Car insurance costs have been increasing, but owners of vintage vehicles may find themselves paying less. According to the Association of British Insurers, the average annual cost of car insurance in the final quarter of 2024 was £621. This figure represents a 15% annual increase, “against a backdrop of total claims payouts that were 17% higher in 2024.” However, the classic car market offers a different landscape when it comes to premiums.
Defining a Classic Car
Determining when a car qualifies as a classic is not straightforward. CompareTheMarket notes that there’s no “definitive answer,” with some considering factors like “timeless design and technological or nostalgic value.” Using the car tax exemption date of 1984 as a benchmark, any car over 40 years old is classified as a classic, “even if it’s not very desirable,” according to the comparison website.
Howden Insurance states that HMRC considers a car classic when it’s over 15 years old and has a market value exceeding £15,000. However, some insurers may require the car to be 25 or 30 years old “to qualify for classic car insurance.” Uswitch suggests that a classic car “can be anything from an Aston Martin or a vintage Porsche to any make of car that’s older than 15 years,” possibly making you a classic car owner without realizing it.
Carwow indicates that most classic car policies begin once a car is at least 20 years old, and they are usually “much cheaper than you’d expect.”
Classic Car Insurance Costs
Go.Compare explains that classic car cover is often more affordable than standard insurance because vintage vehicles are typically “well-maintained, stored safely and driven less frequently.” MoneySavingExpert specifies that these policies suit drivers who use older cars “infrequently and mainly for ‘leisure’ purposes,” with no coverage for “doing the school run or daily commute.”
Similar to standard car insurance, coverage options include third party, third party fire and theft, and fully comprehensive policies. Which? points out that classic car policies usually involve an agreed valuation, which is a “pre-agreed sum” the insurer pays out if the car is declared a total loss. Additionally, there’s cheaper “laid-up cover” for vintage vehicles not driven on the road but still needing damage, theft, and fire insurance.
Tips to Reduce Classic Car Insurance Costs
Howden emphasizes that, like all insurance, there’s no “one-size-fits-all cost” for classic car insurance. Premium costs are determined by factors such as value, age, and claim history. Uswitch notes that classic cars lack the same security features as modern vehicles, so adding an alarm or immobilizer can improve security, but “check with your insurer what impact it will have on your premium.”
MoneySavingExpert mentions that standard car insurance tips, such as keeping the car in a garage and reducing mileage, “can also be applicable to classic car insurance.” They also suggest that joining a car club could “knock up to 25% off your insurance.” Go.Compare suggests that car club membership demonstrates your “commitment to taking good care of your car.” SlashGear highlights that while some insurers may require owners to keep the car in a garage or limit mileage, the premiums can still be a “bargain” compared to regular insurance, “despite these caveats.”
