off the road.