Introduction
Classic cars occupy a special place in the UK motoring landscape. They are rolling history, weekend projects, and often cherished heirlooms that connect generations.
Insuring them properly is not the same as insuring a modern daily driver. Values fluctuate with restorations and the market, mileage is usually limited, and many classics spend more time garaged than on the road.
Classic car insurance addresses these unique needs with agreed values, limited mileage options, and specialist understanding of restoration and modification.
Agreed Value vs Market Value
Market Value
Standard policies pay market value at the time of loss. This can be hard to evidence for rare or freshly restored vehicles.
Agreed Value
You and the insurer agree a figure in advance, supported by photographs, invoices, and valuations. Settlement is based on this agreed figure.
After a major restoration or market appreciation, refresh your evidence so the agreed figure remains current.
Limited Mileage and Usage
Classic car policies commonly assume lower annual mileage than mainstream policies. Caps might range from 1,000 to 7,500 miles per year. Lower caps usually reduce the premium.
Some policies also restrict:
- Commuting and business use
- Winter driving
- Requirement for a separate modern daily driver
For shows, continental tours, or club rallies, confirm territorial limits and breakdown cover extends to classics.
Storage and Security
Safe storage is central to classic underwriting. Key security measures include:
- Overnight garaging
- Alarms and immobilisers where practical
- Trackers for high-value vehicles
- Physical deterrents like steering locks
If storage changes mid-term, notify your insurer as it can affect risk and pricing.
Restoration and Modifications
Keep photographs and invoices of all restoration work. Note paint codes, part numbers, and file alignment reports. This documentation supports agreed value and helps future buyers.
Period-correct upgrades are usually welcomed, but substantial modifications may require a modified-classic policy:
- Engine swaps or forced induction
- Significant suspension changes
- Wide-arch bodywork
- Interior conversions
Laid-Up Cover
A project car often spends months off the road. Laid-up cover protects it whilst stored or during restoration, typically for:
- Fire and theft
- Sometimes accidental damage in storage
- Tools and parts on premises (limited cover)
Laid-up cover costs less than road insurance because there is no third-party road risk. When the car is ready, convert to full road cover.
Frequently Asked Questions
Is classic car insurance cheaper?
Often, yes—when mileage is limited, the car is garaged, and not used for daily commuting. High theft-risk models may cost more.
Can I build no-claims discount?
Some classic policies recognise claim-free years, but many operate on a different experience basis. Ask your insurer.
Do classic policies include breakdown cover?
Sometimes, but many owners buy classic-specific assistance with recovery suited to low-clearance or non-running cars.
Can I add multiple classics to one policy?
Yes—multi-classic policies exist and can simplify administration.
Conclusion
Classic car insurance is about aligning cover with the way enthusiasts actually use and preserve older vehicles. Agreed value safeguards the investment; limited-mileage and storage conditions recognise reality; and laid-up options keep projects protected.
With clear disclosure, sensible security, and the right specialist partner, owners can enjoy their classics on the best days—confident that the paperwork will perform if the worst happens.