Car enthusiasts: How to get insurance for your classic or vintage car

Car enthusiasts are a passionate bunch. They live and breathe anything to do with cars. If that’s you, then you’ve most likely invested in a car or car collection, or restored a cherished vehicle. When it comes to protecting your prized vehicle, you may find that a regular comprehensive car insurance policy might not be the best fit.

What is a classic car?

Generally speaking, a classic car is not your everyday vehicle but one you use for special occasions, weekend trips or at car shows. They also tend to be older cars. However, some modern cars can be considered classic, due to their rarity, design, historical and cultural significance and performance capabilities. Modified vehicles, on the other hand, are typically considered to be different, for insurance purposes, to a classic car.

There is no single definition of a classic car that everyone agrees on, so the exact level of cover available comes down to what an insurance provider deems appropriate for the car.

Shannons, part of the Suncorp Group, describes itself as one of the leading insurance providers for motoring enthusiasts in Australia. It provides classic, vintage and modified car insurance, while also running auctions and a club for car enthusiasts.

Shannons sorts its clients’ cars into three categories:

• Classic (for cars older than 30 years)
• Emerging classic (for cars made 15 to 30 years ago)
• Modern (for cars made in the last 15 years)

Another insurer, NRMA, also provides classic car insurance. They determine their classifications in the following way:

• Veteran cars are those made before 1919
• Vintage cars were made between 1919 and 1930
• Classic cars of 15 years of age

What type of classic car insurance cover is available?

Not every car insurer provides classic or vintage car insurance. The type of cover available from each insurer will be detailed in their product disclosure statement (PDS) as part of any insurance policy. It’s important you read this document carefully to see what is and isn’t covered, and what conditions of use may apply.

A standard insurance policy with add ons may give you the desired cover, but classic car insurance, on the other hand, often comes with specialised options, such as:

Agreed value of your car — something between you and your insurer

Unlike most car insurance policies, where market value cover is more common, insurance for classic cars tends to be for an agreed value determined between the policyholder and the insurer. The condition of the vehicle, its rarity and its desirability, should all be considered when doing so. Insurers will often ask for photos or for the car itself to be brought in for inspection, when negotiating its agreed value.

Limited use options and laid-up cover — how often do you use your car?

Many classic car insurance policies offer reduced premiums while a car is off the road being restored. This is known as laid up cover, and it is another way to reduce your premiums due to its limited use at the time. This means if you only drive your car on the weekends or on special occasions, you may be entitled to a reduced rate.

Choice of repairer — you get to choose

Most classic car insurance policies allow you to choose which repairer or mechanic fixes the damage to your car. This is beneficial, as many classic car owners already know trusted and experienced repairers.

Multi-vehicle discounts — more than one classic car

Classic car enthusiasts often have more than one prized vehicle, with some saying that they tend to multiply on their own inside a garage. As a result, many policies designed to cover classic cars included discounts on premiums for each classic car insured under a multi-vehicle policy.

Salvage rights — what happens if the car is written off?

In the unfortunate case that your classic car is written off in a collision, most policies provide a feature called salvage rights. This allows you to keep the unrepaired vehicle at no cost, retaining its functioning parts, which are often costly. It is worth checking your policies’ PDS to see if your vehicle would fall under this cover, as sometimes vehicle age restrictions apply.

How much does classic car insurance cost?

Classic and vintage car insurance policies often vary in price between providers, because of differing driver situations and needs. The factors that influence how much you pay in premiums can include:

• Your car’s agreed value (determined by you and your insurance provider)
• How regularly you drive your car
• Where your car is stored at night
• Your car’s make and model, its age and total kilometres done (obtained from an odometer reading)
• Your personal insurance claim history
• Where you live
• How long you’ve held your licence for

How can you negotiate a good deal on a classic car policy?

“Good deals are always possible and club members are often the first to spread the news to each other. The strength of the movement is such that if anyone does get a good or raw deal then it will be spoken about at club meetings”, said Neil Athorn of the Australian Historic Motoring Federation.

Brian Garrett, president of the Classic and Historic Automobile Club of Australia, agreed, saying that it’s a good idea to shop around, even though your options may be limited. “Word of mouth is the main source of information on good deals, followed by a ring around to insurance companies,” he told Canstar.

How much is your classic car worth?

Popular classic cars may be easier to value than rarer ones. In fact, Enthusiast Motor Insurance, another classic car insurance provider, stresses to all its clients that they do not value cars. Instead, they come to an agreed value that they and the client are comfortable with covering the vehicle for.

Mr. Garrett from the  Classic and Historic Automobile Club of Australia, follows on from this to say that “most classic car owners follow values fairly closely. The owner can suggest a value and the insurance company will either accept that value or reject it. Sometimes they may want to see the vehicle before insuring it.”

It’s also important to keep up-to-date records of your classic car to help you when negotiating an agreed value with your insurer. Graeme Adams, vice president of the Roadrunner Car Club, agrees, “In all cases when establishing a value, have photos, documentation of any recent restorations, component reconditioning, and/or new parts, trim, or tyres. It’s also good, when entering into an initial insurance policy, to take the vehicle to the insurer’s assessment centre and update and keep records on an annual basis.”

With classic cars their value often goes up (not like your typical everyday vehicle which value goes down), so when renewing a policy it needs to reflect that change in value.

Does how much you drive your classic car affect your policy?

The more your classic car is used and the more kilometres it travels, the greater the potential risk of any accident or damage. There is often a difference in pricing of a classic car policy for a car driven every day, as opposed to one used occasionally. Some providers may even include kilometre limits in their policies and require regular odometer checks to make sure you don’t exceed your allocated distance. There will also often be a difference in pricing in relation to where a car is stored, the age of the driver and any driver restrictions.

At the end of the day, you’ve probably bought your classic car because you want to take it out on the open road, or show it off at events. Heightened insurance premiums shouldn’t deter you from its usage, as occasional trips in your car can help avoid oil leaks and binding clutches and brakes.

Compare Car Insurance Policies

Cover image source: topseller/Shutterstock.com