Modern classic car insurance
If you are the proud owner of a modern classic car, you’ll want to do everything you can to look after it. This guide will help you do that. From things to consider when buying one to comparing modern classic car insurance – we’ve got you covered.
Keen to renew your love of driving with an analogue car? A modern classic car gives you more than just a warm fuzzy sense of nostalgia, it’s a hobby, a passion and a lifestyle. Read on and enjoy the ride…
Why choose a modern classic car?
Some people swear by modern cars – they’re faster, more reliable, and more economical than their older counterparts. Others can’t get enough of classic or vintage cars – it’s all about the style, craftsmanship and experience. But what if you like a bit of everything? That’s when you need a modern classic car in your life.
The modern classic car collector wants the speed, comfort and reliability found in contemporary cars, mixed with the feeling of joy when behind the wheel of an older model.
But be warned, prices of these 80s, 90s and 00s gems are rising, snapped up by a generation of 40 and 50 year olds craving a bit of childhood nostalgia, you need to be patient and have your wits about you.
Buying a modern classic can be a smart investment in the medium to long term. Especially if you keep hold of it until it’s about to turn into an outright classic. That’s when its value can really start to fly.
But whether you decide to invest in a modern classic as a way to boost your savings or pension pot or just for the love of a car that seems to get better with age, it’s always worth having specialist modern classic car insurance in place to protect your beloved investment.
When do modern cars become modern classics?
The term ‘modern classic’ is used to describe cars aged between 15 and 30 years old. However, the term has been adopted to such an extent, some people argue it has almost become meaningless.
Some ‘so-called’ modern classics don’t quite hit the mark.
A true modern classic is a car that was good when it first rolled off the production line – and is improving as each year goes by.
Modern classics have a unique style, eye-catching design, made an impact culturally, and are instantly recognisable as belonging to a particular era.
The good ones can prove hard to find. Bought as daily transport, they haven’t always been well looked after. So when you find a decent example, it’s worth getting excited about – and worth taking out a comprehensive car insurance policy, too.
A few examples of modern classic cars (for now, at least)
When it comes to modern classic cars, there’s plenty of choice. People take out classic insurance cover for a range of modern classics:
Fiat Panda 4x4
Small but mighty. The Fiat Panda 4x4 may not have the biggest of engines (965cc, fyi), but its four-wheel drive system makes it an off-road menace. Unfortunately, many of these pocket-sized powerhouses have fallen victim to rust, so they are few and far between. But that has only added to their allure and the reason why they are one of the must-have modern classics around.
Debuting back in 1996, the Elise has all the Lotus credentials: lightweight, compact and nifty. You can’t ask for much more in terms of speed, handling and driveability. Despite inspiring many lightweight sports cars, it was under the radar for years.
The first generation Elise has made its way into the classic car category, but later models proudly carry a ‘modern classic’ status. Discover some of the best Lotus cars ever made.
At the higher end of modern classic car affordability, but the lower end of Porsche prices, the Porsche 924 is a good investment. If you don’t have the budget for a Porsche 911, the 924 could be the answer. It delivers a completely different driving experience to its 911 cousin, we’re talking a two-litre, four-cylinder engine and two (quite small) rear seats.
Hardly a supercar, but decent performance and cheaper insurance premiums draw in the crowds.
Renault Clio Williams
Marketed with the F1 Williams team link, this hot hatch was actually built as a homologation special for the Renault Sport rallying team. With a reinforced subframe and uprated dampers, springs and more, 1990s boy racers (who could afford the insurance) were all over the Renault Clio Williams like a rash. It took the normal 16v and added 200cc - definitely a modern classic if you can get your hands on one now.
Volkswagen Golf GTI Mk2 or Mk3
The VW Golf Mk1 is highly desirable, but if you set your sights on the Mk2, you could bag yourself a cracking modern classic. Launched in 1983, these durable cars kept on going – which means mileage tends to be fairly high. They were swiftly followed by the Mk3, which has to be one of the best-selling cars of the 90s.
