Newbies Guide to Classic Car Insurance PDF Print E-mail
Written by Ryan Parker   
Monday, 11 January 2010 15:32
The idea of owning a classic car is always different to the actual fact of owning a classic car. In reality taking ownership of an older car can be quite a taxing task. This is especially so if you want to keep it in top condition and use it like a car should be used. There will be many joys in the ownership experience but there will probably be more negative emotions. Owning classic cars isn't easy, they require quite a bit of time and money to maintain. One of the many stresses that newbies face with owning a classic car is that car insurance will be quite hard to obtain. Below we will look at some ways we can get car insurance for your classic car and get it cheap.
by RyanParker


The idea of owning a classic car is always different to the actual fact of owning a classic car. In reality taking ownership of an older car can be quite a taxing task. This is especially so if you want to keep it in top condition and use it like a car should be used. There will be many joys in the ownership experience but there will probably be more negative emotions. Owning classic cars isn't easy, they require quite a bit of time and money to maintain. One of the many stresses that newbies face with owning a classic car is that car insurance will be quite hard to obtain. Below we will look at some ways we can get car insurance for your classic car and get it cheap.

The first thing to understand with classical cars is how insurers value cars. The model that modern insurance companies use to value cars is based on the prevailing market value of the car and also its economic value to the user. This is almost the complete opposite to how owners of classic cars value their cars. Classic car owners value their car based on emotive attachment and have almost nothing to do with economics and usability in mind. It is very much an emotional choice rather than a practical one. The way a classic car is valued is very much subject to how the owner feels about the car. This is one of the main reasons why normal car insurance companies normally turn down insurance for cars that are considered classics or vintage

Prospective classic car insurance users should also understand the concept of agreed value and market value. Most classic car insurance products are based on agreed value while most normal car insurance products are based on market value. This is the defining factor that addresses the differences in normal valuation models as described earlier. With agreed value, you come up with the number that you think is right to value your ride. With market value, the insurance company will come up with the figure and will check the market again if you make a claim. Straight away you should recognize that market value policies are rather dangerous for classic car owners. It is up to the insurance company to determine how much your car is worth. It is almost the job description of the insurance adjuster to value your claim down to an unacceptable value.

Newbies should also understand that car insurance for classic cars is quite different to normal cars. Classic cars are generally memorabilia items and are kept for emotive reasons. The insurance model for classic cars is very similar to insurance models for paintings, one-off pieces of art and anything that is collectable. Applying normal car insurance to classic cars is a mismatch and should not be done. A classic car insurance policy is very much a custom policy that is specifically made to match the needs of the car and the user. In most instances, there are no two classic car insurance policies that are alike as most users have different ideas on how to use their classic cars. The sheer customizability of classic car insurance is another reason that normal car insurance companies don't take up classic cars. Most of the time it is just too much hassle to customize all policies for such a small market.

With classic car insurance it is very unlikely that you will ever come across a "off-the-shelf" car insurance package like you would normally find with standard comprehensive car insurance policies. With classic cars there can't be a "one size fits all" policy that is suitable for every classic car owner. This is plainly because the needs of classic car owners can vary greatly. As an example, there are owners that pride themselves in using their classic cars everyday as a daily driver while there are those who would rather make their classic car into the "perfect" example and cart it around in a trailer from show to show. Some owners are backyard mechanics and can't help but to pull apart and reassemble their cars. As you can imagine, the insurance requirements for each of these owners is very different.

One the same note of lowering your classic car insurance costs, most new owners normally miss one of the most vast collection of good advice and tips and tricks about both your car and your insurance. Most don't think of ever contacting other classic car owners that may have been doing this for many years. These people would probably have had all the classic car insurance problems before and have very valuable tips and tricks you can use to get your car insurance. You can find these owners through clubs or even on vintage rallies and meets. They would generally be more than happy to relate their ownership experience with you and share any useful bits of information.

Another option to consider is to look at restricting the miles that you travel to decrease the cost of your car insurance premium. This is particularly useful for classic cars as most owners don't put on massive amounts of miles per year anyway. The difference between a restricted travel car insurance and a free travel car insurance could be quite high especially for a classic car.

As mentioned earlier, insuring a classic car is very similar to insuring a "one of a kind" item or a piece of artwork. The insurance company will look into security measures used very carefully. Most companies that deal with classic car insurance will even have specific security firms that they recommend for car security and storage security. If you use the services of these security companies then the insurance company will normally offer a discount on your car insurance policy.

These are just some of the tips that we think will be useful for those who are approaching classic car insurance for the first time. Although it is quite different to normal car insurance products, once you get the hang of it, it will be very easy to comprehend. Once again we can't state how important it is to contact other people who share the same classic car as you and ask for their advice. The path to owning and maintaining a classic car isn't a simple one however with the right tools and knowledge it can be a very joyous hobby. Make sure that you enjoy your classic car with the right car insurance plan.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Ryan Parker is a car insurance professional that has been in the industry for a good 10 years. Find tips and tricks that you can use for your classic car insurance products at http://www.insurancerelease.com.