As a classic car owner, you understand the unique nature of your vehicle and how modern insurance policies just don’t cut the mustard when it comes to adequate coverage.
In this article we explore the definition of a classic car, why you need specialist insurance and the types of coverage available. We’ll also give you tips for reducing the price of your classic car insurance premiums.
What makes a car ‘classic’?
For most UK insurers the definition ‘classic’ applies to a car if it is 20 to 40 years old. However, as the RAC clarifies ‘There’s more to earning classic status than age – cars don’t just become one as soon as they hit 40’.
Although cars are generally defined by age, other attributes come into effect when applying a classic car definition for insurance purposes. These include rarity, value and historical or cultural significance. Elements such as unique design, historical relevance, or limited production runs are also factors that impact the value of a car.
Unlike modern cars, classic cars are typically well-maintained, rarely driven, and appreciate (rather than depreciate) in value over time. Many classic cars are defined as collectables under their insurance policies.
Why is insurance for classic cars different?
The unique needs of classic car owners set them apart from standard vehicle owners, which is why classic car insurance is tailored differently to regular car insurance.
Classic cars are driven less frequently, used for special occasions or events and require specialised maintenance and restoration due to their age, which can be costly. Typical classic car insurance includes agreed-value coverage. This means that the insurer and owner agree on the car’s value upfront so that the insurance policy provides adequate coverage when necessary.
Bateman Group’s classic car insurance is a tailored package offering comprehensive coverage for every risk. It provides protection against fire, theft, and key loss, along with features like agreed-value coverage for your car and protection for cherished number plates.
We also provide bespoke high-value classic car insurance options, ensuring full coverage at competitive rates for true peace of mind.
Types of classic car insurance coverage
There are several types of classic car insurance coverage, these include:
- Agreed Value Cover: Predetermine the car’s value with the policyholder and insurance company.
- Comprehensive Insurance: Covers damage from fire, theft, and other non-collision accidents.
- Third-party, theft, and fire: Protects against damages caused to third parties, including fire and theft.
- European Breakdown Cover: Cover when touring Europe, often limited to 90 days.
- Laid-up Insurance: Covers the car whilst it’s off the road for restoration or stored in a garage.
- Limited Mileage Policy: Reduced premium for cars that drive fewer miles annually.
Although it’s similar to standard car insurance, classic car insurance can be more affordable. This is because insurers assume that classic cars are likely to be driven less frequently and more carefully, as well as being better maintained. For more details on how Bateman Group can tailor your classic car insurance coverage see here.
Tips for reducing the cost of classic car insurance
If you’re looking for ways to reduce the cost of your classic car insurance here are our top tips.
- Limited Mileage Policies: If you’re not driving your car frequently, opt for a limited mileage policy to lower your costs.
- Improve Security: The safer the car, the lower the premium. Keep your classic car secure in a locked garage or other safe location.
- Car Clubs: Classic car club memberships sometimes offer discounts with certain insurers.
- Security features: Retro-fitting your car with alarms or immobilisers can help to reduce your premium price.
For more information on insuring your classic car please get in touch with our team today.
