Classic car insurance

Classic car insurance, also known as vintage car insurance or collector car insurance, is a specialist policy for older cars. It’s like ordinary vehicle insurance, but with a few key differences.

For one, classic cars tend to be driven less frequently and only for leisure. Being collectors’ items, they’re also often very well-maintained.

For that reason, insuring a classic car could be cheaper than insuring a similar-sized modern vehicle.

What makes a car ‘classic’ varies between different insurance providers. But, when it comes to taxing a vehicle, HMRC has a clear definition – a classic car is over 15 years old and has a market value of £15,000 or more.

To qualify for road tax exemption, the vehicle needs to be at least 40 years old. That’s what HMRC defines as a 'historic’ vehicle.

For insurance purposes, definitions might differ. For example, insurance providers might consider things such as:

• Your car’s make and model

• How desirable your vehicle is

• How you use your car

• The typical mileage of the vehicle.

As there are no set rules, it’s worth checking the details and definitions before taking out a classic car insurance policy.

When you compare classic car insurance, the price you’re quoted will depend on several factors, including:

• The make, model and agreed value of your car

• The level of classic car cover you want

• If you want to add any optional extras to your policy

• How you use your classic car, and your estimated annual mileage

• Your postcode

• Where you store your classic motor when it’s not being driven

• Your age

• Your driving and claims history.

This might surprise you, but classic car insurance is often cheaper than regular car insurance.

That’s because:

• Vintage vehicles usually spend less time on the road

• Classic car owners tend to keep their cars in pristine condition.

• Classic cars might also have lower power outputs, which could reduce their chances of being involved in an accident.

However, the cheapest classic car insurance may come with certain rules. For example, sticking to a limited mileage. And if you go over that cap without telling your insurance provider, you risk driving underinsured.

It’s important to be honest with your provider about how you plan on using your classic car. And remember to contact them if things change, so you don’t risk invalidating your policy.