How Historic Tags Affect Auto Insurance Rates

Classic car insurance is often cheaper than standard insurance, but there are a few things to consider. Firstly, classic cars are typically defined as vehicles over 20 years old, though this can vary by insurer. Classic car insurance is based on the vehicle's agreed value, taking into account how its value will change over time. This is different from standard insurance, which assumes that a car depreciates in value. Classic car insurance also comes with usage restrictions, such as limited mileage and storage requirements, which contribute to lowering the premium. Additionally, classic cars are usually well-maintained and not used as daily drivers, reducing the risk of accidents and theft, which further lowers the cost of insurance. However, very high-value antique cars may still have higher premiums due to the potentially high cost of repairs or replacement.

Antique vs. classic cars

Antique and classic cars are cherished vehicles that captivate auto enthusiasts worldwide. However, the terms "antique" and "classic" can be confusing, and their definitions vary among different organisations and states.

Antique Cars

Antique cars are generally defined as vehicles that are over 45 years old. Some sources place this threshold at 40 years, while others state that antique cars were manufactured before 1976 or earlier. Antique cars are typically meticulously cared for, and their owners tend to have spotless driving records. This reduces the risk of accidents and theft, which can lead to lower insurance premiums.

Classic Cars

Classic cars are usually defined as vehicles that are over 20 years old. However, some sources state that a classic car is one manufactured in the 1990s or earlier. Classic cars often hold historical or collectible interest and have high sentimental or monetary value. They are typically well-maintained and not used as daily drivers.

Insurance Considerations

When it comes to insurance, antique and classic cars are often insured under specialised policies. These policies can provide significant savings compared to standard auto insurance due to factors such as limited usage and secure storage. However, the cost of insurance for these vehicles can still vary depending on factors such as the car's value, usage, storage conditions, and the owner's driving record.

In summary, while there is no universally agreed-upon definition of antique and classic cars, they are generally distinguished by their age, condition, and usage. Antique cars tend to be older and may have specific legal distinctions, while classic cars are slightly newer but still hold historical or collectible value. When insuring these vehicles, it's important to work with an insurance company that understands the nuances of historic automobiles to ensure proper coverage.

Cheaper rates for antique cars

Antique or classic cars are often cherished heirlooms, symbols of a bygone era, and a fascination for auto enthusiasts worldwide. Owing to their limited usage, secure storage, and the nature of agreed-value policies, insurance for antique cars is generally cheaper. Antique cars are not used as daily drivers and are meticulously maintained, reducing the risk of accidents and theft. Furthermore, antique cars tend to depreciate slower than modern cars, which could lower the premium.

However, it is essential to remember that insurance costs can vary depending on the unique characteristics of the car and the owner. Antique cars differ from conventional cars, and the same is true for their insurance options. Working with an insurance provider that understands the nuances of antique vehicles and offers appropriate coverage is crucial.

Specialized antique or classic car insurance policies are offered by insurance companies, providing significant savings compared to standard auto insurance. Nevertheless, the specific cost can still vary based on factors such as the car's value, usage, storage conditions, and the owner's driving record. Particularly high-value antique cars may command higher premiums due to the potentially high cost of repairs or replacement.

Classic car insurance is designed for vehicles with historical interest that are at least 10 years old, with antique cars being 25 years or older, and classic cars ranging from 10 to 24 years in age. This type of insurance is typically based on the vehicle's agreed-upon value, and additional coverage for spare parts and other benefits may be available.

When it comes to purchasing a classic car, it is essential to consider not only the purchase price but also the various associated costs. These include maintenance, registration, restoration, and insurance, which differs from standard auto insurance. Factoring in these costs will ensure a more accurate understanding of the total expense of owning a classic car.

Requirements for classic car insurance

Classic car insurance is a special type of auto insurance that reflects the uniqueness and value of the vehicle. It is designed for antique, vintage, classic, and collectible vehicles that are not used for daily driving. The requirements for classic car insurance vary by provider, but there are some general criteria that most insurers consider.

