Classic Car Insurance Requirements

What is classic car insurance?

Classic car insurance is an insurance policy specifically designed for vehicles that are classified as 'classics', such as vehicles of a certain age, or specialist nature.

The rarity and age of vintage cars makes them highly desirable and high value collectable models.

Therefore, it’s important to ensure you have the right insurance policy in place.

What age is a car considered to be a classic?

When does an old car become a classic car? This age-old question often sparks a lively debate among classic car owners and collectors alike.

Generally, a classic car is defined as a vehicle that is at least 15 to 25 years old and has a market value of at least £15,000 (based on a professional appraisal).

However, these 'facts' and figures come from HMRC when defining what classifies as a classic car for specific legislation purposes..

Another common question we see amongst classic car enthusiasts is 'What age does my classic car become tax exempt'?

To answer this question, we'll have to jump back over to the HMRC's website to find a specific definition. According to the HMRC, the following criteria must be met for your classic car (which becomes more of a vintage car based on the following definition):

• "The vehicle was built or first registered more than 40 years ago
• No ‘substantial changes’ have been made to the vehicle in the last 30 years, for example replacing the chassis, body, axles or engine to change the way the vehicle works"

Source: HMRC

Now, although this is the definition given for legislation purposes by the HMRC, classic car lovers would likely disagree with what this information. Ultimately, the definition of a classic car is more up to the interpretation of the enthusiast.

For example, you might consider the Reliant Robin a classic car however, within the parameters mentioned, the valuation of this three-wheeled icon wouldn't make it eligible to be considered a classic.

For reference, here are a few examples of our more popular classic cars that we insure:

• MGB
• Mazda MX5
• Landrover 88 / 90
• MG Midget
• MG TF
• Volkswagen Golf
• Austin Mini
• LandRover Discovery
• Ford Escort
• Morris Minor

What makes a car eligible for classic car insurance?

First and foremost, the age of the car plays a critical role in determining its eligibility for classic car insurance. Generally, vehicles that are at least 15 years old or older are considered potential candidates for this type of coverage.

The rarity and collectability of the car are also important factors that contribute to its qualification for classic car insurance. Limited edition models, discontinued or exotic marques, and vehicles with notable provenance are more likely to be considered eligible for this specialised coverage even if they may not hit the '15 year old' criteria stated above.

To find out whether your car is eligible for classic car insurance with Lancaster Insurance, you can get in touch with our team by requesting a callback or use our online form to get a quote. Additionally, the condition and maintenance history of the car are vital in establishing its eligibility.

Well-maintained, preserved or restored vehicles that showcase their original features and components are more likely to qualify for classic car insurance.

With classic cars defined as being older than 15 years of age (from the date of insuring), it's important to stay on top of repairs that may have been needed prior to taking out your insurance policy.

This may reduce the likelihood of further issues with your classic car happening which, in turn, reduces the risk of accidents or claims being submitted in the future.

Insurers typically require a detailed assessment of the car's current condition, including photographs and inspection reports, to ensure that the car has been properly cared for and maintained.

A few articles online may lead you to believe that your classic car can't be used as a daily driver to qualify for classic car insurance, however, with Lancaster Insurance you can use your classic as a daily driver and still qualify for an insurance policy

*subject to underwriting approval

What factors are considered when quoting for classic for insurance purposes?

There are a few factors considered when you're getting your car quoted for a classic car insurance policy. Overall, a classic car insurance policy takes into account a lot of the same considerations as standard car insurance such as age, make, model, etc.

However, there are a few differences between the two types of insurance that are worth noting:

• The car's age, make, and model are assessed, as these details directly impact the vehicle's value and replacement cost in the event of a complete write off or for replacement parts.
• The car's condition, including any modifications, restorations, or upgrades, may influence your insurance quote.
• The frequency of use and annual mileage also play a significant role, as limited use reduces the risk of accidents, potentially lowering the premium and allowing you to benefit from limited mileage discounts.
• The storage method and security measures implemented to protect the classic car may also come into consideration, as proper storage and security can minimise potential damages and theft.
• Driving history, experience, and claims history also factor into the classic car insurance quote, as responsible drivers with a clean record are seen as lower risk.

