Newbies Guide to Classic Car Insurance

June 1, 2017 · Posted in General Articles on Car Insurance 

Those who have just recently purchased their classic cars would probably think that they have made one of the worst mistakes in their lives. Classic cars have so many years for things to break and corrode that you might think you are just buying somebody else’s worries. There are indeed many joys but unless you have the right classic car insurance product to cover your “pride & joy”, you are leaving things to chance. There-in lays the problem. By not you would have realized that most normal car insurance companies will not insure classic cars. Below we will look into why this is the case and also provide important advice on how to solve this problem.

The first thing to understand with classical cars is how insurers value cars. The model that modern insurance companies use to value cars is based on the prevailing market value of the car and also its economic value to the user. This is almost the complete opposite to how owners of classic cars value their cars. Classic car owners value their car based on emotive attachment and have almost nothing to do with economics and usability in mind. It is very much an emotional choice rather than a practical one. The way a classic car is valued is very much subject to how the owner feels about the car. This is one of the main reasons why normal car insurance companies normally turn down insurance for cars that are considered classics or vintage

Prospective classic car insurance users should also understand the concept of agreed value and market value. Most classic car insurance products are based on agreed value while most normal car insurance products are based on market value. This is the defining factor that addresses the differences in normal valuation models as described earlier. With agreed value, you come up with the number that you think is right to value your ride. With market value, the insurance company will come up with the figure and will check the market again if you make a claim. Straight away you should recognize that market value policies are rather dangerous for classic car owners. It is up to the insurance company to determine how much your car is worth. It is almost the job description of the insurance adjuster to value your claim down to an unacceptable value.

Newbies should also understand that car insurance for classic cars is quite different to normal cars. Classic cars are generally memorabilia items and are kept for emotive reasons. The insurance model for classic cars is very similar to insurance models for paintings, one-off pieces of art and anything that is collectable. Applying normal car insurance to classic cars is a mismatch and should not be done. A classic car insurance policy is very much a custom policy that is specifically made to match the needs of the car and the user. In most instances, there are no two classic car insurance policies that are alike as most users have different ideas on how to use their classic cars. The sheer customizability of classic car insurance is another reason that normal car insurance companies don’t take up classic cars. Most of the time it is just too much hassle to customize all policies for such a small market.

As mentioned earlier, classic car insurance is very much a customized car insurance plan. It is quite different to normal car insurance plans where you can just buy a plan “off-the-shelf” such as a comprehensive coverage. With classic cars, each owner uses their car for different purposes. Some are weekend warriors that only use their cars at the end of the week. Some use their cars everyday as daily drivers while the opposite is also true where some just cart their pristine classic cars to different shows around the world. Some even love to get their hands dirty and can’t help but to pull apart and reassemble their cars. With each different case, the requirements for their classic car insurance are very different. Each will need different coverage options, some heavy on road coverage while some heavy on storage coverage. The more you pay attention to your coverage needs, the more precise and cheaper your insurance will be. Cheaper because you can trim off any coverage items that you think may not be so valuable to you.

One the same note of lowering your classic car insurance costs, most new owners normally miss one of the most vast collection of good advice and tips and tricks about both your car and your insurance. Most don’t think of ever contacting other classic car owners that may have been doing this for many years. These people would probably have had all the classic car insurance problems before and have very valuable tips and tricks you can use to get your car insurance. You can find these owners through clubs or even on vintage rallies and meets. They would generally be more than happy to relate their ownership experience with you and share any useful bits of information.

Another option to consider is to look at restricting the miles that you travel to decrease the cost of your car insurance premium. This is particularly useful for classic cars as most owners don’t put on massive amounts of miles per year anyway. The difference between a restricted travel car insurance and a free travel car insurance could be quite high especially for a classic car.

As classic cars are insured in a similar manner to antiques, rare paintings and memorabilia items. With these items the storage security is very important and is a large factor in determining the cost of the premiums. Most insurance companies that will insure classic cars have their own list of vetted and approved security firms. These firms are recommended by the insurance company to supply security for your classic car and the place where you store your classic car. If you have a satisfactory installation then you can inform your insurer of it and receive a cut in your classic car insurance rates.

Above we have listed some points for newbies to consider when looking for classic car insurance. At first it will be difficult as you think that you are insuring a normal car when in fact you aren’t. As you read more and gain more knowledge you will soon realize that it isn’t as hard as it seems. We again have to state that other owners of cars like yours have a wealth on information and should be sought out. They can not only help you with you car insurance needs but also help you with other aspects of owning a classic car. No one ever said that it was easy to own a classic car. It will take your time and money to enjoy. One of the important things to have is a proper classic car insurance so you can use your classic car with the confidence of coverage.


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