If you have not owned a classic car before it is important to realise that there are basic differences between what is known as a standard car insurance policy and the cover offered under one defined as classic car insurance, from a specialist car insurer.
Can you be covered under a Classic Car Policy?
One way to establish this is to phone a classic car insurance brokers and enquire.
What might be easily covered with one provider may be excluded by another. Fortunately most online classic car cover providers provide this information on the first page of their websites, so it is fairly easy to surf around and check your eligibility with different insurance companies.
The major variation between a standard policy and those offered by the classic car specialists is in the way that you use your classic vehicle, and in particular, how much you drive it.
The large mainstream insurers and price comparison sites will offer cover for older cars but will charge an additional premium because of its age. More importantly you will only be offered the current market value replacement if the car is covered under a mainstream policy and is deemed to be a write-off when you claim.
The other major difference between standard and classic policies is in the way that you are allowed to use your car under the terms of the agreement. Originally this type of vehicle insurance was designed for drivers who do not use their classic cars much.
Some providers will only cover a couple of thousand miles per year under the policy, but many specialist providers are now offering cover up to ten thousand miles per year. These policies reflect the fact that many drivers now use modern day classic cars as their main form of transport.
The lifestyle factor is more predominant in the calculation and issuing of policies for classic cars than in any other form of specialist motor underwriting.
Classic car insurance policies are now based primarily upon usage limits and consequently tend to reflect the fact that classic cars are used differently than a normal everyday car, although the all types of use will still apply.
The types of use are
1. social, domestic, pleasure
2. business and commuting
3. for hire and racing
Many a beloved classic motor will stay under wraps in the garage for many a month and is only brought out and paraded for special occasions and events.
Most specialist motor underwriters therefore appreciate that you may need a more tailored and flexible type of car insurance for a classic car, one that allows you to fit the policy around what is effectively your lifestyle risk. Your risk levels are calculated upon the way you use the classic car and the number of miles distance you cover in that car each year.
These so called rating factors are adapted to play a much larger role in the calculation of a classic car insurance premium than the traditional factors that weigh heavily in standard car insurance premium calculation, such as Age or Gender.
Price has tended in the past not to be a large driver in the classic car insurance market, where quality of cover for cherished vehicles has always been seen as the primary marketing message. Underwriters have appreciated that the classic car is quite often considered as a ‘baby’ within the family unit and may in the past have taken advantage of the object irrationality when considering price.
It is now possible to obtain tailored online cover for even the most obscure car marque and the introduction of online underwriting has introduced a welcome level of competition into what had become a stagnant market. Group and affinity market buying power has also helped stimulate growth and push premium prices down through bulk buying power schemes. Whatever aspirations you may hold as a classic car owner it appears that with technology you are more increasingly likely to be judged financially by your lifestyle than its trappings that you must insure.
The Internet has made it very easy to get classic car insurance quotes that were previously only available from specialist car insurance brokers on the high street.
You can find classic car insurance companies offering special deals for your particular classic by searching for your model type e.g Land Rover classic car insurance.
To compare classic car insurance online visit the UK’s leading classic car insurance specialists or call 0800 089 0182