Classic Car Insurance Explained

There are few better possessions to own than a classic car (or two) and these are the pride and joy of many motorists. Classic cars can be incredibly beautiful and a joy to own, but it is important for anyone that is considering investing in a classic car to have a firm understanding of insurance as this will differ to your typical car insurance policy and you will want to protect your investment. Read on to find out all that you need to know.

Classic Car Insurance Defined

Classic car insurance is often more affordable than regular car insurance and can provide cover in case anything goes wrong. So, what is defined by insurance companies as a classic car? Typically, this is a vehicle that is:

  • At least 15 years old
  • Less than 5,000 miles covered annually
  • Value upwards of £15,000
  • Not used as a primary car
  • Kept in mint condition

Types of Cover

As with regular car insurance, there are three levels of cover to choose from – third-party, third-party fire and theft and comprehensive. On top of this, classic car insurance can include:

Agreed valuation: Insurer pays out a pre-agreed sum in the event of a write-off

Salvage retention: Provides the rights to buy back remains in the event of a write-off

Laid up cover: Cover for classics not driven on the road but still require damage, fire and theft cover

What Impacts the Cost of Cover?

Again, as with regular car insurance there are a few factors that influence the cost of your policy. Typical factors like the age of the vehicle, the value, age of the driver and driving record are all factors that are considered. Additionally, it is important to be aware that modifications will push up your premium and these are common with these cars (it should still be cheaper than regular car insurance).

Ways to Bring the Cost Down

There are also a few ways that you can bring the cost of classic car insurance down. These include having a different car as your main vehicle so that it is not used heavily and similarly keeping your annual mileage under 5,000. On top of this, insurance tends to be cheaper for those that are over 25 and if you are able to store the vehicle somewhere safe, such as a private garage, on a driveway or in a lockup.

Hopefully, this post will cover everything that you need to know about classic car insurance. Owning a classic car can be a fantastic experience and it will be a possession that you cherish, which means that it is vital that you have the right protection in place to protect your investment and for your own peace of mind.

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