Most car enthusiasts have a classic car in mind that they dream of owning, like an original fifties Cadillac, a forties Morris Minor or even an eighties Delorean.
Some may be a labour of love and a fix up project over many years or it may have taken years of scouting classic car auctions and sites to find their perfect car.
But once you finally have your dream classic car, how do you go about acquiring classic car insurance? Here are a few tips:
- Does your car count as a classic car? Different policies have different views on what counts as a classic car. So make sure your car qualifies as there is no fixed definition between all car insurers. In relation to tax, a classic car is over 20 years old and worth more than £15,000.
- If your car is in your garage or driveway unused, are you still keeping within the latest insurance laws? Cars are now no longer allowed to sit uninsured and if they are taxed, they must be insured. If the car is not driven at all, the owner can apply for a Statutory Off Road Notification (SORN), which will mean they won’t have to pay insurance.
- Get your car valued before you take out the policy. This should be done by an approved and recognised industry expert. Most policies will agree to pay the market value of the car, but if the car is written off, it may not reflect the true value of the car. The best option is to agree a valuation with the insurance company before you take out the policy.
- Classic car insurance can sometimes be cheaper than insurance for a modern vehicle, if you find the right kind of cover for your car. Make sure you look at as many different policies and read the fine print; if a policy is cheaper will it offer the same amount of protection?
- Arrange to update the valuation of your car each year with your policy provider, so the cover stays as close to the true worth as possible.
- If you don’t plan to drive the classic car often, arrange with your insurer if you can get a cheaper deal if you agree to a lower mileage limit.
- Take what precautions you can to make sure your classic car is safe and secure. They are often the targets of thieves and vandals, so make sure it is stored in a garage or under cover.
Ben Austin is the CEO of Cost.co.uk, a UK comparison site that compares hundreds of insurance deals including car insurance, house insurance and more.