Classic Motor and Classic Car Insurance
If you have an older car, you may qualify for classic car insurance which can be much cheaper than a standard car insurance policy. It could be argued that this is because people driving a “classic car” are likely to be older and safer drivers, probably garage their classic car and may only use it as a second car and therefore limit mileage.
What is classic car insurance?
Classic Car insurance is available to people driving cars over a certain age (you may possibly have to agree to limited mileage too)
Classic cars are commonly perceived as the transport of eccentrics and TV detectives such as Inspector Morse. Most people consider classic cars to be glamorous, expensive, and high maintenance status symbols bit in reality many classic cars do not fit this stereotype. The term “classic car” is actually hard to define. Who is to say that a cherished 15 year old Ford Escort is less of a ‘Classic Car’ than a Mark II Jaguar?
Diamond car insurance
Quantum Car Insurance
Direct Line car insurance
AA car insurance
Churchill car insurance
Norwich Union car insurance
Privilege car insurance
Elephant car insurance
There are commonly three terms used to describe the classic cars of yesteryear and a classic car insurance policy can embrace all three categories. These broad categories are:
Veteran Cars – manufactured before 1903
Vintage Cars – manufactured between 1903 and 1933
Classics Cars – cars that are at least fifteen years old
Different car insurance companies may use slightly different parameters to define these categories, but the details above can be used as a guide.
The confusion that can surround the definition of a classic car and what makes a car “classic” can make classification difficult when it comes to getting the right classic car insurance policy. This is because a “classic car’s” meaning can vary depending on the insurer as mentioned above. In fact, the larger insurance companies may not even offer specific classic car insurance schemes, but instead they cover classic cars with the same car insurance product and level of insurance as those who drive a typical car seen on the street every day.
Tips for obtaining classic car insurance
While It is widely understood that classic car insurance is cheaper than a modern car policy, it is important to be vigilant and well informed before obtaining classic car insurance quotes.
The condition and scarcity of a classic car can vary greatly, and an owner’s perception as to the value of their classic car can often be at odds with their insurer’s valuation in the event of a claim. Therefore it is vital that you take out a guaranteed agreed valuation when insuring your classic car.
A specialist car insurer that provides classic car insurance are more likely to provide specialist assistance and provide a better rate and classic car insurance quote.
A guaranteed agreed valuation is the value guaranteed by the insurer should the car be written off or stolen. Make sure you check that your valuation is ‘guaranteed’, as insurers have refused to pay out the full amount of a claim, despite the owner believing that they were fully covered because they do not have a guaranteed agreed valuation.
Car Insurers will usually make a small charge for adding an agreed valuation to a classic car insurance policy, but it is highly recommended as if you omit it from your car insurance policy and make a claim the payment offered by the car insurance company can be hundreds, or even thousands, less than you expected.
How can I get cheap classic car insurance?
There are various things that you can do to reduce your insurance premium. You can elect to increase your voluntary excess. Most motor insurance premiums have a compulsory excess, but if you agree to a voluntary excess as well it usually reduces your premium. If you only travel 5,000 miles per year, tell your insurance company. Informing the insurer that you travel limited miles within a year usually makes your motor insurance premium cheaper. Don’t include your 19 year old brother who has just passed his test. It might seem like the brotherly thing to do, but having a young, inexperienced driver on your insurance is a sure way to increase the cost. Garage your car overnight. A car locked away in a garage overnight is less likely to be stolen or damaged. This should knock a few pounds off your premium.
But above all, be a safe driver. A full “no claims” discount can knock well over 50% off your premium.
What is a “no claims” discount?
As a reward for not making any claims against your motor insurance, insurance companies will give you a “no claims” discount. For example, if you have not made an insurance claim for 12 months, your insurance premium may be reduced by 15%. The percentage discount will continue to rise the longer you go without a claim up to a certain limit (usually 5 years). You will then have what is known as a maximum no claims discount.
If you do make a claim once you have built up a “no claims” discount, your discount will usually be reduced (unless you have a protected no claims discount).
The exact way that this works will depend on your particular policy, but as an example, if you have 5 years no claims discount and you then make a claim, your no claims discount may be reduced to 3 years