This article provides general information about the insurance industry and does not describe Hagerty’s specific products or policy terms unless clearly noted.
Classic car insurance can be a bit of a minefield. With dozens of providers out there, it can be difficult to choose who’s right for you or even understand what it is you need. To help get you started, we’ve outlined some handy pointers on what to look for when insuring a classic car.
Choosing the right insurer
To pick the right company to provide insurance cover for your classic car, think carefully about what’s most important to you when it comes to protecting it. No two insurers are the same – they all provide different types and levels of cover, and the benefits they offer will almost always be different.
To help identify what it is you need from your insurer, ask yourself these questions:
- How often will I drive my car?
- Will I use my car for social, domestic, and pleasure, or will I also need my car for commuting and business use?
- What level of cover do I need?
- Where will I store it overnight?
- Will I drive my car abroad?
- Am I likely to require breakdown assistance?
- How much am I willing to pay in excess in the event of a claim?
Levels of car insurance coverage explained
When insuring a classic car, compare the coverage levels available to you. Typically, coverage levels are broken down into the following options:
Third party
This type of cover is the minimum cover legally required to drive in the UK. It only covers the other person’s vehicle if you are at fault. If you were to cause an accident, the damage to your own vehicle will not be covered.
Third party, fire and theft
This covers damage to other people’s vehicles and damage to your own vehicle, but only if it was caused by a fire or stolen.
Fully comprehensive
This is the highest level of cover available. This covers everything mentioned above, but also covers damage to your own vehicle, even if you’re at fault.
It’s important to really consider the cover options available to you and opt for the highest coverage if you can.
Features to consider
As a classic car owner, you’ll understand just how important it is to ensure that you’re covered if you need to make a claim. When weighing up your options, it’s helpful to check you’ll be covered for the following:
- Breakdown cover: Road trips in classics don’t always go to plan. Consider whether you will benefit from breakdown assistance on your policy.
- Driving abroad: If you want to take your classic abroad, you’ll need to opt for an insurer that covers you for this.
- Agreed value: Does the value of your classic fluctuate? If so, it might be worth considering agreed value. This is where you and your insurer agree on the value of your car before the policy starts. Use our Valuation Tool to check your vehicle’s value.
- Mileage limits: Consider how much you will drive your classic. If you’re likely to only do a few thousand miles, you might not need cover for 10,000 miles per year.
- Legal cover: There’s a few reasons why you might need legal cover. In the event of a non-fault claim, this could help you recover things like loss of earnings and personal injury costs without having to worry about legal expenses.
- Cover for events: Many classic owners like to take their cars to shows and events. If you’re one of them, it might be beneficial to find a policy that covers you for this.
It’s also important to think about your voluntary excess. This is the amount you will need to pay if you want to claim your insurance.
Classic car insurance compared to regular insurance
Classic car insurance policies are typically more tailored to classic vehicles rather than modern dailies. Many classics are driven leisurely, are often second cars and are stored and maintained differently to daily drivers. This changes the risk level associated with protecting the vehicle.
Another key feature will be the setting of an agreed value for your car. It’s very rare for new or used cars to keep their value. Instead, they depreciate from the moment you’ve handed over your money. Regular car insurers base their payouts on the market value of a car at the time of a claim, not what you paid for it. However, with a classic car insurance policy, you can set an agreed value for your vehicle, which can factor in not just what you paid for the car, but what you have spent on maintaining or restoring it.
When insuring a classic car, it helps to understand if your car qualifies? Learn what counts as a classic for car insurance.
Insure your classic with a specialist insurer
If you’re looking for cover for your pride and joy, why not consider Hagerty UK? Not only are we classic car insurance specialists, but we are enthusiasts at heart. Call us for a quote on 0333 323 1138.
