Did you know that we can offer insurance for Classic Cars?
And did you know that the average price of Classic Cars had increased by over 400% in the past decade? The cost for this type of insurance hasn't risen by as much-why?
First of all, let's look at what we consider as a 'classic' car (CC). It used to be the case that cars over eighteen years would be eligible for a CC contract but this is somewhat missing the point. An old banger should not be able to take advantage of this specialist contract, after all. To truly understand it is probably best to substitute the word classic for cherished.
Cherished cars will not be on the road a great deal throughout the year, reducing the risk of accidents. Indeed, CC contracts work on the basis of you nominating the number of miles you think you will do in a year and it's usually very low – often up to 3,000 or 5,000 miles.
Cherished cars will generally hold their value far better than a normal, modern car. Because of this, CC contracts can be arranged so that the value of the vehicle is agreed prior to any loss. This is good news because there will be no hidden surprises, but potentially bad news if you currently undervalue and therefore underinsure the car. According to Post Magazine, the Historical Automobile Group recently highlighted this problem and suggested that classic car value had increased by 430% in the last decade!
This is synonymous with many items worth investing in throughout the last decade – including certain jewellery, fine art, and antiques. The advice is to get these items valued by a professional and then make sure your insurance is covering you up to the correct amount.
CC insurance hasn't increased by as much as the value of the vehicles because it is, as much as possible, segregated from standard car insurance and its current battle trying to balance premium income with inflated claims costs.
If you are looking into your classic/cherished car insurance, be sure to ask us for a quotation. Call the team on 0800 980 2701 or email: contactus@swib.co.uk
Categories: Private Clients, Employee Benefits & Healthcare
Chris Baumann
I lead the Private Clients team. Having moved from Australia in 2008, I joined the company in 2011 and have over 12 years' industry experience.
I have been involved in a number of different roles including client adviser positions and more recently I became responsible for business development in the Private Clients team.
