When does a car become a classic?

What makes a car a classic? Is it age alone? Let’s take a look at how insurance companies decide on classic status.

So you’ve got an original Renault Clio that’s gathering dust in a garage? At what point – if ever – does this vehicle stop being simply a tired old workhorse, and become (drumroll) a classic?

The question of when cars journey across the border from ‘a bit past it’ to genuine classics is an interesting one. It can vary greatly from vehicle to vehicle, for one thing.

Some vehicles can, in fact, already be nudging at classic status not long after they finish production. This special group includes many cars with a sporty DNA or a reputation for great driving dynamics – enthusiasts’ cars, in short, such as the legendary Honda NSX or Ford Focus RS.

Then there are those cars that are produced in small numbers, as a special edition or for a short production run.

This group would include the Peugeot 306 GTI-6, a cooking version of the popular 306 hatchback. This car’s combination of great performance, fine handling and a limited production run guaranteed classic status almost before the last one had left the factory.

Another group of cars that tend to quickly graduate to classic status is the Japanese import class. Some pretty wonderful cars have come out of Japan in the past 60 years – everything from the perennially popular Subaru Impreza to the beautiful Datsun 240Z.

In particular, the Japanese car industry has brought us some of the most revered sports cars of modern times. These include the fearsomely quick MkIV Toyota Supra, as featured in The Fast and The Furious (and in our rundown of the best Japanese classics).

Then there are a select few revered, iconic cars, such as the breathtakingly beautiful Toyota 2000GT. That particular vehicle, of course, made a famous entry into the James Bond film canon.

Whether it’s cherished icons like these, or the more commonplace cars such as the Honda Civic or Nissan Bluebird, we’ve always loved Japanese cars here at Lancaster. Cars from Japan always tend to offer something enticingly different – whether that’s in the looks, the handling, or the superb noises coming from under the bonnet.

The 1990s were an obvious golden age for Japanese cars – including the likes of the NSX and MkIV Supra mentioned above. However, in reality Japan has been turning out wonderful cars ever since the 2000GT was unleashed on an astonished world back in 1967.

Japanese cars: not all created equal

Of course, many of these cars – such as the Datsun 240Z and Honda Civics – were either built in Britain or produced directly for the UK market. Others, though – so-called ‘grey imports’ – were imported from Japan.

These imported cars were built to Japanese regulations, so they have a slightly different set of characteristics and specifications.

Emissions, safety, security: all will be tackled slightly differently in these ‘grey imports’. The cars often handled slightly differently, which was often a key part of their appeal.

These differences did mean, though, that these cars needed their own, dedicated classic car insurance for Japanese imports.

Here at Lancaster Insurance, we’re very proud of our extensive contacts within the classic car insurance industry. That means that we’re able to arrange classic car insurance for Japanese imports of various types and vintages.

Your Japanese import may date from the 1960s or the 1990s, or from some time in between: in all cases, we will be able to arrange the insurance that you need.

Similarly, if your car is from a Japanese marque but rolled off the production line of a British factory, we can find you the cover to match.

In a moment, we’ll look in a little more detail at when a car becomes a classic. First, though, let’s take a bit of a detour and find out why these Japanese imports are so desirable to some classic car drivers.

Why would you bring a Japanese import into the UK?

There’s a wealth of classic Japanese cars already available here in the UK, and already built to comply with British driving regulations. So why might buyers have wanted to import a car from the Japanese domestic market?

Japanese domestic market (or ‘JDM’) cars typically had two key strings to their bow. For one thing, many of them were cheaper to purchase.

A famous example of this is the Mk1 Mazda MX-5 and its JDM equivalent, known as the Mazda Eunos (or Eunos Roadster). The latter was built for the Japanese home market, while the MX-5 was sold in countries around the world (and became a huge success, as we discuss in our history of this brilliant car).

Mechanically and in terms of specifications, the MX-5 and Eunos were very similar cars. Differences were few and far between – air conditioning was commoner on the Eunos, but that’s one of a handful of small differences.

Instead the choice, for UK buyers, was often a financial one. The Eunos was imported to the UK in fairly high numbers, because the car was often cheaper to buy than a domestic MX-5.

