Which is the best insurer for classic cars?

Classic cars are often a financial investment and their upkeep tends to absorb a great deal of time and effort. It's therefore important to make sure you have the right kind of insurance cover should something unexpected happen.

Good classic car insurance offers a range of cover options especially suited to relatively high value old cars that won't necessarily do many miles, but may take part in various events and require special attention when they go wrong.

While you might be able to get your classic car covered with a standard car insurance policy, this may turn out to be more expensive than a specialist policy.

Classic car insurers

There are a number of insurers keen to attract the attention of classic car owners. Most of them are smaller, dedicated companies, though there are a couple of mainstream insurers that will cover you.

Some of the better classic car insurers include Footman James, Hagerty International Limited, and Adrian Flux.

Hagerty International offers slightly better cover if your car is in use, as it offers both breakdown cover and an agreed valuation as standard.

For cars that are being worked on, both Footman James and Adrian Flux include laid-up cover as part of the policy.

Does my car qualify for classic car insurance?

There's no hard and fast rule about when a car becomes classic. However, there are taxation rules that inform the general consensus.

HMRC defines a classic car for company taxation purposes as being over 15 years old and having a value in excess of £15,000.

There's also the rule that cars built over 40 years ago are exempt from paying road tax (more properly known as vehicle excise duty).

While most insurers will therefore expect a car to be at least 15 years old before they consider it a classic, there are exceptions.

For example, prestigious and rare models may fit the definition from a much earlier age.
In practice, providers tend to vary widely in their definition.

Admiral requires a car to be between 35 and 70 years old. LV classic car insurance says that classic cars need to be more than 20 years old and have a maximum value of £40,000, while Carole Nash classic car insurance classes any car over 15 years old as classic.

If you're not sure whether your car might be considered classic, it's best to phone round and check with individual insurers.

Do classic cars cost more to insure?

In a word, no. Why? Because most people with classic cars don't use them as a day-to-day vehicle, they're on the road for less time and therefore less likely to be involved in an accident.

They're also more likely to be well maintained and only used in the summer months.

Classic car insurance isn't necessarily more expensive, as reduced miles and summer-only use are taken into account.

So, while a normal car policy starts at around 7,000 miles a year, a classic car policy might offer coverage for someone driving just 2,000 miles a year for less than £100.

Indeed, many insurers offer a discount for limited mileage. These include Footman James, Hagerty International Limited, Adrian Flux and Lancaster Insurance Services.

Types of policy

When you insure a normal car, there are normally three options: Third-party only; third-party, fire and theft; and comprehensive.

However, with classic car policies, you almost always have to opt for comprehensive cover which itself tends to be more detailed than that typically offered on a normal car.

Extras

Depending on the insurer, you will be offered a variety of extras. How useful they are will depend on how you intend to use the car.

For example, all the policies we looked at provide cover if the car is taken to - and participates in - shows and events. Interestingly though, only Hagerty International Limited offers breakdown cover as standard.

Look out for policies which include participation at classic car shows if this is something you do.

If you do opt for breakdown cover, you may be allowed to choose which garage your car is repaired in, or take a cash payment to cover the labour and parts of repairing it yourself.

Some insurers allow you to retain the salvage if the car is involved in a bad accident. Footman James, Hagerty International Limited, Lancaster Insurance Services, LV and Admiral all offer this as standard.

More standard extras include the use of a courtesy car while your car is being repaired - useful if your car requires specialist parts that aren't easily obtainable.

Another is windscreen cover, which covers the cost of repairing your windscreen if it gets damaged. This can come in handy with classic cars that tend to sit lower on the ground, making their windscreens more susceptible to airborne debris.

Specialised policies

If you own a classic sports car you can get a policy to cover using the car on a race track. Similarly, modified cars can get competition car insurance for competitive motor sport.

Cover is also available for those who hire their cars out for weddings and other events.

Reductions

Insurers may reduce the cost of your policy if you have a no-claims history. Others will give a discount for applying online - much like with a normal car insurance policy.

You might also be able to get a reduction if you insure more than one classic car under a single policy. All the insurers we looked at offered this.

Joining a car club can help save money too. Members are often offered discounts by insurers, who believe they are more serious about looking after their car, and thus more averse to being involved in a collision.

Footman James, Hagerty International Limited, Adrian Flux, and Lancaster Insurance Services all provide discounts to car club members.

It's important to agree a value of your vehicle with the insurer. This may involve getting a professional classic car valuation if the insurer is unable to value the car themselves. Regular car insurers will use the market value of a vehicle of the same age and type, which will typically be far lower than your car is worth.

Insurers who offer an agreed valuation as standard include Hagerty International Limited, Adrian Flux, and LV.

Exemptions

You don't need classic car insurance if your vehicle is legally off the road. To comply with the law in this respect you need to complete a Statutory Off Road Notification (SORN).

While insurance isn't a requirement, it may be wise to obtain what's known as laid-up insurance. This covers your car while it's being worked on, stored, or moved and typically costs less than £100 per year.

Footman James, Adrian Flux, Lancaster Insurance Services and LV all offer laid-up cover as standard.

Laid-up insurance will cover a SORN classic car while it's off-road, being worked on or stored.

Summary

When we insure our normal cars, it's often just a matter of finding the cheapest policy. Not so with classic cars. Instead, owners are looking for wide-ranging cover that protects their vehicle whether it's being exhibited at shows or laid-up at home.

In this respect, Hagerty Insurance Limited, Footman James and Adrian Flux are all good choices.

If you have very specific needs then Hagerty Insurance Limited should be your first port of call. They are a small - and knowledgeable - company dedicated solely to classic car insurance.

Your next best option is Footman James, who specialise in niche insurance requirements - whether that's cover for historic buses or insurance for vehicles used in funeral hire.

Adrian Flux does provide good cover, but is a much larger company so may not have the expertise immediately to hand. However, you may be able to get a cheaper deal if your requirements are relatively straightforward.

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