Does age play a role in the insurance costs of a classic car?

Here at Restoria Classics, we are obviously big fans of classic cars – it’s kind of our thing! If you are here reading this then it seems like they may be your thing too. If you are looking to take your first steps into the classic car world then we are sure you have lots of questions. One question we are going to look at here today is how the age of the driver is likely to affect the cost of classic car insurance. While many people presume that it is going to be more mature drivers who are looking at classic cars, there is a large and growing number of younger drivers who are getting into the scene. For these younger drivers, the cost of car insurance is going to be a major consideration when it comes to whether or not they are going to take their first step into the classic car world.

It isn’t surprising that there are many younger drivers who are interested in classic cars; while many of today’s cars are ideal for everyday use, most are designed for mass-market appeal, fuel efficiency and cost-effective operation. While these are obviously three very good principles for designing a popular, profitable car, they are not likely to produce exciting and interesting cars. So, another option is to go back in time and find something a little more exciting. This is what is happening, and on a growing scale. So, for this new generation of would-be classic car owners, we are going to look at how their age is likely to impact their classic car insurance premium.

How Classic Car Insurers Classify Vehicles

It can be somewhat difficult to exactly define a classic car. For this reason, many insurers use HMRC’s Benefit in Kind framework, which defines a car as being a classic after 15 years. This is an easy to follow framework, but there are other, sometimes newer, cars that can also fall into the classic category. Sometimes, a newer car can be insured as a classic but it is down to the insurer to decide whether a car fits their definition. It is best to contact a few different companies if you are looking to define a newer car as a classic.

Classic car insurance is, in many ways, the same as insurance for standard vehicles. The main point of difference is related to the value of the car. On most standard insurance policies, the value of the vehicle in the case of a total loss accident is based on what it would cost to replace the vehicle i.e. its market value. Due to the nature of classic cars not being easy to replace, the value of the car in the case of a total loss is based on an agreed value between the insurance company and the customer. This valuation can happen on an annual basis or bi-annual basis, this will be confirmed by your insurer.

Classic car insurance for young drivers

How Much Does Age Play A Role in Insurance Costs?

The age of the driver is likely to be a big part of the equation when it comes to your classic car insurance premium. The truth is, if you are a younger driver, you are highly likely to pay more for insurance (classic or standard) than someone who is older than you. While this may not seem fair (and is certainly not a judgement on your driving skill), it is essentially due to the fact that younger drivers statistically have more accidents than their more experienced counterparts. Unfortunately, when it comes to insurance, you are going to be judged against those in your specific age group rather than your own particular driving skills. This has somewhat been offset by the introduction of telematics boxes, the installation of which can help to assess your driving and reduce your premiums.

If you are a younger driver then you can take heart in the fact that classic car insurance is probably going to be the cheapest way in which you can insure a vehicle, but be mindful that insurers will be looking to reduce their risk, so the age of both you and the car will be taken into account. It is not rare for insurance companies to exclude drivers under a minimum age or driving experience, regardless of the age of the car. There is also likely to be limits on the insurance category of the car that you can cover as well, so don’t expect to be able to insure a classic Ferrari as your first car!

Does The Age Of A Classic Car Affect Insurance Premiums?

Potentially, yes. While it is true that other factors such as the age of the driver and the make/model of the car are likely to be more important when it comes to the insurer’s premium, the age of the car is also likely to factor into the price. We would expect the difference between two cars of the same model but differing years to be minimal, but there may still be a difference. It is best to speak to an individual insurer to see how much this difference will be before you purchase the car, this way you will find out about differences well before parting with your hard-earned cash.

As the insurance category for a car is based on the model, the main difference that you are going to face is if the model changed throughout its life. Many cars are treated to upgrades throughout their production life and this can result in vastly different cars. If this is true for the vehicle that you are looking to purchase, the insurance premium price difference may well be significant. We would always suggest that you seek lots of information before committing to a vehicle purchase.

How To Reduce Classic Car Insurance Costs

Thankfully, there are numerous ways in which you can reduce your classic car insurance premium. Much like a standard insurance policy, you can add named drivers to your policy if that person is likely to use your car. For younger people, that can often be a parent with years of driving experience. The addition of a named driver can often reduce premiums, but be careful to ensure that you provide honest information to your insurer – while it is tempting to insure the car under an alternative person’s details, this is called fronting and is illegal. As well as being illegal, fronting will also likely mean that in the aftermath of an accident, your insurance policy will be invalid and you will receive no repayment for your damaged car.

Classic car insurance is generally much cheaper than standard insurance due to the nature of the vehicle and the limited mileage that it is likely to cover. Classic car insurers know that the owners of these types of vehicles are likely to drive, and look after, their vehicles carefully. While these are a given, you can also gain further discounts if you are a member of a car club, as car club members are likely to cherish their classics even more. You will need to check with individual insurers to see whether they offer this discount but many do. So as you can see, classic car ownership isn’t just for more mature drivers – it is for anyone who has the passion and commitment to own a classic, and while costs can be prohibitive, there are numerous ways to reduce the cost.