How is Classic Car Insurance Calculated?

Owning a classic car is something a lot of people take great pleasure in. Those who do own classic cars often keep them locked in a garage as they are mostly for show and something to maintain and modify. However this isn’t always the case and those who like to drive their vintage car will have the same risks as other road users. The best way to protect your car from these risks is to get a classic car insurance policy. Classic car insurance differs from regular car insurance as it is tailored specifically for the unique nature of a classic car. By the end of this article you should have a better understanding of how the cost of classic car insurance is calculated as well as how to find insurance providers who offer classic car insurance.

How is Cost Calculated?

There are a number of factors that are taken into account when calculating the cost of a classic car insurance policy. The value of the vehicle is a big one and for this reason many people opt to have an agreed value policy. What this means is that both you and your insurance provider agree on the value of your car so that if you need to make a claim there is no dispute on the amount paid to you.

In addition to the value of your car, the risks present are also taken into account. If you drive your car regularly then it is going to be at more risk of breaking down and of being stolen. Most people who own classic cars will have them securely parked in a locked garage. This is a big bonus and will certainly affect the price of your policy.

Types of Cover

Since each classic car is unique so is each policy and most will be specifically tailored towards the owner’s requirements. There are a few different types of cover that you can usually find in a classic car policy. Below are three of the main ones –

1)      Agreed Valuation – As discussed above this gives the owner the security of knowing that should something happen to their car, they will receive its full value in the way of compensation.

2)      Limited Mileage Insurance – many of those who own classic cars do not use it as their first car for day-to-day driving, viewing it as more of a luxury. This means that often their annual mileage is much lower than it is for their regular car. Many insurance providers will offer policies that cover a classic car when it falls under a certain annual mileage usage. This can be a great way to save money on your policy.

3)      Multi Vehicle Insurance – A lot of classic car owners have more than one vehicle and would like to get them insured under the same policy. This is possible by using fleet insurance and often works out much cheaper than insuring vehicles separately.