Classic car insurance
Classic car owners often pamper their vehicles with no expenses speared. But do this classic car fanatics take as much time and trouble over their vehicle insurance? Classic motor insurance is often less expensive than the conventional car, but it’s imperative that the right policy is bought when looking for cover. You can compare over 100 quotes easily with our classic car insurance comparison service from Quotezone.
Some classic car enthusiasts take their cars out only weekends and during the summer months because they are not the average vehicle that used on a daily basis- they are prized possessions. Few years back, they could easily allow their insurance to lapse during the winter months when their vehicle is off the road. This days it’s impossible to leave your vehicle untaxed and uninsured, new insurance laws that has recently been implemented which makes it an offence .
And if you do not drive your classic car at all then you could apply for Statutory off Road Notification (SORN) to the Driving and licensing Agency (DVLA)- then there would be no legal obligation to buy road tax and insurance.
How are classic cars qualified?
According to the tax man (HMRS), a vehicle is classified as a classic car if it’s more than 20 years of age and commands at least a minimum value of £15,000. However, in terms of insurance, there is no standard definition for a classic vehicle- some insurance companies can rate fifteen years old motors as classic cars while others can rate a ten year old car as a classic vehicle.
It’s always ideal to check your insurer’s definition of a classic car before you obtain a quote so your guaranteed the right coverage.
How much is a classic car insurance?
There are lots of classic motor insurance organisations that specifically cater for the classic motor insurance niche market. On the other-hand, there are many other mainstream insurers that provide classic car insurance policies. And premiums can vary from one insurer to the next- that’s why it’s good to always shop around to find the most competitive deals on offer.
One major benefit of having a classic insurance policy is that it is way cheaper than cover for newer cars because classic vehicles are better maintained and used lesser on the roads, resulting in fewer accidents and claims.
How does classic car insurance cover work?
The comprehensive cover for a classic vehicle is quiet similar to that of a normal car. However, there are one or two basic contrasting factors between the two.
Classic vehicles are not easily valued in terms of price, consequently, should your policy pay out the market value in the event of a write off, there is a possibility that it might not reflect it’s actual value. It is highly recommended that the true value of the classic car should be ascertained with the insurer before you take out the policy. You could ‘fork out’ a high premium, but the cover will then pay out the agreed value of the vehicle should it be written off.
Some insurance companies may request evidence of the car’s true value, this might mean hiring an independent valuation expert- this means there could be an additional charge for such service. It’s ideal to consistently update the value of the vehicle each year because many vintage cars appreciate in value every year, unlike conventional vehicles that depreciates each year as they get older. You could be left with an insurance short-fall if you fail to update the value of your vehicle.
Checking the details of the policy for replacement parts are also very essential because valuable cars must always be fitted with authentic parts in order to maintain it’s true value. Do ensure that the insurance policy adequately covers it.
Another major factor you should consider is that classic cars are not driven as frequently as newer cars- so some insurers will set a maximum mileage, sometimes 6,000 miles per year. It’s good to always enquire about the repercussion of going well over this limit. Is there a way this mileage can be changed or would a breach instantly render the policy void?
Furthermore, another major differences between classic and conventional motor insurance is that drivers do not build up no-claims bonus on classic car insurance policies. As such, it’s always vital to shop around for cheaper quotes, most importantly during renewal periods.
What about special occasions?
Vintage rallies and shows are usually covered by classic car insurance- but if the events are held abroad, then you will need to pay some additional premium.
Hiring out your classic or vintage car for wedding occasions will require you to extend the cover because majority of private motor policies exclude the use of cars for ‘hire and reward’.
How can I save money on my classic car insurance policy?
You can endeavour to drive fewer miles than agreed in your policy, so that you’ll be able to exchange a lower limit for a lower premium with your insurer.
Join a recognised classic car club so you’ll be able to earn up to 15% discount on on your premium.
Some insurance companies will only cover with third party fire and theft or third party only cover rather than comprehensive policy only. Before settling for this, you must weigh your options against potential pitfalls of limited coverage and always recall that the cheapest classic car insurance policy might not always be the best policy. However, there might be some occasions when your vehicle would be taken off the road for repairs or restoration purposes- an ideal policy will cover your vehicle against theft, fire or damage culminating from attempted theft as long as it’s kept in a garage- while cheaper than the comprehensive policy. Whilst at this, You should also remember to declare the car off the road to comply with insurance rules.
Installing security components on your classic car is vital- as they are susceptible to vandals and car thieves. You will get cheaper premium if you fit an approved security device in your vehicle as well as locking it up in the garage every night.
Finally, you can also save money on your premium by using our quote comparison service from Quotezone, where you’ll be able to compare over 100 quotes in minutes- Click here to compare quotes now!
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