Car insurance: Is your old banger actually a classic?

When does a car become a classic? When you think of a classic car you probably picture a nice Aston Martin or vintage Porsche, but did you know some insurers define a car as a classic once it’s over 10 years old? Taking this into consideration, it’s possible you’ve been driving a classic car without even knowing it.

At what age does a car become a classic?

HMRC defines classic cars as being over 15 years of age with a value of £15,000 or more. However, if your car is over 10 years old (no matter its value), it can be considered a classic car by some classic car insurers — this may help you to get a better deal on your insurance because classic car insurers may show up in your comparisons alongside regular insurers.

Different insurers define the age of a classic car differently, so you might find that the older your car is the more options you will have when it comes to insuring your new-found classic.

Classic car policies tend to cover vehicles with relatively low annual mileage, so if you have an older car and just use it as a runaround you might be eligible for a classic car insurance policy. It’s important to read the terms before deciding on an insurer, as your cover could be invalidated if you exceed any specified mileage limits.

Classic car insurance is more widely available to drivers over the age of 25 — if you’re above this age, your car is over 10 or 15 years old, and your mileage is below average, you could get a great deal on classic car insurance.

Now that you know you’ve got a classic car, it might also be worth reconsidering its value, especially if you’ve owned it for a long time. Some older models have soared in value in recent years, such as older Golfs and Ford Fiestas.

How to cut the cost of classic car insurance

If your car is not worth much you might want to consider taking out a third party insurance policy — this is the minimum level of cover you legally need. Third party cover only pays out for damage and injuries to third parties in the case of an accident, and you won’t get any payout to repair or replace your vehicle.

Taking out a lower level of cover could save you money, but be sure to compare quotes for all types of cover as in some cases it can be more expensive, for example if you’re a young or inexperienced driver. Read our guide on levels of car insurance coverto find out more.

Another way of cutting the cost is ensuring your classic car is kept secure. Insurers will base their premiums on where your car is kept, so compare quotes and see if you can save by keeping your car on your driveway or in a garage. Some classic car insurers may require you to keep your car garaged, so be sure to check the policy details before you buy.

Unfortunately, your new-found classic won’t be able to save you money on vehicle excise duty, unless it’s truly vintage. Only cars over 40 years old are exempt from road tax charges.