Whether convertible or hardtop, the VW Golf is an archetypal modern classic.
What you get with modern classic car insurance using Lancaster
Unlike standard car insurance policies, classic car insurance is specifically designed to cater to the unique needs of vintage and collector cars.
Here at Lancaster, we've been insuring classic cars for over 35 years.
Agreed Value Coverage (optional)
Unlike standard car insurance policies that consider a vehicle's actual cash value, classic car insurance policies can provide coverage based on the agreed-upon value between the vehicle's owner and the insurance company. This ensures that the owner receives the full value of their prized classic car in the event of a total loss.
Specialised Repair and Restoration Services (for replacement parts)
Classic car insurance policies often include access to a network of specialised repair shops and restoration services that have expertise in working on classic and vintage vehicles. This can really build confidence knowing that your classic car is treated with the utmost care and restored to its original condition if damaged and needs replacement parts.
Flexible Usage Limits
Classic car insurance policies with Lancaster offer more flexible usage limits compared to standard policies, allowing owners to enjoy their classic cars for leisurely drives, or use as a daily driver, and when attending car shows without worrying about exceeding mileage restrictions.
Limited Mileage Discounts
If you, like a lot of classic car enthusiasts, only use your classic car (or classic cars) for the odd drive in the summer months, you may be able to benefit from limited mileage discounts on your policy.
Breakdown Cover in the UK & EU (optional extra)
If you find yourself driving in the south of France to take advantage of the warm summer months in your classic car, breakdown cover offered by Lancaster may be able to cover you in the event of your car breaking down on you unexpectedly.
Spare Parts Coverage
Lancaster Insurance's classic car insurance policies also offer coverage for the cost of tracking down and purchasing hard-to-find or expensive replacement parts that may be necessary for maintaining or repairing your classic car in the event of a claim.
Car Show and Event Coverage
If you participate in classic car shows and events, our classic car insurance policies can provide coverage for damages or liabilities that may occur during these events subject to terms and conditions.
Examples of Modern Classics/what is a modern classic?
There are hundreds of modern classic cars on the market today. Insuring your car as a classic will be dependent on a number of factors. However, if you have one of the cars below or are looking to buy one, you might be able to have it insured under a classic car insurance policy.
To see whether your car is eligible for classic car insurance, please contact one of our team for more information.
Here are a few examples of cars that have turned into 'classics' based on their age alone:
- Aston Martin Vantage (between 2005-2007): A luxury sports car with a V8 or V12 engine, the Vantage embodies the perfect blend of modern design, advanced technology, and traditional craftsmanship. It's a great example of a British-made modern classic car.
- Land Rover Defender (2007): A rugged, versatile off-roader, the Defender is an iconic British vehicle with a timeless design. Despite its discontinuation in 2016, the model remains a sought-after modern classic, especially among off-road enthusiasts.
- BMW E46 M3 (between 2000-2006): Renowned for its performance and handling, the E46 M3 is considered one of the best sports cars of its era. With its timeless design and inline-six engine, it remains a popular choice for car enthusiasts in the UK.
- Audi R8 (2007): This mid-engine sports car is known for its striking design, impressive performance, and everyday usability. Its early models, especially the ones with a manual transmission, are becoming increasingly sought after as modern classics.
- Porsche 997 911 (between 2004-2007): A modern interpretation of the iconic 911, the 997 boasts a balance of performance, design, and heritage. Many enthusiasts consider it one of the last analog 911s, making it a desirable modern classic for Porsche fans.
- Lotus Elise Series 2 (between 2001-2007): A lightweight sports car with a focus on handling and driver engagement, the Elise Series 2 showcases the core values of the Lotus brand. Its unique design and driving experience make it a modern classic among car enthusiasts.
- Mini Cooper S (between 2001-2006): A reinterpretation of the original Mini, the Cooper S was a successful attempt to bring the iconic design into the 21st century. With its fun-to-drive nature and supercharged engine, it has become a modern classic in the UK.
Classic, modern, & future classic cars... what's the difference?
