A Guide To Classic Car Insurance – How To Find The Best Policy
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).
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. 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.