Is your car a classic? HM Revenue & Customs consider it to be so if it is valued at over £15,000 and was constructed at least 20 years ago. Unfortunately, insurance companies do not all use the same qualification so you should always check their terms before signing up. This is particularly important as classic car insurance frequently attracts a lower premium than cover for later vehicles. It is sensible to use a price comparison website as premiums do vary.
When choosing insurance for your classic car do bear in mind that comprehensive cover terms are not the same as for a newer vehicle. For a start, classic car insurance does not attract a no-claims bonus.
In order to ensure that your car is covered for its true value it is well worth obtaining a specialist valuation report from an independent expert. The vehicle’s true value can then be agreed with the insurer at policy inception. Do have the valuation updated annually. Vintage or classic models actually appreciate in value as they age and your insurance policy should follow suit.
Your insurance policy should cover any replacement parts that may be required in the event of an accident. If parts for your car are particularly difficult to obtain or are likely to be very expensive, always check that you are fully covered.
Insurers do not expect classic cars to clock up as much mileage as the family run about and will cap your annual mileage in the vicinity of 7,500. If you are likely to do more than this, tell your insurer and be prepared to pay a slightly higher premium. On the other hand, if you do less mileage than the insurance company’s maximum, you may be able to negotiate a lower premium.
If you enjoy showing your car at rallies and other such events, classic insurance will generally cover this but if you plan to hire the vehicle out for weddings and the like, you will require extended cover.
Classic or vintage cars generally have recognised societies or clubs. If you decide to join one of these clubs, not only will you be able to get together with like-minded enthusiasts but you should also be able to qualify for a healthy discount on your insurance premium of anything up to 15% which is well worth having.
In the event of your vehicle being temporarily off the road ‘in dock’, you can take out cover for fire, theft or damage provided the car is garaged. Remember though that the Continuous Insurance Enforcement rules dictate that you notify the DVLA under these circumstances.
As with modern vehicles your premium will be lower if your classic car is kept in a secure garage and you have it fitted with an approved alarm, immobiliser or tracking device.