The key difference between a classic and a modern or future classic car lies primarily in their age and to a smaller degree, their design, and technological advancements.
Classic cars, typically defined as vehicles over 15-20 years old, embody a timeless charm and showcase the automotive industry's historical evolution. They often possess unique design elements, limited production runs, and a nostalgic appeal that attracts collectors and enthusiasts alike.
We've covered what a modern classic car is on this page already (see examples above), but to sum up what the difference is, a modern classic car is a car that has just hit that 15 years of age mark. Most enthusiasts will also need to see some kind of cultural significance or level of 'prestige' from the car in question as well.
Future classics are comparatively newer models that exhibit innovative engineering, cutting-edge technology, and groundbreaking designs. These vehicles possess the potential to become highly sought-after in the future due to their distinctive features, rarity, and the impact they have on the car world.
What does modern classic car insurance not cover?
Modern classic car insurance provides specialised coverage for vintage and collector vehicles, ensuring their unique value is protected. However, it's essential to understand what classic car insurance does not cover to avoid any surprises.
- Damages caused by a driver not covered on your policy
- Wear and tear of the vehicle
- Value depreciation (agreed valuation is available as an optional extra)
- Tyre damage from braking
- Tyre punctures & general damage to tyres/rest of the car from regular usage
For more information on possible exclusions in your policy, please contact one of our specialist team who will be happy to discuss this with you!
Lancaster is the insurance broker of choice for classic car owners providing cover for over 88,000 classic cars (as of May 2019).
We arrange classic car insurance for over 40% of all MG Bs on the road and over 30% of all Land Rover 88s and MG Midgets – proving that classic car owners place their trust in us.
At Lancaster Classic Car Insurance Services, we aim to find the best price for your individual cover needs. We appreciate the importance of recognising the true value of your classic car and our team will be happy to talk to you through our benefits, such as agreed valuations and salvage retention.
We will offer you a tailored policy, bespoke to your requirements – this can include cover for:
Lancaster Insurance Services is committed to supporting the classic car clubs.
Owners club members may enjoy discounts of up to 25% off their insurance premium (the level of discount offered by each insurer differs and is subject to underwriting criteria).
At Lancaster we understand that not every situation is the same, especially when it comes to Classic Cars.
That is why in addition to our Lancaster Classic Car Insurance Services, we also can arrange the below:
- Modified Classic Car Insurance
- Multi-vehicle Insurance
- Wedding Car Insurance
- Limited Mileage Insurance
- Laid Up Cover
- Two Year Agreed Valuation
Are you passionate about Classic Cars?
Here at Lancaster, we not only provide Classic Car Insurance but we’re constantly looking for ways to support the Classic Car community at events, sponsorship's, giveaways and sharing care tips for classic vehicles.
We’ve partnered with the team at Meguiar’s to showcase one of their awesome products each month.
This time we’re featuring the Meguiar’s Ultimate Snow Foam contains a specialized Xtreme Cling foaming action that delivers an intense foam that sticks and clings to painted surfaces gently loosening road grime, dirt and contaminants.
Fine-tuned to carefully and thoroughly clean coated, waxed or sealed finishes while preserving protection and leaving a brilliant, swirl-free shine.
We will listen to your requirements for cover, and discuss the best options with our panel of expert underwriters, to see if we can cover your cherished vehicle.
In May 2018 the Department for Transport announced that cars that were built more than 40 years ago exempt from MOT testing, with the option for owners to voluntarily have their car tested if they feel it needs checking.
Modern classic car insurance versus regular car insurance cover
Every car owner needs to think about insurance before getting behind the wheel. But if you own a modern classic car, you might be wondering whether you need specialist insurance or if a regular car insurance policy will do.
Before you decide on which insurance is right for you, there are a number of things to consider.
Firstly, you need to think about how much you drive the vehicle. Regular car insurance assumes you’ll be clocking up the miles as a daily driver – and insurance providers calculate insurance premiums accordingly. However, when it comes to a car that is your pride and joy, your annual mileage could be much lower.
