Cheap Classic Car Insurance

A Quick Guide To Insuring Your Classic Car

The insurance coverage for a classic or vintage vehicle is not the same as a newer car. For this reason, it is important to choose the right insurance policy that best suits your needs.

Terms used to refer to a vintage car may vary. Many insurers consider an automobile over 25 years a classic and they divide them into three distinct categories.

For insurers, age is not the only criterion for classifying a vehicle as a vintage or classic car. Its rarity can be a sufficient criterion.

Thus, it is common to see insurers offer specific cover for limited edition vehicles that are 20 years old. The automobiles typically come with a higher value than some luxury models.

A collector’s car may not be required to undergo periodic inspection every few years (MOT test).

Vehicle Use

As its name suggests, a classic car is intended for private and limited use when compared to a more recent model. These types of automobiles are typically used for recreational purposes.

However, regular use on trips, such as going to work and taking children to school may not be strictly forbidden. The applicable limitations depend on the clauses of the classic car insurance contract.

On the other hand, policyholders are not allowed to use a collector’s car for profit, especially for the transport of goods and persons for a fee.

What Factors Influence the Cost Of The Classic Car Insurance Policy?

It is advisable to discuss with the insurer the usage of your vintage car, because the following factors may also influence the cost of your insurance policy:

  • The market value of the car and its valuation over time
  • Modifications on the vehicle
  • Maintenance cover
  • The range of permitted uses
  • Use outside a given geographical area
  • Use by experienced or young drivers

Many insurance companies have lowered the average age of vintage vehicles to around 20 years. In addition, they do not impose minimum mileage and consider the criterion of the scarcity of the model

Nevertheless, the companies specialized in classic car insurance impose various conditions with respect to their products.

The conditions are based on the possession of another more recent car and the background of the designated driver in relation to the driving license and experience.

It is common for insurance providers to require the designated young drivers to be over 21 years of age and to hold a license valid for at least two years. The driver must not be a learner and/or the subject of a dispute with insurers.

Due to their value, vintage cars are supposed to take the road only occasionally. As a result, the insurance contract may restrict usage to a few trips a year.

The modern vehicle is then intended to meet the needs of daily travel.

Benefits And Coverage

The main advantage of a classic automobile insurance lies in the competitiveness of premiums due to the low potential risks. The service providers believe that the owners are attentive to the driving of their vehicles, especially since they are not used daily.

However, it is important to point out that some insurers offer specific contracts for daily use, particularly when it comes to driving to work without the obligation to own a modern car.

Some insurance providers do not impose the need to conduct regular tests. It is possible to insure your vintage car using an all-risk policy, third party or through specific coverage. Motor trade insurance for vintage cars may include extras like 0-kilometre assistance, towing to the nearest garage, vehicle repair even at above costs and cover the purchase of spare parts.

They also cover the cost of accidents and pay legal costs in the event of a lawsuit. Benefits can include a no claims bonus.

Choosing The Ideal Policy

When choosing your car insurance, the price is often the first criterion that you consider. However, the calculation of the price involves many parameters that are not always obvious.

The price of your insurance depends on certain elements relating to your vintage car. Each insurer offers a contract based on risks inherent to the policyholder’s profile.

In the eyes of insurers, the risks are greater if the policyholder is a young driver. This is often linked to the lack of experience or a certain level of carelessness. As such, young or new drivers, regardless of their age can be charged higher premiums than experienced or older drivers.

The vehicle also plays a role in the calculation based on the principle of risk. For insurers, the riskiest cars are the most powerful and the newest because they are frequently involved in claims.

What About Older Vehicles?

Conversely, older and less powerful automobiles represent a lower risk and are insured at a reasonable price. On another level, the insurers may consider whether your car has undergone any change or modification.

The use of the vehicle is a key factor. As noted above, some contracts are designed for drivers who cover short distances. The insurer will charge more for regular trips to work or other engagements.

Your insurance premium also depends on the bonus or penalty. This variable changes from one year to another depending on the accidents in which you are involved.

In other words, if during the year you did not cause any accident, your insurance company will give you an increase on your bonus, thus reducing the amount of your car insurance.

Otherwise, if you are responsible for an accident, your penalty will increase, which in turn raises the premium.

Overall, insurers love vintage car drivers for several reasons: they are passionate people who do not take risks with their vehicles and strive to drive safely by respecting the rules of the road.

