Classic car insurance: how best to protect your vintage vehicle

Car insurance costs are on the rise, but you may not pay as much if you are covering a vintage vehicle.

The average annual cost of car insurance in the final quarter of 2024 was £621, according to the Association of British Insurers.

The figure is up 15% annually "against a backdrop of total claims payouts that were 17% higher in 2024".

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But when it comes to premiums in the classic car market, there is quite a difference.

When does a car become a classic?

There is no "definitive answer" on when a car becomes a classic, said CompareTheMarket, with some thinking it is based on "timeless design and technological or nostalgic value".

If you use the car tax exemption date of 1984 as a cut-off, then any car over 40 years old is classic "even if it's not very desirable," said the comparison website.

HMRC considers a car to be classic when it's over 15 years old and has a market value above £15,000, said Howden Insurance, but some insurers may require the car to be 25 or 30 years old "to qualify for classic car insurance".

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", said Uswitch, so it is possible you've been driving one "without even knowing it".

Most classic car policies start once a car is at least 20 years old, said Carwow, and they are "usually much cheaper than you'd expect".

How much is classic car insurance?

Classic car cover is often cheaper than a standard insurance policy, said Go.Compare as vintage vehicles are typically "well-maintained, stored safely and driven less frequently".

These policies are for drivers who use older cars "infrequently and mainly for 'leisure' purposes", said MoneySavingExpert, so they won't cover you for "doing the school run or daily commute".

As with standard car insurance, you can get third party, third party fire and theft and fully comprehensive cover.

Classic car policies will also ask for an agreed valuation, said Which? – this is a "pre-agreed sum" your insurer pays out if your car is declared a total loss.

There is also cheaper "laid-up cover" covering vintage vehicles that are no longer driven on the road but still require damage, fire and theft insurance.

How to cut the cost of classic car insurance

Like all insurance, said Howden, "there's no one-size-fits-all cost" for classic car insurance.

Premium costs will depend on value, age and your claims history.

Classic cars won't have the same security features as a modern-day vehicle, added Uswitch, so installing an alarm or immobiliser will improve security, but "check with your insurer what impact it will have on your premium".

General car insurance "hints and tips", such as keeping the car in your garage and reducing mileage, "can also be applicable to classic car insurance", said MoneySavingExpert, adding that joining a car club could "knock up to 25% off your insurance".

Car club membership is seen as evidence of your "commitment to taking good care of your car", said Go.Compare.

Some insurers may require owners to keep the car in a garage or to limit mileage, but "despite these caveats", said SlashGear, premiums can be a "bargain" compared with regular insurance.