Classic Car Insurance Tips

Top tips for protecting your passion

For many people, their classic car is as much a part of the family as their dog or cat.

Hours spent polishing, tweaking, oiling and often just admiring their cherished motor are almost as important to loving owners as actually taking to the roads.

But whether it's a humble Morris Minor or a vintage Rolls Royce, accidents happen and owners need to make sure they have the right insurance in place should calamity strike.

The UK's largest specialist insurance broker, Norfolk-based Adrian Flux, gives the lowdown on how to make sure your classic is properly covered.

Join a classic car club

If you're not a member already, joining a classic car club can prove valuable in more ways than one. As well as earning discounts of up to 15 per cent off your insurance, often covering your membership fee, there's a thriving social scene with the chance to meet like-minded enthusiasts and show your car off at shows and rallies.

Limit your mileage

Most people don't use their classic cars as day-to-day transport, and limited mileage policies can lower your premiums significantly. If you only drive your car 1,500 miles a year, don't insure it for 5,000.

Get an agreed value

If your pristine, restored MGB GT is insured on a standard policy, you will almost certainly lose thousands in the event of a total loss claim. That's because insurers use price guides that will probably not take into account the true value of your individual car, but rather use an average of all MGB GTs in good condition. So make sure you agree your classic's true value when you take out your cover.

Don't fall foul of new laws

The owners of classic cars are those most at risk of falling foul of new laws aimed at catching more uninsured drivers. Under new rules introduced this summer, all cars which are taxed must also be insured. So if you have only insured your car for summer but have forgotten to declare it as off the road (SORN) with DVLA, you could receive a hefty fine.

Get laid up cover

If your car is garaged in the winter months, make sure you either maintain your comprehensive insurance or arrange for laid up cover to protect it in the event of fire or theft. We would recommend maintaining tax and insurance all year round to take advantage of those sunny autumn and winter days. You can also get laid up cover for restoration projects.

Steer clear of comparison sites

While comparison websites can be great for standard, modern cars, you'll get a much better deal on classic insurance by picking up the phone to a specialist broker who will have access to a far greater range of appropriate schemes.

Is your car a modern classic?

Your car doesn't have to be 25 years old to be classed as a classic. Certain prestige cars as little as five years old can qualify for a classic car policy, as long as it is used as a second car and you can limit your mileage.

Declare any modifications

If you've modified your classic in any way, make sure you tell your insurer - it may well not affect your premium but if you fail to declare modifications, your vehicle will not be repaired on a like-for-like basis in the event of a claim or, worse, your cover could be void if, for example, you've replaced your standard engine with a larger one.

Earn some cash from wedding hire

Consider hiring out your classic for weddings, but make sure you tell your insurer because cover for hire and reward is an optional extra on most policies.

Use your garage

Some policies will only provide theft cover for more valuable classics while garaged overnight. So make sure you remember to use your garage!

Article posted on 30 Nov 2011