Owning a classic car is becoming more popular , sometimes we buy them because we’ve always wanted one but could never afford it previously, other times as an investment.
Generally, classic car insurance policies cost less than for insurance for the modern cars. This is due to the fact that most will really look after the car, keeping it garaged when not in use and will not use the car for everyday use thereby only driving say a few thousand miles a year.
Premiums can still vary significantly, so it still needs a little research to ensure you obtain the right cover for you at the right price! Think about obtaining a valuation certificate from a specialst classic car dealer for your car on a regular basis.
Values can vary significantly from year to year and you don’t want to be left underinsured. Insurance companies will not hesitate to restrict payout in the event of an insurable claim should this be the case.
Beware, it is quite likely that if, at the time of the claim, your vehicle was actually worth 25% more than the value you insured it for on your policy, your insurer may decide to pay out only 75% of the insured valuation. They will not pay out up to the value you had insured it for!
Therefore, check whether your insurer will permit you to increase the agreed valuation each year.
Consider restricting the mileage you will do in the car. This can often be set at anything between 1,500 and 10,000 miles and you can expect to realise some good saving on the premium if you keep the mileage really low at say 1,500 – 2,500 miles a year.
If you think you are likely to exceed it in any 1 year, find out whether this mileage restriction can be adjusted.