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Classic Car Insurance
Classic car insurance is a specialised insurance sector and most mainstream motor insurance companies look to do their business in the mainstream sector. This is because 'standard' vehicles and 'standard' customers offer the least risk and the least effort, ensuring that overheads are kept low and therefore profits are kept high. Due to this, many motorists looking for specialist cover are often disappointed with the mainstream offering and many frequently just cannot find the right cover from the mainstream market. So, for those wanting to insure a performance, classic or commercial vehicle, specialist providers are often the way to go. Find specialist bespoke cover for your special vehicle.
Drivers of classic vehicles certainly fall into the specialist category that find it difficult to get the right cover from the mainstream insurance market. Many of their requirements are simply not covered by the bulk of the market.
Classic vehicles, by their nature, are usually expensive and at higher risk of fault due to their age. They also do not have the modern driver assist technologies that make safe driving easier. These are characteristics that mainstream insurers do not like. They represent higher risk, as classic vehicles are usually more expensive to repair, and are potentially more prone to being involved in accidents, representing a higher financial risk to insurers.
Dedicated classic car insurers will be able to offer the necessary coverage without breaking the bank. They can employ their specialist knowledge and industry insight to manage risk and therefore produce affordable coverage in a way that the mainstream cannot. Check out classic car insurance specialists.
Insurers generally say that classic cars are classed as being over 15 years old and are for low mileage recreational use. Therefore, to qualify for most classic car insurance policies, cars will have to meet set age and maximum mileage requirements (usually 7,500 miles). One other unique aspect of classic car insurance is the 'agreed valuation' clause. While standard insurance policies will only pay the going market rate for a vehicle if it is determined to be economically irreparable after an accident, this facility with classic car insurance providers ensures that the policyholder receives the value agreed at the start of the policy. Unique to this insurance type, the agreed valuation enables classic car owners to safeguard the value of their investment.
When taking out classic car insurance, you must decide what level of cover to get. As vehicles in this specialist sector tend to be expensive and of high value to their owners, many specialist providers will only offer comprehensive cover. However, some can also provide third party and third party, fire and theft.
The basic level of cover is third party only. This is the minimum required by UK law and it is the cheapest because it exposes the insurance company to the lowest potential expense, as it only covers the cost of repairs for the other party's vehicle if the accident is your fault. Third party, fire and theft is slightly more expensive as it also covers your vehicle against the financial cost of fire or theft of your vehicle. Meanwhile, comprehensive insurance will pay for repairs to your own vehicle if the accident was your fault.
Once you have selected the level of classic car insurance cover you require, it is worthwhile exploring the other benefits on offer from classic car insurance specialists. Unlike most of the inflexible mainstream, specialists can offer further premium reductions through applying their specialist understanding of the classic car sector. For example, many classic car drivers are enthusiasts who are members of driving clubs. Many classic car insurance providers offer extra discounts to club members. Furthermore, as classic vehicles are often only used for recreation, entering into low mileage insurance schemes can reduce premiums. Premiums can also be discounted by adding additional security devises and by the owners ensuring that their classic vehicle has a strong maintenance history. These measures reduce the risk of theft and accidents, so reducing the insurance company's exposure.
So, in conclusion, drivers of classic cars should check out specialist classic car insurance because it offers flexibility, personalised coverage, specialist discount opportunities and, in some cases, coverage when there is no alternative.