Classic car insurance

Agreed value is the fixed amount your insurer will pay if your classic car is written off or stolen. This figure is set when you take out the policy and is agreed by both you and the insurer.

To set an agreed value, insurers will usually ask for evidence such as recent photographs of the car, a professional valuation, and details of restoration work or modifications. This helps them confirm the car’s condition and true worth.

Unlike market value policies, agreed value cover recognises that classic cars can be difficult to price accurately. To avoid underinsurance, it’s a good idea to review and update the agreed value regularly, especially after restoration work or if the car’s value changes.

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.

No. Classic car insurance is usually designed for limited leisure use rather than regular commuting or everyday driving. Most policies restrict use to social, domestic and pleasure journeys, and many exclude commuting altogether.

Insurers often also set annual mileage limits, which are typically much lower than standard car insurance. Policies may also require you to have another vehicle insured as your main car.

If you need to drive your vehicle regularly or commute, a standard car insurance policy or a specialist classic car policy with higher mileage and commuting cover is likely to be more suitable.

You can, but only if your insurer agrees and adds the right cover to your policy. Business use usually includes commuting to a regular place of work and using the car for paid activities, such as hiring it out for weddings or events.

Because this type of use increases risk, insurers often charge extra or apply specific conditions. Not all classic car policies will allow business use at all.

You must tell your insurer how you plan to use the car. If you use your classic car for work or hire without disclosing it, your cover could be invalid and you may not be paid if you make a claim.

Yes, but modifications can affect both your premium and how your car is insured. Insurers often see modified vehicles as higher risk, which can increase the cost of cover. Declared modifications can also change your car’s agreed value, particularly if they increase its overall worth.

You must tell your insurer about any modifications, including cosmetic changes such as resprays, interior upgrades or non-standard parts. Insurers may then ask you for photographs, receipts or details of the work carried out.

If you don’t disclose car modifications, your cover could be invalid and you may not be paid if you make a claim.

Generally, modifications will increase the cost of your insurance.

However, it depends on the modification as there is a wide range of changes that count - everything from an electric conversion of your classic car, which will push up your premium to fitting parking sensors, which is more likely to lower your premium.  

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 practise 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 log book, some car clubs can help you restore an original registration to your vehicle if it’s been removed before.

A car is generally considered a classic because of its age, condition and historical interest, but there is no single definition that applies in every situation. Outside the UK, such as in the US or the European Union, there may be different definitions of a classic car.  

• For road tax purposes, a car is classed as a historic vehicle once it is 40 years old. At that point it can be exempt from vehicle excise duty (VED), which is why this age is often used as a rough guide.

• For HMRC purposes, a classic car is usually defined as being at least 15 years old and worth £15,000 or more. This definition is mainly relevant for capital gains tax and does not determine how the car is insured.

• For insurance purposes, each insurer sets its own criteria. Some may accept cars from 15 years old, while others use 20, 25 or additional conditions such as limited mileage, originality or usage.

Because definitions vary, it’s best to check your insurer’s specific criteria rather than relying on a single age threshold.

Insurers usually have set criteria for a classic car, including: 

• Age - typically your classic car must be at least 15 years old but some insurers may stipulate 20 or 25 years 

• Condition - your classic car should be well-maintained and in good condition 

• Secure storage - you’ll usually need to keep your classic car in a locked garage 

• Mileage - you’ll often be expected to do low mileage and the insurer may set a mileage cap, such as 5,000 miles 

• Use - you’ll usually be expected to use your classic car as a second car rather than for daily driving 

• Veteran: Any vehicle built before World War One (before 1914) 

• Vintage: Any vehicle built before 1930 

• Post-vintage: Any vehicle built between 1930 and 1945 

More modern cars can be considered ‘future classic cars’, usually because they have: 

• Limited production numbers 

• A distinctive design 

• Performance pedigree 

• An enthusiast following  

For example, earlier versions of the sports car the Porsche 911, which was first launched in 1963, are already considered classic cars and the latest iterations are likely to follow suit due to the 911’s heritage and timeless design.  

Some insurers already treat these kinds of vehicles differently by offering a higher agreed value or specialist policies, and if you own a future classic you might benefit from taking extra precautions to protect its value.