Classic car owners lavish a lot of love and attention on their vehicles. You need to ensure that you have the right insurance for your classic car. A classic car insurance policy is usually cheaper than cover for a modern vehicle. However, it is advisable to purchase the appropriate cover for your beloved possession.
A new insurance law stipulates that you have to insure your car all year round. If you are not driving your classic whatsoever, say over the winter period, you can apply for a Statutory off Road Notification.
The taxman defines a classic car as one which is more than 20 years old and has a minimum value of £15,000. There is no standard definition for the purposes of insurance; certain insurers consider ten year old cars as classic. Whereas, others stipulate that the car has to be at least 15 years old. Check the age definition prior to getting a quote to ensure you obtain appropriate cover.
There are several classic car insurance providers that provide tailored services for the classic vehicle market. Most of the well known insurers provide classic car insurance policies. However, premiums differ from insurer to insurer. Therefore, it is worthwhile shopping around for the most competitive deal.
What is reassuring is that classic car insurance quotes are usually cheaper than cover for a modern car as a classic car is usually better maintained and driven less, with fewer resultant claims.
A comprehensive policy for a classic car is more or less the same as that for a modern vehicle. However, there are a couple of key differences.
Should your policy pay you the ‘market value’ of a car, it may not reflect its real worth. Hence, it is best to agree its value with the insurance provider prior to getting the cover. You may need to pay a higher premium. However, the policy then pays out the agreed value should your car be written off.
The insurer can request evidence of the car’s agreed value, which may include an expert’s independent valuation, which you are highly likely to be charged for. It may be sensible to update the agreed value of the car annually as the majority of vintage models, dissimilar to modern cars, increase in value with age. You could incur a shortfall on a pay out if you do not update the agreed value of the car.
Ensure that your insurance covers replacement parts for your classic car.
The annual mileage limit set by insurers for classic cars is usually 7,500 miles per annum. You will need to check what happens should you breach that limit in a year. Are you able to alter the policy or does the breach invalidate your policy?
Another major difference between classic and standard car cover is that you cannot build up a no-claims discount on classic car insurance cover. Therefore, it makes great sense to shop around.
Classic car insurance usually covers events like vintage car rallies and shows. However, you are likely to pay more if your event is overseas.
Should you hire out your classic car for weddings, you are more than likely to have to extend the cover as the most of private car policies exclude use of the car for “hire and reward”.