Next up, you should consider how you store your car. While you might be happy to park your run-around on the street outside your house, modern classics command a bit more TLC. With that in mind, some classic car insurance providers require a vehicle to be stored in a garage or another off-street location in order to qualify for specialist insurance.
As well as mileage and storage, modern classic car insurance might also stipulate the vehicle is not your only car, has been valued at a certain amount, and that the driver is aged 25 years or older.
Although here at Lancaster, we can help younger drivers find the cover they need, too. If you’re a 17-year-old or 18-year-old classic car fan, give us a call.
How much does modern classic car insurance cost?
The cost of modern classic car insurance can vary hugely. In the same way that every car is unique, so too is the way car insurance premiums are calculated.
Modern classic cars vary in value. For example, you will pay far more for a Maserati Granturismo than you would a Renault Megane RS. The price you pay on insurance for each one will reflect that difference.
But it’s not just the type of car that is taken into consideration. Insurance providers look at things like how much it is driven, your age, and your claims history.
Often, modern classic car insurance works out cheaper than standard car insurance. That’s because insurance companies see a modern classic car as less likely to be involved in a claim. It might be garaged or do lower mileage than your average runaround.
If you keep a car in good condition and meet an insurance provider’s criteria, you could find the cost of insuring a modern classic car is lower than you think.
How can I lower the cost of my modern classic car insurance?
Whatever the cost of your modern classic car premium, there are usually ways you can lower it.
Here are some tips to help reduce your next car insurance quote.
Cars that have been modified often mean higher insurance prices. Some providers will refuse to insure modified cars, but it is important to disclose any modifications to ensure your insurance cover remains valid should you have to make a claim. Here at Lancaster we specialise in finding cover for modified cars.
Think about security
Older cars tend to have outdated or reduced security features. Keeping your car stored in a secure garage when it is not in use or having a tracking device fitted could help keep thieves at bay.
Keep low mileage
The more miles you clock up, the higher your car insurance. Some insurance providers set a limit on how many miles you can rack up each year. Stick to that limit and you might be rewarded with a discount.
Join a car club
Joining a car club lets you meet like-minded people and take part in classic vehicle events. But that’s not all. Membership can also help you save money on your modern classic car insurance. At Lancaster, we have strong links with car clubs across the UK, and offer membership discounts of up to 25% on some insurance policies.
How to look after your modern classic car
Modern classic cars are things of beauty and deserve to be taken care of. Looking after your car doesn’t just keep it looking shiny and new, it can also work wonders for your car insurance premiums.
But remember: Keeping a modern classic in great condition takes time and patience. Here are a few tips to prevent your pride and joy showing its age:
Keep it out of the elements
Bad weather can quickly cause your car to become corroded or tarnished. Keeping it in a well ventilated, dry garage or storage facility will give it the protection it needs. You might also think about using a dust cover when the car isn’t in use, to prevent dirt and grime covering the paintwork.
When the weather permits, you should also clean and wax your car regularly. This protects the paintwork by adding an extra layer over the paintwork. Plus, it is one of the simplest things you can do (other than taking out comprehensive insurance cover) to protect your pride and joy.
Start it frequently – and give it a spin
Starting your car and driving it at least once a fortnight helps prevent problems with the battery, fluids, brakes, clutch and more. Cars were built to be driven, so take it for a spin round the block – or further afield – to preserve the car, help retain its value and keep your annual mileage within the insurance policy limits.
Avoid driving on salted roads
When we say: drive your car regularly, we actually mean: drive your car regularly, but never on salted roads. Salt is the nemesis of any classic or modern classic car owner. It accelerates the build-up of rust and unless you wash it off immediately, will inevitably end in a corrosion catastrophe. You have been warned!
Disconnect the battery
If you are not using your car for a long period of time, you might think about disconnecting the battery to prevent it from going flat. Alternatively, you can connect it to a trickle charger which will prevent the battery from draining while not in use. Jump-starting a modern classic car can damage the electrics, and replacing a battery isn’t cheap, so prevention is definitely your best option.