Why Shop Around For Vintage Car Insurance?

To choose the right insurance product that suits your specific needs and take advantage of the best price, it is important to shop around for insurance. By requesting a quote from multiple providers, you can easily compare the available plans from various insurers.

To make the best choice, also consider using online insurance comparison sites, which present a wide variety of offers in one place.

Individual Insurance or Fleet Insurance: Which is Cheaper?

If you are a business owner with a lot of vehicles in your fleet, one of the important aspects of ownership is ensuring that each of your vehicles is adequately insured against damage and theft, much like with your regular car insurance policy.

But how best to insure your fleet? Insuring each vehicle individually is not only going to be expensive but also generate a lot of additional paperwork, which could not only lead to clutter but also to confusion when it comes to sorting out an insurance claim against one of your vehicles.

What Is Fleet Insurance?

Fleet insurance essentially allows you to insure all of your vehicles under a single policy, so whether your fleet involves cars, vans, trucks or a mixture of all three, putting all of your vehicles on one policy could work out cheaper for you in the long run.

How Does Fleet Insurance Work?

Fleet insurance insures multiple vehicles at one time, usually over five, although some brokers may allow you to insure three or fewer vehicles under them, this can vary so be sure to ask in order to be sure.

By taking the time to put all your vehicles onto one collective policy, not only can you save you on administrative tasks, but you may also save yourself some money in the process, especially if your drivers have good driving records.

What Level Of Cover Can I Get?

Fleet insurance can involve different levels of cover, including:

  • Third Party Only
  • Third Party Fire and Theft
  • Fully Comprehensive

Much like with a regular car insurance policy, the higher the level of cover the higher the price, so bear this in mind when choosing a policy. Fleet insurance will allow you the opportunity to place the same level of cover onto all of your vehicles, ensuring that all are covered against the same dangers.

What About No Claims Discount?

No Claims Bonus (NCB) can be built upon your fleet insurance policy, and each driver will have an individual NCB which will count towards the policy. So provided of course your drivers have good, clean records you could find yourself saving on your fleet insurance.

By accumulating a combined NCB for all your vehicles, and by keeping track of your drivers driving habits individually you can help to lower your premiums in future.

Any Additional Extras?

Depending on the nature of your business, there are a few additional extras that you may wish to add to your policy in order to add some extra protection for your fleet, including:

  • Goods In Transit cover – helps to cover your cargo against loss or damage en route to the customer site.
  • Breakdown cover – helps to get you back on the road in the event of your vehicle breaking down, either by repairing it by the side of the road or by towing you to a nearby garage for repairs.
  • Courtesy vehicle – helps to get you back on the road quickly if one of your vehicles break down on the road by providing a like-for-like replacement to allow you to continue on your journey.
  • European cover – if your orders take you across the Channel and into Europe, you’ll want to make sure you are covered while over in the EU, helping to cover against breakdowns and accidents caused by third parties.
  • Personal belongings cover – helps to protect a drivers’ possessions in the cab of his truck against damage or theft.
  • Windscreen cover – helps to cover damage to windscreens as a result of dangerous chipping, impacting wildlife or as a result of an accident.
  • Equipment cover – helps to cover any equipment that is used during the delivery, including tarpaulin, strapping and security ties.

As well as extras which cover the equipment and goods, you’ll also need to ensure that your driver is also covered, and the following extras are essential to ensure safety for them and your business:

  • Public liability cover – helps to protect you against claims made by third parties for injuries caused by your vehicle or equipment.
  • Employers’ liability cover – helps to ensure that you are covered should one of your employees is injured on your premises (eg. One of your drivers sustaining an injury while loading their van because of a faulty piece of equipment).

Check with your broker as to what comes as standard on your policy, and which of these extras may need to be added to your policy in order to cover your vehicles.

What Documents Do I Need To Insure?

Insuring a fleet may seem like a lot of work to set up at first, you’ll have to find the documents for each of your vehicles and register each one on the policy, which could take a good amount of time depending on your fleet size.

However, when it comes to renewal time, this process can be shortened if your fleet has not changed, and a new premium can be worked out from this previous detail.

Be sure to let your insurer know if you add vehicles to your fleet, replace vehicles and drivers or make any modifications to any of your vehicles, as this could affect the price of your premium going forward.