Clasic car insurance information

For new owners of classic cars, the task of finding insurance for their "new" pride and joy can be a confusing one. Most drivers will have bought insurance for their regular car, and be aware of some of the options available to them. But classic car insurance introduces new terms that might not be familiar. What is "Agreed Value"? How is it agreed? What about "Laid-up cover? And what counts as a "Classic car"?

This FAQ should answer some of those questions, and help you to choose classic car insurance that best suits your requirements. After all, the best choice might save you 100’s!

What is a "Classic car"?

The definition of what is a classic car varies from company to company. For some, cars as young as 10 years old can be covered by a classic policy, although many have a higher limit.

What is Agreed Value?

Most classic insurers will offer "agreed value cover". This simply means that the value of the car is agreed between you and the insurance company.

How the "agreed value" is arrived at will vary from one insurance company to another. Most will require four or more photos of your car, so that it’s condition can and any modifications can be seen. Often the value agreed will be above the current market value. This may be surprising, but it’s often the case that it would cost more then the market value to restore another car to the same standard.

What is restoration cover?

Some classic insurance companies will offer specific cover for cars that are being restored. In some cases this will include an automatic increase of the agreed value, as restoration can be expected to increase the value of the vehicle.

What is laid up cover?

If you have a valuable classic car in storage, then it may be worthwhile getting laid up cover, which covers your vehicle while it is stored. You may need to shop around to find a suitable policy. Note that in the UK, laid up cover may require that the vehicle is laid up in a garage and declared SORN.

What about event & rally cover?

Most classic car insurance policies will cover visiting shows and events automatically, but if you intend to take part in regularity rallies or similar events, check your policy carefully. Some insurance companies will have limitiations on the number and type of event, or may increase you excess for these events. Note: Motorsport is quite seperate. If you wish to race in track events then you will need a specialist motorsport policy.

What is limited mileage cover?

Most Classic car policies reasonably assume that your classic is not you everday commuting car, and therefore place annual mileage limits on the policy. These may be anything from 2000 miles/year up to 7,500 miles/year, with the lower mileage limits reducing the price. Generally you will be asked for the odometer reading at the start of the policy.

Can I get a cherished / classic car club discount?

Many insurance companies will offer a discount if you are a member of a recognised classic car club. In some cases the saving could be more then the cost of club membership! So if you are not already a club member, find a suitable club and join up before getting a final quote.