Classic Car Insurance

What is classic car insurance?

Classic car insurance is a specialist policy that provides financial protection for owners of classic cars, offering levels of cover not ordinarily needed for standard vehicles. Classic cars often carry substantial sentimental and monetary value, and many are held as an investment, so the policy is built around protecting that value rather than simply replacing a car at market price.

It is not the same as regular car insurance, although working out the difference is not always straightforward. The main differences are in how the car is valued, how repairs are handled and how the car is used, which are covered in the sections below.

Is classic car insurance cheaper than regular car insurance?

Generally speaking, classic car insurance tends to be cheaper than regular car insurance. The primary reason is that most insurance providers assume you drive a classic car less frequently than your everyday car, so it is exposed to fewer risks on the road.

Cheaper does not mean less comprehensive. A classic policy can be every bit as thorough as a standard one, and in some areas such as valuation and parts it should go further. When you compare quotes, look at what each policy actually covers for you, your passengers and the car, not just the premium.

What is agreed value cover and why does it matter for a classic car?

Agreed value cover means the insurer agrees to pay a set valuation for your car if it is written off or stolen, rather than simply paying its market value at the time. For a classic car this is one of the most important things to get right, because market value can be a poor measure of what the car is actually worth.

Assessing the value of your car is one of the trickiest parts of insuring a classic, and the valuation must be correct to find the most comprehensive cover at the best rate. Remember too that classic cars often increase in value over the years, so check that the policy agrees to review the agreed value accordingly rather than leaving it fixed.

Does classic car insurance cover authentic parts?

It should, but you need to check the parts cover in each policy. You want to be sure the insurer agrees to source correct and authentic parts for your car should you need them after a claim.

This matters because parts that are not in line with your classic car's model can reduce its value. A repair carried out with the wrong parts could leave you with a car worth less than before the claim, so read the parts wording carefully before you buy.

Can I use my classic car for weddings, shows or other business use?

Only if your policy covers that use. If you use your classic car not just for pleasure but also for business, such as wedding hire or motor shows, look for packages that specifically cover this when comparing classic car insurance.

A policy written for pleasure use alone may not respond if the car is being used commercially, so be clear about how you intend to use the car when you complete the quote form.

Which type of cover should I choose for a classic car?

For a high-value car, comprehensive cover is usually the only sensible option. Third party policies rarely offer meaningful savings on expensive cars and leave you exposed to large repair or replacement costs.

Beyond the basic level, consider:

• Agreed value cover, which guarantees a set payout rather than market value
• Parts cover that commits the insurer to correct and authentic parts
• Business use if the car is used for wedding hire or shows

If your classic is also a high-performance or prestige model, our guides to sports and prestige vehicle insurance and car insurance group 50 cover the extra factors insurers weigh up for those cars.

How do I compare classic car insurance quotes?

Complete the short form with details about you, your vehicle and your driving history. Specialist insurance providers will then compete for your business and call you back with a quote, and you can receive quotes from up to 5 specialist providers.

Once you have compared them, you can purchase cover online or by phone from your preferred provider. Provide accurate information throughout, as misrepresenting details to lower your premium can invalidate your policy when you need it most. Review not just the price but also the policy terms, excess levels and what is included as standard versus optional, because the cheapest quote is not always the best value if it excludes essential cover.