What are the different types of classic cars?

There are various definitions for classic cars, depending on their age and year of manufacture. Here, we’ve broken down the categories to help you differentiate between classic models.

• Veteran models are historic cars manufactured before 1905 or before 1919, the end of World War II.
• Vintage cars are models made between 1919 and 1930.
• Post-Vintage cars are vehicles produced between 1931 and by the end of World War II in 1945.
• Classic cars are those that are 20-40 years old.
• Modern classics are cars that are at least 15 years old but are not more than 40 years old.

What to consider when getting classic car insurance

Before taking out a classic car insurance policy there are a few considerations you might want to consider before completing your quote.

Have you made any modifications to your car?

Many classic car owners have opted to make modifications to their vehicles to enhance performance, appearance, or simply to personalise their rides. Some of these changes can range from simple upgrades such as installing a new sound system or custom paint job to more complex alterations like engine tuning or suspension adjustments.

While modifying your car may seem like an exciting endeavour, it is crucial to consider the impact these modifications can have on your classic car insurance policy.

Prior to undertaking any modifications, it is advisable to consult with your insurance provider to ensure you have the appropriate coverage in place & to see if these modifications will incur any additional costs or if they simply will or will not be included within your existing policy.

What’s the value of your car?

Understanding the value of your car is important not only for potential re-sale purposes but also when seeking appropriate coverage in the form of classic car insurance.

Accurately evaluating your vehicle's worth involves considering factors such as its make, model, age, condition, and current market trends.

By researching comparative sales and consulting industry experts, you can gain a comprehensive understanding of your car's true value.

Are you considering storing your classic car in a garage?

Storing your classic car at home is an important aspect of maintaining its value and ensuring its longevity and may also be a factor when taking out an insurance policy. You may want to consider investing in a high-quality, weather-resistant car cover that protects against dust, moisture, and UV rays which can all damage the paint work on your car.

Additionally, routinely inspect and clean the vehicle's interior and exterior, as well as its mechanical components, to prevent any potential damage or deterioration that may have built up by keeping your car outside 'in the elements'.

If possible, storing your classic car in a locked garage located at your home is typically the best solution for storage. This may also be able to help with reduced insurance premiums.

If you have any further questions about our insurance requirements and aren't quite sure on the right answer, you can get in touch with our specialist team by requesting a call back.

Does Lancaster cover modified classic cars?

Lancaster Insurance Services work with a panel of specialist insurers in the modified market, saving you the time and money calling various insurance providers.

Depending on the modification, we may still be able to provide you with a coverage option that suits your needs.

For more information on which modifications may or may not be covered within our policies, our friendly advisers are on hand to provide guidance on how your car modifications may affect the price you pay for insurance.

What are the benefits of classic car insurance?

Look at some of the benefits you can expect to see when approved for a classic car insurance policy with Lancaster Insurance below!

Our team of experts can handle all aspects of comparing classic car insurance so that you have more time to enjoy driving and maintaining your classic vehicle.

Lancaster Insurance Services has access to some of the most competitive classic car, vintage car, and classic vehicle insurance schemes in the UK.

Here are some of the benefits you can enjoy when taking out specialist cover:

• Classic Car Club member offer discounts
• Static Show Cover
• Historic Rally Cover
• Choice of repairer
• Salvage Retention
• Free EU cover up to 90 days
• Two Year Agreed Valuation available for £18
• Laid Up Cover Available
• 24 Hour Claims Helpline
• Limited Mileage Discounts

Can I insure a classic car for business?

Yes! Lancaster Insurance providers can cover a classic car used for business purposes. When calling for a quote, you should specify how you intend to use your classic vehicle so that our experts can arrange the most appropriate cover for your needs.

How do I get a classic car insurance quote?

To get a quote for your classic vehicle or to receive a quote for any of our other insurance products, you can get a quote through our website by clicking here. If you would like to talk to one our specialist vehicle insurers, you can give us a call on 01480 484 826 to receive more information.