When Should You Use Classic Car Insurance

Published: August 30, 2015

Updated: May 15, 2018



If you own a vehicle that is defined as a classic or an antique then opting for classic car insurance may seem like a no-brainer. Certainly, there are a lot of benefits to taking out classic specific coverage, but there also some major restrictions for some drivers. So, is it ever ok to ignore classic car insurance in favor of a regular personal policy? Here we are going to weigh up the pros and cons.

Classic car insurance covers me completely?

This is totally true as classic car insurance covers for the increased cost of a car that holds its cost in a way a normal daily driver does not. Classic cars come with agreed value coverage (AVC), which means you agree with your insurer the value of the vehicle pre-policy. In the event of loss or write-off the insurer will pay-out the full previously stated value of the car. This coverage takes into account the fact that classic and antique cars do not depreciate in the same way as daily drivers.

It really is a no-brainer then?

Well, if you want to cover the total cost of your vehicle in the event of an accident then yes and to some classic owners doing just that is essential.

What are the issues with classic car insurance?

Cost may be prohibitive to some as almost all dedicated classic or antique car insurance is expensive, and usually has much higher average premiums than normal coverage. This may be a necessary compromise if the vehicle to be insured is worth a lot, but it is still something to consider while shopping for a policy.

Another potential stumbling block for drivers is the limitations of a classic car insurance policy. Insurers have a long list of requirements that classic car owners must fulfill before they are eligible for a policy. Limited pleasure use is often a stipulation, meaning the driver can only use the car for limited pleasure driving (the cliché Sunday drive) or to use in exhibitions and parades. Other caveats range from needing a dedicated storage device (garage, parking space), and proof of maintenance and/or storage.

A classic car insurer will also demand that you have a daily driver with your own insurance policy.

Is using a normal car insurance policy possible with a classic car?

Yes is the quick answer. Some drivers want to use their classic or antique vehicles on a more consistent basis, something the AVC policy of classic car insurance does not allow. In this instance normal coverage may be necessary as you will be able to use your car when you want and essentially make it your daily driver.

Sounds good, what’s the catch?

You will certainly get a lower premium than opting for a dedicated service, but then you will also lose some of the benefits. Chief among them the agreed value coverage that protects your car up to its actual value. Normal car insurance operates on ACV, which means actual cash value, meaning the will pay out to the value of the car at the time of an accident and not from a pre-agreed value.

This is not a good thing as companies account depreciation and other factors, so you are almost guaranteed to get a payout that is significantly below the value of your car.