How can young drivers get affordable classic car insurance?

Drivers under the age of 25 face higher car insurance premiums than any other age group; while classic cars are often more expensive to insure than conventional vehicles because of their unique parts and high repair costs. So if you’re a young driver with a classic car you may assume that high premiums are unavoidable.

Indeed some insurers won’t offer quotes to drivers that are under the age of 25 and are driving a classic car at all; but there are a handful insurers that will and if you’re savvy in your approach you may be able to bring these costs down.

How does classic car insurance for young drivers work?

More vehicles are being tagged as ‘cherished’ by insurers even though they are only five- to 10 years old. This means that many young drivers picking up bargain buys from used car dealers may be driving a car that a conventional insurer is unwilling to quote for.

Insurers use different categories to classify classic cars – these categories are used to assess their premiums, values and risks. They are:

- Veterans: Refers to vehicles manufactured up to December 1904.

- Edwardian: Vehicles built from January 1905-December 1918.

- Vintage: A term for vehicles manufactured from December 1918-1933.

- Classics: These are vehicles typically manufactured pre-1974.

- Cherished: Refers to collectible or rare cars that are five- to 10 years old.

Young drivers should consider insurance costs before they choose a classic car. Most classics – unless they are newer, cherished vehicles – will not be designated by the Association of British Insurers into its 1-50 insurance group system. So, young drivers should look at: the price of the vehicle; its performance, acceleration and top speed; the cost of replacement parts; and its security levels, before deciding on which classic car to buy. By choosing a vehicle with a small engine – preferably below 1200cc – they could slash their premiums.

How can young drivers cut premiums?

In 2008, several insurance companies, including the likes of AXA and Esure, stopped offering quotes to 17-year-olds altogether believing them to be too high a risk. In the case of classic cars, the number of insurers willing to offer quotes is even more limited – which is why shopping around and assessing the deals available from as wide a proportion of the market as possible is crucial.

To do this, young motorists could use a comparison website to see if there are any conventional insurers willing to offer deals. From there, young drivers should shop around for quotes from specialist classic insurers which may offer unique features that make their policies more desirable.

For example, specialist classic car insurers often include incentives such as agreed valuations – so you know exactly what your car is worth ahead of time in case it were written off or stolen. They can also incorporate features such as laid-up insurance, which provides cover against theft and vandalism for a classic car that is not actually roadworthy; and track/rally cover in case you plan to enter your car into any special events.

Several classic car insurers also offer unique incentives such as owners’/manufacturers’ club discounts, which provide money off premiums if you are part of a specialist club.

There are several other ways for young motorists to reduce classic car insurance premiums including:

-      Enhanced security: Fitting modern car alarm, immobilisers or tracking devices could earn discounts from an insurer. Consult the provider about which equipment to use.

-      Agreeing to a mileage limit: Many classic cars are used as secondary vehicles and so it may be possible to agree to a mileage limit with your insurer which could slash your costs.

-      Park safely: Ensure that your classic car is locked in a garage overnight and that it is parked in a secure car park during the day for further savings.

-      Increase your voluntary excess: The compulsory excess is the sum you have to pay in the event of a claim – but a voluntary excess is a variable amount that you can adjust. Setting the voluntary excess at a high level will cut premiums, albeit you will have to pay more if a claim is necessary.

-      Pay annually – Paying car insurance premiums upfront will cut out interest charges.