Young Drivers and Classic Car Insurance

Some classic cars can be notoriously expensive to insure and young drivers under the age of 25 face higher car insurance premiums on average than any other age group. So you might assume that classic cars and young drivers are not a good mix – however, that doesn’t have to be the case.

Here we’ll look at the different types of classic cars available to young drivers, how they can choose an affordable classic vehicle and how to lower their insurance premiums.

What classic cars are available?

Mention the words “classic car” and many will conjure images of vehicles from the likes of Bristol, Jensen and Austin-Healey. However, the number of standard family cars that are now classified as classics has risen dramatically, including young driver favourites such as the Ford Cortina and Ford Capri, or the VW Beetle.

Insurers actually place classic cars into several different categories that are used to assess their risks, values and premiums. They are:

• Veterans: Vehicles manufactured up to December 1904.
• Edwardian: Manufactured from January 1905-December 1918.
• Vintage: Manufactured from December 1918-1933.
• Classics: Typically manufactured pre-1974.
• Cherished: Collectible or rare cars that are five- to 10years old.

How can young drivers find an affordable classic car?

Technically, classic cars can be picked up from used car dealers for relatively cheap prices. However, young drivers should be careful about the vehicles they select and budget for all costs including insurance ahead of time.

Many cherished cars are ranked under the Association of British Insurers’ insurance group database, so this can be a good starting point to gain an estimate of costs. However, for older classic cars that are not covered by the database, customers can still follow its criteria when choosing a classic car. This means considering:

• Its price and the cost of a settlement in the event of a total loss.
• Its performance, acceleration and top speed.
• Parts pricing from a list of 23 standard parts.
• The vehicle’s security levels.

Settling on a valuation for the car as soon as you take a policy out is important. Several specialist classic car insurers offer agreed valuations based on an assessment of the car and its true value rather than its market value in the event of a claim.

Choosing a classic car with a small engine – preferably below 1200cc – is important for young drivers as driving a car with a large engine can cause premiums to sky rocket. Young drivers should also think carefully before modifying the vehicle – all modifications will have to be declared to an insurer and may cause premiums to rise.

How to lower classic car insurance premiums

According to research by the AA in 2009, around half of all insurers do not offer third party, fire and theft cover to drivers under the age of 20 for conventional vehicles. The chances of finding competitive classic car insurance for young drivers, is even more remote, and as such, comparing policies takes on added importance.

The first step therefore should be to shop around with a comparison website to see if any conventional insurers are willing to offer a quote – this may be possible if you’re driving a cherished vehicle. Then compare these quotes to those available from specialist classic insurers.

There are additional steps to take to bring your premiums down – these include:

• Agreeing to a mileage limit: The fewer miles you drive, the more you should save. As classic cars are rarely driven on a daily basis most policies incorporate a limited mileage element.
• Track day/rally cover: If you plan to race your classic car or compete in events declare this at the outset so you can arrange appropriate cover.
• Owners’ club discounts: Some classic car insurers offer discounts to enthusiasts that are part of a car owners’ club.
• Security: You can earn additional discounts by improving your vehicles security features with modern alarms, immobilizers and tracking devices.
• Excess: Increasing your voluntary excess could reduce premiums but should only be set at a level you can afford in case an accident occurs.

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