Have a Classic Car? Here’s How to Buy Insurance for It
To own a classic car is to own a piece of automotive history. Therefore, in many ways you’re not only a lucky individual with a nice ride, you’re actually the custodian of an artefact that bears greater value than any price tag could possibly hope to indicate.
Protecting a classic car entails more than understanding which wax to use as it also entails insuring it with a specific policy. This helps to protect and secure your investment in automotive history for many years to come.
What is a classic car in the UK?
The definition of a classic car often differs from country to country. For instance in Australia, a classic car is any car over 30 years old, in the US an ‘antique car’ is any car that’s seen over 45 years and in the UK it’s known to differ, though generally includes any car that’s over 20 years old.
How to insure a classic car and what to be aware of
There’s actually no need to insure your car as a classic if you don’t want to, though there are a number of benefits to doing so, starting with the reasonable cost of insuring a classic car.
In fact, so reasonable are classic car insurance policies for older drivers – even younger drivers will find classic car insurance policies to be quite reasonable – that many have found they can insure anything from a Porsche 911 to a VW Beetle for under £100 annually.
However, there are a few things to be aware of when insuring a classic car; starting with understanding that low premiums aren’t so much to do with a car’s age but more so how the owner uses it.
This is why there’s a very good chance the insurer will ask you if you own or have access to another vehicle, because if you do it’s unlikely your classic will be your ‘everyday car’ which therefore reduces risk.
Low premiums generally also entail making a commitment to keeping your mileage under 5000 miles per year and agreeing to certain rules, including notifying the insurer of any modifications you have planned – ‘pimping your ride’ could prove expensive – and being unable to take advantage of no claims discounts.
Agreed value policies
Of the many factors involved when insuring a classic car, the agreed value is one of the most important to take note of and it also frequently proves a source of contention between insurers and car owners.
The agreed value not only concerns the value of a replacement vehicle, but also the cost of repairs and parts which for some classics – due to their limited numbers and the difficulty sourcing replacement parts might entail – can prove problematic.
Therefore, when making arrangements to insure your classic car ensure that this aspect is adequately addressed, though you’ll find most insurers providing classic car insurance policies make available ‘agreed value insurance policies’ because so many classic car owners wisely insist upon them.
Avoid MOT and tax on pre-1960 vehicles
Something that many classic car owners are unaware of concerns the ‘Historic Vehicles MOT Exemption’ rules, which means that if your classic was manufactured before 1960 you’re exempt from MOT testing in addition to paying road tax – as of April 2014 the Government will extend the exemption a year to cover all cars before 1974 from 1973 as it has long been – though insurers often still insist on proof of classic cars’ roadworthiness.
Reducing your classic car insurance premiums
In addition to keeping your mileage low and having access to another car as an ‘everyday car’, there are a few ways to reduce classic car insurance premiums.
1. Join a classic car club
As a member of a recognized classic car club most insurers will offer a discount of 15 percent on your premiums
2. Earn advanced driving qualifications
Drivers with advanced driving qualifications generally enjoy a reduction in insurance premiums
3. Reduce the risk of theft
Storing your classic car securely and investing in a Thatcham approved security device can also reduce your premiums
As the custodian of a piece of automotive history you have an obligation, not only to yourself but to the world, to protect your classic car.
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Category: Insurance