Stick to the service schedule
When you’re not using a car much, it can be tempting to skip routine servicing and oil changes. However, you should always stick to the manufacturer’s recommended service schedule where possible. Oil can degrade over time causing all sorts of issues and regular services will keep your motor in good shape.
If you fancy a bit of DIY maintenance on your modern classic car, just make sure you know what you’re doing to avoid an unnecessary insurance claim.
6 things to consider when buying a modern classic car
Thinking about investing in a middle-aged motor of your very own? Well, why wouldn’t you?
But before you rush into a purchase, you need to know how to spot an absolute belter from an old banger.
Here’s what to consider when buying a modern classic car.
Buy for love, not £££s
It’s a classic piece of investment advice, but you have to buy what appeals to you as a car owner, not what you think will make money down the line. You need to consider the cost of maintaining, insuring and taxing the car, relative to its future appreciation value. Making money is great, but loving your car here and now is even better.
Take nothing for granted
Whether you’re buying a car privately or through a trader, you need to know what you are getting for your money. If you are replying to an advert, call the seller first and ask a list of pre-prepared questions.
How long has the owner had it? Why are they selling it? Has it been involved in an accident? How often does it get driven?
All these questions will give you a sense of whether it’s worth making a trip to see the car. If you do go to see it, ask to see where it is stored.
That 4-letter word: RUST
When it comes to older cars, rust is always going to be an issue. And just because paintwork looks perfectly pristine, doesn’t mean there’s nothing lurking beneath the shiny exterior. Any car that has been used in wet weather will have signs of corrosion.
Getting a car inspected by an expert can help give you peace of mind. A specialist knows exactly what they’re looking for – and more importantly – where to find it.
A full service history isn’t the be all and end all
Despite what you may think, a full service history doesn’t guarantee a dream modern classic car. If you are presented with a bulging log book, go through it with a fine-tooth comb, looking for anything that doesn’t add up. A service book is easy to fake so don’t rely on it alone.
Instead, ask plenty of questions and see if there are invoices that match the work reportedly carried out.
Think about spare parts
Parts for modern cars are easy to come by. Parts for older cars can be much harder to track down. Check the availability of spare parts online, and look into any specialist breakers that could supply parts for a particular make and model. After all, there are only so many things insurance can cover.
Don’t make your decision based on mileage alone
You might be inclined to rule out any cars with a mileage above 10,000. And while this does make sense (components may be worn out and the car could be harder to sell on), it’s wise to see the bigger picture. Any modern classic is at least 10 years old, so even if a car has low mileage, parts will be tired – especially if no preventative maintenance has been carried out.
Cars like to be driven, and problems can just as easily arise when a car hasn’t been driven much compared to one that has.
Research your insurance options
You’ll want to take out insurance for your modern classic car, but you don’t want to take out any old insurance policy. Specialist modern classic car insurance cover will ensure you get the best price for your needs. At Lancaster, we find tailored, comprehensive insurance policies that will protect your investment now and in the future.
Benefits of insuring modern classics with Lancaster
At Lancaster, we offer modern classic insurance policies that come with a range of benefits. As your insurers, we can offer you:
- Car Club member 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
- Limit Mileage Discounts
You can also arrange breakdown cover, multi-vehicle insurance, wedding car insurance, limited mileage insurance, and laid up insurance cover with us.
We’re specialists in arranging insurance cover for your pride and joy. Our tailored and comprehensive insurance policies are designed to protect your investment.
How do I get a quote for modern classic car insurance?
Getting vintage, classic and modern classic car insurance quotes from us couldn’t be easier.
You can get an instant online insurance quote with just a few clicks.
You can request a call back and we will be in touch to discuss your insurance needs at a time to suit you.
Or, you can call us on 01480 484 826 to discuss the variety of insurance options available to you.
Get in touch to find out how we can help you insure your modern classic motor.
How do I make a claim on my modern classic insurance?
We have a dedicated claims line to help you when going through the claims process.
For more information on what to do in the event of an accident and who to call when making a claim, click here.