Considerations When Insuring Your Classic Car
If you are considering buying your dream classic car, you'll need to take out specialist insurance to cover it. Here's some useful information to bear in mind when seeking insurance cover for your classic car.
What makes a classic?
Not all insurers use the same criteria to determine what makes a classic car, so it's advisable to seek the advice of an insurance broker in your area before making a decision on which insurer to use. This is important as classic car insurance is often cheaper than cover for more modern vehicles. Generally speaking, a classic car is deemed to be one that is over 20 years old.
No claims
When choosing insurance for your classic car, do bear in mind that comprehensive cover terms are not the same as for a newer vehicle. For a start, classic car insurance does not usually attract a no-claims bonus.
Independent valuation
In order to ensure that your car is covered for its true value, it is well worth obtaining a specialist valuation report from an independent expert. The vehicle's true value can then be agreed with the insurer at policy inception. Always have the valuation updated annually, as classic models actually appreciate in value as they age, and your insurance policy should reflect this.
Replacement parts
Your insurance policy should cover any replacement parts that may be required in the event of an accident. If parts for your car are particularly difficult to obtain, or are likely to be very expensive, always check that you are fully covered for their replacement.
Mileage limits
Insurers do not expect classic cars to clock up as much mileage as the family run about and will usually cap your annual mileage at less than 10,000 kilometres. If you are likely to do more than this, tell your insurer and be prepared to pay a slightly higher premium. On the other hand, if you do less mileage than the insurance company's maximum, you may be able to negotiate a lower premium.
Showing off
If you enjoy showing your car at rallies and other such events, classic car insurance will generally cover this. However, if you plan to hire the vehicle out for weddings and the like, you will require extended cover.
Owner's clubs
Classic or vintage cars generally have recognised societies or clubs. If you decide to join one of these clubs, not only will you be able to get together with like-minded enthusiasts but you may also be able to qualify for a healthy discount on your insurance premium if you take out cover with an insurer who is affiliated to the club.
Off the road cover
In the event of your vehicle being temporarily side-lined, you can take out cover for fire, theft or damage provided the car is garaged.
In conclusion
If you have a classic car, bear in mind the considerations mentioned above when seeking insurance, and always discuss your requirements with an insurance broker in your area to make sure you get the right cover.