It doesn’t hurt sometimes to remind ourselves about some of the insurance cover we have so let’s just have a quick refresher of classic car insurance. After all, most owners devote a great deal of time to maintaining their classic car but do they pay the same attention to insuring it?
Make sure your loved vehicle has adequate classic car insurance
Prior to June 2011 many owners of classic cars just insured their vehicles during the summer period as that was the only time they took them out onto the road. However, in June 2011 the law changed with you having to declare the car off the road by completing a Statutory Off Road Notification otherwise you had to maintain your insurance.
Definition of classic car insurance?
According to Her Majesty’s Revenue and Customs if your car is worth more than £15,000 and is in excess of 20 years old it can be classed as a classic car. However, insurance companies do not adopt the same criteria with some insurers saying that as long as the car is 10 years old it can be classed as a classic car and others say 15 years. Therefore, it is worth asking this question when shopping around.
Cost of classic car insurance?
There are numerous providers of classic car insurance so it is worth shopping around contacting some of the main insurers, specialist classic car insurers or price comparison websites.
You usually find that it is cheaper to arrange cover on a classic car than your normal family saloon as insurers believe that classic car owners take more care of their vehicles both from a maintenance perspective and driving them thus making fewer claims. Also a classic car tends to be driven for fewer miles than a normal car so this factor is reflected in the premium.
If you are a member of a classic car club a number of insurers offer a discount on your premiums of up to 15%.
What cover is provided?
The fully comprehensive cover on a classic car is similar to that of a normal car with a few differences.
It is possible to arrange either third party or third party fire and theft classic car insurance but you must appreciate the limitations of those types of cover.
You can insure your classic car for the market value but this may not provide you with the cover you require to replace your vehicle should it have to be written off. The alternative is to arrange the amount of cover on an Agreed Value basis for which you would pay a higher premium but you will know the amount that will be paid out by the insurer.
You do not get a no claims bonus with classic car insurance.
Some of the parts on a classic car are extremely costly to replace so make sure that you are covered for replacement with genuine parts.
The number of miles that you are permitted to drive your classic car is lower than that of a standard vehicle so check that you are adequately covered. If you are likely to exceed the number of miles stated on the policy notify your insurer with a view to increasing the mileage for an additional premium.
If your vehicle is off the road for repairs you can take out Laid Up cover instead to provide cover in the event of damage, theft or fire whilst in a garage.
Cover for special occasions?
You are usually covered for things like shows or vintage rallies in the UK.
Hopefully the above has proved a useful refresher of classic car insurance.