That means that now, some two or three decades on, plenty of the Mk1 MX-5 cars that you will find in the classifieds are actually ‘grey import’ Eunoses. And they may be slightly cheaper than equivalent MX-5s of the same specification, mileage and age.

However, buyers should remember that, while the purchase price may be lower, a Eunos will require dedicated classic car insurance for Japanese imports.

The second feather in many a JDM car’s cap was its different performance figures and safety features.

Japanese regulations are not the same as those in Britain. For example, the domestic Japanese market imposed fewer (or less stringent) safety and emissions regulations.

This means that many popular JDM cars are capable of higher performance – down to engines with a higher power output, or fewer safety features, or both.

These cars are often lighter in weight. When coupled with a higher power output, this often makes JDM cars excellent for racing and other high-speed pursuits such as drifting.

The mix of lightweight construction and powerful engines gives them excellent acceleration, handling, and braking.

All of this can make for a very engaging driving experience. If you’re thinking of taking your Japanese car on the track, make sure your classic car insurance for Japanese imports covers you. If you need additional , the team at Lancaster can help.

So, when does a car become a classic?

So far, we’ve been looking specifically at a group of classic cars. Now let’s take a look at the more general question of when a car makes that all-important jump into classic status.

There are two main things to consider here. One is the car itself, and the other is the way in which it is used and looked after.

For example, under its Benefit in Kind legislation, HMRC defines a ‘classic car’ as a vehicle that is both older than 15 years of age, and valued at £15,000 or more.

As you can imagine, that definition includes quite a lot of cars that might not be obvious classics. For example, by this definition, a well-maintained BMW Z4 or Alfa Romeo Brera from 2006 could now be entering classic status.

To us here at Lancaster Insurance, the question of whether or not a car can be defined as a classic is about the way it is used and maintained, as much as the car’s age.

Your car may be a mere five years old, but you may treat it like a classic (and thus be eligible for classic car insurance). What do we mean by this?

If your car is something that you cherish and do relatively few miles in, in our eyes that may qualify it as a classic.

After all, cars that are well looked after and do relatively low mileage run a lower risk of being involved in accidents and suffering damage. Insurers are usually able to reflect this fact with lower insurance premiums.

This can be true whether your car is a modern British classic, or something more exotic. If, for example, you’re driving one of the Japanese import classics we discussed above, you may be eligible for our specialist classic car insurance for Japanese imports.

On top of this, some insurers will also offer additional limited mileage discounts for those drivers who cover significantly lower mileages in their classic. If, for example, you only take your classic out for special occasions and classic car events, you may well be offered a lower premium.

At Lancaster, we offer discounts for lower mileage drivers. We also include cover for any accidental damage that your car might sustain at a classic car meet.

Of course, some classics might not even be getting out on the road at all. You might be restoring or repairing a vintage car, for example, meaning that it will be garaged for a significant amount of time.

You may keep the car in a garage throughout the winter months, to protect it from the worst that the British weather can throw at it. You might even have a classic that is registered with a SORN, or Statutory Off Road Notification.

This means that – for the time being at least – it’s not going out on the road at all. However, there are still risks – theft, for example, or damage from any small animals sharing the garage!

Here at Lancaster, we’ll provide tailored insurance for these periods when a car is not going out on the road.

If you are about to embark on a restoration project, read all about SORN, and why you still need to insure a car that’s off the road.

How do you value a classic car for insurance purposes?

Have you found it difficult to get a precise valuation for your classic? If so, you may be interested in the Two Year Agreed Valuation that we offer as part of our classic car insurance packages here at Lancaster.

This feature – one of a number of benefits that we offer to classic car owners – is an independent estimation of your classic’s value and can help you prove its worth in the event of an accident or when you come to sell.

This valuation will be made by a classic car expert, so you can relax in the knowledge that your car has been given a fair and accurate valuation. Then, if anything ever happens to the vehicle – if it is stolen or written off, for example – you will be reimbursed by the correct amount.

Find out more about our Two Year Agreed Valuation now.

Are all classic cars MOT and road tax exempt?

You might think that all classics will be exempt from MOT and road tax. However, this is not necessarily true.

That’s because, as we’ve seen, relatively young cars can be classed as classics if they are looked after in a certain way. By contrast, the point at which cars become exempt from road tax is a fixed one.

