Is classic car insurance cheaper?

26 November 2018

When looking for the perfect car for your needs, you might not need something flashy or overly complicated. A classic car provides an ideal means of getting anyone from point A to point B and is the sort of vehicle that can keep you safe and comfortable on the road, instead of garnering speed and potentially leading to an accident.

For a classic car, you might expect insurance to come at a cheaper cost than cover for the fancier models of hybrids and modified cars. However, remember that this depends on your car as well as your own personal situation as the main registered driver. Here are some things to consider when deciding what the cheapest option is for your car insurance.

Closeup classic Ford

What makes alternative cars so expensive in comparison to classic models?

Looking at a classic car, you may notice that some similarities between models; think a bulky frame, a wide steering wheel, medium sized tires and a simple paint job. Factories purposefully design these cars to be similar to ensure their safety complies with the rules of the road, meaning that insurers can easily refer to these vehicles in estimating insurance prices.

However, when it comes to a hybrid car or a car that has been modified to increase its performance or aesthetic quality, there comes more risk. These parts have been individually made and may require more services to fix them.

In some cases, taking these cars to a garage when they break down can be a fruitless task, as they can be so heavily altered that an experienced mechanic may not know how to even find the problematic area. This amount of risk can stand out to insurers and make them raise insurance premiums on the models to ensure that any accidents are fully covered if they occur.

With their shiny outer appearances and high value on the market, these sorts of cars can pose potential risks of thieves stealing the vehicles, robbing the interiors or even simply vandalising the cars out of spite.

However, classic cars may not be so vulnerable to this issue due to their ordinary appearances. Therefore the insurance on them may be less than what their hybrid counterparts may incur. There is less risk of them being stolen and, thus, the car can be relatively cheap to replace.

Specialist insurance

Compared to classic cars, alternative cars may make it much harder for you to locate insurers who are willing to take the risk of insuring a specialised vehicle.

Hence, you may need to look into more specialised policies - rather than simply buying into a standard policy - that can cover any potential electricity costs or individualised parts of their car, such as aesthetic additions or the catalytic converters.

Whether you opt for modified car insurance, black box insurance, sports car insurance or anything else that you might not usually consider sourcing for a classic model of car, this insurance will likely cost more money, as it will need to cover all the additions that have been made to the vehicle.

Is it really cheaper to get a standard vehicle?

Although the insurance policies on a standard car can be much cheaper than obtaining a policy for a hybrid, it has been said that, as the hybrid runs on electricity instead of petrol or diesel, it can make up for its costs by nearly £,2000 in fuel savings.

A hybrid vehicle can not only save on fuel costs but also help the environment due to the car's catalytic converters and the lack of fossil fuels involved in its interior design.

A major problem facing the younger generation

Collecting classic car insurance quotes is a good way to ensure that you get the necessary value for your money, with some insurances costing £100 or less to help maintain a vehicle. However, watch out for additional costs that may ultimately put a pretty hefty price tag on your car insurance.

If you are under 25, you may experience a higher insurance premium on your car than someone who is much older than you. For some young drivers, insurance premiums can hit £1,000. Why is this?

It is because the insurance seller does not yet have enough information about your driving behaviour to be confident that you will not have an accident or not break some road rules and regulations due to a lack of driving experience.

They may also see the youth as more likely targets to have their car stolen due to negligence or misfortune. For instance, do you keep your car in a garage at night? If not, then this can make it a target for it to be stolen. This is why your car insurance may cost a lot more than you realise.

If you are young and want to avoid some costly insurance problems, why not consider enrolling on the Pass Plus scheme, where you can spend time on extra driving lessons to help ensure that you are as safe as possible on the road? Insurers have been known to knock off around £180 on insurance for people who have passed the Pass Plus scheme.

In regards to the vehicle's safety, if you do not have a garage in which to place your car in during the night, why not consider fitting a tracker into your car? This means that, if your car is stolen, you can then locate it and involve the authorities to have it returned to you all in the same night.

Is your car really a classic?

Your car may look old to you, but have you ever considered that your model of car may be more of a relic than you think? If a car is older than the 1960s then, under the MOT Historic Vehicle Exemption rules, then it does not need to pay tax or MOT costs. However, if it proves not to be roadworthy, then this may make the insurance costs skyrocket. This counts for any older vehicle.

Damage to an older vehicle may require repairs to certain parts that can no longer be obtained because they are no longer on the market. Older parts may also lead to the car becoming involved in an accident on the road, such as through an oil or brake fluid link. Due to this, your insurance premiums may rise unless the vehicle is upgraded.

How far do you drive?

Your insurance company will also consider how much you actually drive the car and its potential mileage. If you need to commute a long distance and carpool with any colleagues, this could provide more risk to an insurer.

They may agree to a certain amount of mileage per day in order to maintain the health of your vehicle. However, going beyond the limit may either raise the premiums or invalidate the insurance, as the insurance can only cover so much on the road if you are currently under that sort of policy.

These sorts of commutes can lead a company to also consider your job or actual family life in regards to your insurance. If your job is deemed as a “stressful” or “demanding”, this could result in higher premiums due to the likelier chance that you could actually be involved in an accident.

Some insurers have moved to the point of raising the insurance of busy commuting parents. Although this does seem a little strange, if you are a parent who has just been dealing with a tantrum, you may not be the safest of drivers on the road - even in a standard vehicle.

Your Insurance has been personalised

Keep in mind that, while low performance may be due to the car’s manufacturer, your insurance policy is also influenced by your history as a driver. Your car may adhere to standard insurance - but, if you have had any accidents previously or damaged your vehicle on the road, your insurer may be forced to raise the cost of your premium.

Be sure to talk to them and be honest about your situation so that a deal can be forged between you and the insurer to ensure you can get the best insurance for your car. If you do not like their offer, then be sure to check out different insurers and compare their offers. That way, you can always benefit from the cheapest deal.

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