Classic car insurance

For classic car insurance, agreed value is the amount your car insurer will agree to pay you if your classic car is written off after a crash.

Agreed value is a good example of your insurer recognising the money you’ve put into your classic car, rather than just the price it sells for. This can give you the peace of mind that if the worst happens and your classic car is written off, your insurer’s pay-out should match, or at least come close to the money you spent on it.

To get an agreed value, you let your insurer know what your classic car is worth, your insurer agrees (or gives you an alternative amount) and that will then be the money you receive if your car suffers serious damage.

You can get classic car insurance for under 25s, but there may be restrictions on the type of classic car you can drive, as well as how and where you drive it. Most insurers will only agree to insure you after you’ve had your license for at least 12 months. But if you’re a classic car enthusiast aged between 18 and 24, you may find you can insure a vintage vehicle for less than you’d pay to insure a modern car.

Classic car insurers often see modifications as an additional risk, and chance of being insured.

Insurers often see modifications to your vehicle as a higher chance of you needing to claim. Even something like a high-quality re-spray to your car is considered a modification, as it may attract thieves. If you’re looking for modified car insurance, make sure you always notify your insurer of any modifications to your vehicle.

If you’re looking to use your classic car for business purposes, make sure you notify your insurer. If you haven’t let them know that you’re using your classic car for work, you may be driving uninsured. To use your classic car for business, you may need to pay an additional premium, as your car will be used regularly instead of for leisure only, which will affect the car’s mileage and risk-factor.

Classic cars that were built over 40 years ago are now exempt from needing a MOT, unless you volunteer to have your car checked. But do bear in mind this exception only applies if your vehicle hasn’t had ‘substantial changes’ made to it in the last 30 years. This can include replacing the body, engine or axles of your classic car, which changes the way your vehicle works.

Buying a classic car comes with many benefits, from its character to the driving experience. Here’s some of the key benefits of buying a classic car:

• Style: Classic cars stand out on the road and are admired by many. Many vintage cars weren’t mass produced like modern cars are, which means they’re harder to come by
• Driving experience: Driving a classic car is considered a different experience to driving your standard, modern vehicle. Classic cars don’t come with the technology we’re used to today (ABS braking or power steering), so you’ll need to be more aware and in control of your car when you’re on the road. With this in mind, it’s said that driving a classic car can make you a better driver
• Cheaper insurance: Insurers know that classic cars are often used for leisure, so they’re usually associated with a lower risk level. This means your classic car insurance is likely to be cheaper than standard car insurance
• No car tax: If your classic car was built over 40 years ago, you’ll be exempt from Vehicle Excise Duty (VED), also known as car or road tax

Your insurer will decide if your car qualifies as a 'classic', as the definition can sometimes vary. Whether you need a specialist policy for your classic car may depend on how often you use your car, rather than its age or model.

The car insurance extras you may need will depend on how often you drive your vehicle. Breakdown cover may be included as standard, but if not, you may have to pay a little extra. You may not need personal belongings cover for your classic car, especially if you only drive your vehicle occasionally.

Joining a classic car club comes with various benefits, from finding a new hobby to insurance discounts:

• Insurance discounts: Classic car clubs are a great indicator to your insurer that you take good care of your vehicle and are more likely to practice safe driving.
• Connections: Joining a car club means getting to meet other classic car enthusiasts. With this, you can get technical car advice and find where to buy car parts!
• Valuations: Some car clubs can help you value your car or help out if you’re looking to buy or sell a classic car.
• Vehicle verification: If your vehicle has been off-road for a while and has no Logbook, some car clubs can help you restore an original registration to your vehicle if it’s been removed before.

You work hard to earn your money, and we don’t think you should waste a penny of it paying over the odds on your household bills. That’s why at MoneySuperMarket, we’re on a mission to save Britain money.

• Whip your credit score into shape with Credit Monitor
• Super save over and over again with Energy Monitor
• There are always more ways to save with MoneySuperMarket 

So how do we make our money? In a nutshell, when you use us to buy something, we get a reward from the company you’re buying from.

You might be wondering if we work with all the companies in the market, or if our commercial relationships with our partners might make us feature one company above another. We’ve got nothing to hide, and we want to give you clear answers when it comes to questions like these, so we’ve pulled together everything you need to know on this page.