Age of the Vehicle

A classic car is typically defined as a vehicle that is at least 25 years old. However, some insurance companies may consider a car as classic if it is as young as 10 years old. The age requirement may also depend on the type of vehicle, such as antique, vintage, or classic.

Limited Use

Classic car insurance policies usually require that the vehicle is not used for daily commuting or errands. Most insurers will set a mileage limit, which can range from 3,500 to 10,000 miles per year. Some insurers may also require proof of an alternative vehicle for everyday use.

Safe Storage

Classic cars typically need to be stored in a locked, enclosed, and private structure, such as a residential garage or storage unit, when not in use. This helps protect the vehicle from theft and damage.

Good Condition and Regular Maintenance

The vehicle must be in good condition and properly maintained. Some insurers may require proof of regular maintenance and restoration work.

Clean Driving Record

A clean driving record is often required to qualify for classic car insurance. Serious offences such as reckless driving, repeat speeding violations, or driving while intoxicated may disqualify an individual from obtaining classic car insurance.

Agreed Value

Classic car insurance is typically based on an agreed value between the owner and the insurer. This value is specified in the policy, and the car is covered up to that amount without depreciation. It is important to regularly assess and adjust the coverage as the value of the vehicle changes over time.

Other Requirements

Other requirements may include a minimum age limit for the main policyholder, proof of ownership of another vehicle for daily use, and restrictions on racing or driving the vehicle on a racetrack.

Classic car insurance coverage

• Liability coverage: This covers damage to someone else's property or injuries to someone else in an accident that is your fault.
• Collision coverage: This covers damage to your car in an accident, regardless of who is at fault.
• Comprehensive coverage: This protects your car from damage caused by something other than a collision (such as vandalism or hail) or if it is stolen.
• Medical payments coverage: This covers medical bills for you and your passengers if injured in an accident, regardless of who is at fault.
• Underinsured/uninsured motorist coverage: This protects you if someone hits you and does not have insurance or enough insurance.
• Emergency road service: This covers towing and labor costs if your car breaks down.

To qualify for classic car insurance coverage, your vehicle typically needs to meet certain criteria:

• Age: The car should be considered a classic or antique, typically over 25 years old. Some companies may have lower age limits, such as 10 years.
• Usage: Classic cars should be used occasionally and not as a daily driver. They are typically used for exhibitions, club activities, and pleasure driving.
• Storage: The car must be stored in a secure and enclosed location, such as a garage or storage unit.
• Condition: The vehicle should be well-maintained, restored, or actively undergoing restoration.
• Historic interest: The car should have some type of historic interest or collectible factor.

It is important to note that the specific requirements and coverage options may vary depending on the insurance company and your location. It is always a good idea to shop around and compare quotes from multiple providers to find the best classic car insurance coverage for your needs.

Pros and cons of specialist insurers

Specialist insurers for classic cars have their pros and cons.

Pros

• Specialist insurers have experience in the classic car market and can tailor policies to your needs.
• They can offer flexible and competitive quotes.
• They can provide cover for all types of older vehicles, including vintage, pre-war, historic, and modern classics.
• They can offer discounts for car club members, limited mileage, and agreed value cover.
• They can provide cover for restoration projects and vehicles with modifications.
• They can offer multi-vehicle insurance, which can result in significant savings.
• They can provide cover for classic cars used for weddings, rallies, and track days.
• They can offer temporary insurance for classic cars.
• They can provide cover for young drivers, which is often cheaper than standard insurance.
• They can offer insurance for classic commercial vehicles.
• They can provide tailored insurance for vintage, veteran, historic, and pre-war vehicles.

Cons

• Specialist insurers may have more restrictions on the types of vehicles they cover and how they are used.
• They may require the vehicle to be stored in a locked garage or specific storage location.
• They may have age restrictions for drivers.
• They may have higher experience requirements for drivers.
• They may not offer as many discounts as standard insurers.
• They may have higher complaint rates related to claims.
• They may not offer online quotes, requiring direct contact.

Frequently asked questions