Auto Insurance

Have you recently bought a classic car?

You may be entitled to cover it under what is known as a classic car insurance policy.

In the past there were many more restrictions on cover under this type of policy and specialist motor insurance brokers and insurance companies were very particular about the type, age make and models of the cars they wished to cover on their books.

The first thing to establish is whether your car is eligible for cover under a classic policy. One way you could do this is ask the previous owner whether it was covered under a classic car insurance policy and with which insurance company.

Different car insurance companies have different definitions of the age and type of vehicles that can be covered under this type of cover.

You should check that both the eligibility of the age of the car in question and also whether there are policy restrictions for your individual driving circumstances, such as your age that would prevent you from applying for cover.

The large mainstream insurers and price comparison sites will offer cover for older and classic cars but will charge an additional premium because of its age. They will also load the premium if replacement parts for the vehicle type are known to be expensive.

It is now possible to obtain both cheap quotes and  classic car covers online from many providers including the majority of those famous high street brands, who have realised that nearly fifty percent of the cars on the road now fall within the strict underwriting parameters for classic car policies.

When applying for a classic quote you should be aware of the varying limits of cover and restrictions that may be put on driving the vehicle. For example many of these policies will only allow you very limited road mileage each year, sometimes as little as 2000 miles each year. This is fine if you have a valuable rare car that is garaged throughout the year and only taken out for the odd cruise or rally.

Unfortunately, restrictive policy conditions often only come to light after an accident and a claim is made, rejected by the insurer and leaves the policyholder feeling mis-sold and abandoned.

Many policies are designed to charge by the lifestyle of the insured and as with all car insurance there is a tendency for cover to be cheaper for older persons and women drivers.

Many companies will not issue classic motor insurance to persons under the age of twenty five, although this is changing as well, and there are some very good providers out there who will cover drivers as young as twenty three.

More importantly you will only be offered the current market value replacement if the car is covered under a mainstream policy and is deemed to be a write-off when you claim.

With a standard car insurance policy on a replacement like for like basis, the value of the car is often set by the market value at the time of a claim, typically taken from one of the car price magazines such as the UK’s Glasses Guide.

The amount you will be probably receive for a write-off will be at the current market value of your car which is an annual depreciating amount. Inevitably, if you own a classic car and insure it under a standard policy contract, this leads to under valuation and under insurance of the true value of the car.

An agreed valuation amount is the amount that the insurance company will pay out in the event of a claim that results in a write off. This is a major benefit of insuring classics under specialist policies because it ensures that you are not just properly covered but will also receive the specialist repair services that your classic will require should you claim.

It should be noted that even agreed valuation polices can change and you should ensure that the value is guaranteed for a certain period of time to avoid fluctuations in market values.

All classic car policies have a limited mileage clause which only covers the vehicle for an agreed amount of miles per year. Depending upon which specialist car insurance company you use, there will be a limit to how far you can drive your classic.

These policies reflect the fact that many drivers now use modern day classic cars as their main form of transport.

As with all  car insurance,  what may initially appear cheap at policy inception could cause some unpleasant surprises when it comes to making a claim. There are many classic insurance providers available online and many classic schemes that are targeted at particular classic cars owners.

Shop around for Classic Car Insurance. Compare prices and insurance covers from both major high street brands and the smaller insurance specialists to ensure you not only get a good deal, but get the adequate levels of cover you require for your classic car, as well.