Tax exemption is based on a rolling 40-year measure. That means that, from 1st April of any given year, any cars that were made more than 40 years ago become exempt from road tax.

So, for example, on 1st April 2022, all cars made before 1st January 1982 became tax-exempt. That’s because, once they reach this age, cars are looked on as ‘historic vehicles’.

The tax relief is designed as an incentive for owners to keep looking after these wonderful examples of our motoring heritage.

It's worth noting here that, even though you don’t have to pay any tax, you still have to tax your car. It’s just that the rate of tax is now zero.

We go into much more detail on the 40-year rule, and look at some early 1980s classics that are now starting to qualify, in our article on tax exemption.

Conveniently, at exactly the same moment that they become exempt from paying tax, older vehicles also stop needing an annual MOT. If your vehicle is 40 years old or older, and has undergone no ‘substantial changes’ in the last 30 years, you are no longer obliged to send it in for its annual MOT examination. But we would advise that you still do, just to make sure any car you’re running is safe and roadworthy.

What would come under the heading of ‘substantial changes’? These would be any modifications that fundamentally change the behaviour of the car’s main components.

This includes changes to the chassis, body, axles or engine – effectively, alterations that affect the way the car drives.

3 cars on their way to modern classic status

We love modern classics here at Lancaster. Whether they’re from the UK, Japan, Germany or anywhere around the world, we can help you find the cover you need.

With that in mind, let’s look at three cars from the very early years of the millennium that could be nudging at classic car status right about now.

You’ll find more like these in our piece on future classics from the 2000s.

1. Toyota Celica T230 (1999-2006)

When Japanese future classics are discussed, the Mazda MX-5 and Honda S2000 always seem to get a mention. And rightly so.

The final generation of Toyota’s Celica, however, is just as deserving of future classic status. Sharp-looking, the last Celica was also very reliable – in the best Toyota tradition.

It also handled like a dream – in fact, it’s probably one of the best-handling front wheel drive cars out there. And there’s a UK Celica owners' club where you’ll be able to access a wealth of expertise and advice from fellow Celica owners.

There’s also a JDM version available, with slightly increased engine power output. If you’re tempted by one of these, don’t forget to arrange some dedicated classic car insurance for Japanese imports.

Remember that if you own a Japanese sports car that you want to take out on the track, Lancaster can help arrange dedicated track day insurance, too. Make sure your Evo, Supra or Skyline is covered by the specialists.

2. Ford Focus Mk1 (1998-2005)

It really wasn’t at all long ago that the Mk1 Focus was one of the most familiar cars on our roads.

Even today, the sight of a first-gen Focus is hardly likely to set the pulse racing. So is this once-ubiquitous workhorse really in line for classic status?

We think so. When it appeared back in 1998, the first Focus was leagues ahead of the competition, in terms both of the way it looked and the way it drove.

Those sharp looks still hold up well today. Meanwhile, with family hatchbacks getting ever heavier, the car’s light weight and nimble handling are likely to be prized more and more as the years go by.

Buyers seeking a properly thrilling drive should look out for an ST or RS model.

3. Range Rover Mk3 (2001-2012)

There’s little doubt in anyone’s mind that the very first Range Rover, of 1969 onwards, is now a stone-cold classic. Will the same case soon be made for the Mk3 of 2001?

Yes, there’s plenty to recommend the Mk3 Rangie for classic status. It’s a very good-looking beast, for one thing.

It’s also the moment when the Range Rover dynasty went unmistakably upmarket. The third-gen car was also very popular, meaning that you’ll have no trouble finding one on the used market.

Then you can just sit back and wait for that classic status to be bestowed – and (hopefully) for your Rangie’s values to rise accordingly.

Classic car insurance for Japanese imports – and all other classics besides

Whatever classic you own or are hankering after – whether it’s a ‘grey import’ Japanese car, a handsome E-Type or a cute and affordable Morris Minor – we will be able to provide the classic car insurance or dedicated classic car insurance for Japanese imports you need.

Our insurance policies come with a wealth of benefits including:

• Car Club member discounts
• Static Show and Historic Rally Cover
• Choice of repairer
• Two Year Agreed Valuation
• Laid Up Cover Available
• 24 Hour Claims Helpline
• Limit Mileage Discounts
• UK Based Call Centre

Why not get a classic car insurance quote from us today?