Everything you need to know about classic car insurance

How does classic car insurance work?

Classic car insurance isn’t like a standard policy you find on a comparison site. Because classic cars aren’t used like everyday vehicles.

It works differently to standard car insurance because it’s tailored to how classic cars are driven, stored and maintained.

Policies are typically based on:

• Limited annual mileage often between 1,000 and 5,000 miles
• Specialist use for leisure driving, shows and events
• Secure storage such as in a garage
• Enthusiast ownership, where cars are well cared for and not driven every day

One key feature of a classic car insurance policy is the agreed value. We cover agreed value in more detail later in this guide here.

The different types of classic car insurance policies

Classic car insurance policies are designed to cover the unique needs of older and specialist vehicles. While cover varies between insurers, here’s the different types of policies and the cover you can typically expect:

Comprehensive cover

This is the one we recommend to give you the most complete level of protection. You’ll be covered for things such as:

• Accidental damage, covering repair costs from collisions with other vehicles or objects.
• Third-party damage or injury
• Theft and vandalism, providing protection if your classic car is stolen or vandalised.​
• Fire damage, covering losses resulting from fire incidents.​
• Natural disasters, protecting you from events like floods, storms or earthquakes.​
• ​Windscreen cover which pays for the repair or replacement of your vehicle’s windscreen if damaged.
• Agreed value cover, ensuring you receive a predetermined amount in case of a total loss, reflecting your classic car’s true value.​
• Salvage retention so you can keep your car’s salvage if it’s written off, with the salvage value deducted from your insurance payout.

Third party, fire and theft

This cover protects against third party claims, fire and theft. This type of insurance provides minimal legal protection to drive your vehicle on public roads. You can claim for:

• Damage you cause to other vehicles or property in an accident
• Fire damage to your classic car
• Theft or attempted theft

You won’t be covered for accidental damage to your own vehicle, so you’d have to make repairs yourself.

Laid-up cover

If your classic car is SORN, off the road or in storage, laid-up cover offers protection without road use. It typically includes:

• Fire damage while in storage
• Theft or attempted theft
• Accidental damage (e.g. items falling onto the car in a garage)
• Vandalism (e.g. someone breaks into your garage, where your classic car is stored, and smashes a window)

This type of policy is ideal if your car is being restored, stored over winter, or is not yet ready to drive. You can switch to full cover once it’s back on the road.

We always recommend a comprehensive policy if you plan on driving your classic car within 12 months. It’s more convenient, you have greater flexibility, and you’ll avoid having to pay a mid-term adjustment fee to update your policy.

Other optional add-ons

Many classic car insurers offer optional add-ons, including:

• Classic car breakdown cover, including 90 days European cover
• Motor legal cover to help with legal expenses
• Key protect cover for lost or stolen keys
• Excess protect to recover your insurance excess
• Agreed value, free of charge through Heritage

If you’re unsure what each of these add-ons cover, our team will be more than happy to talk you through it.

Our tips for getting the best cover for your classic car

To get the best protection for your specialist vehicle at the right price, you should:

1. Include agreed value in your policy: This ensures you’re paid the full agreed amount if your car is written off or stolen.
2. Estimate mileage realistically: This ensures accurate cover that reflects how often you plan to drive your classic car. This can always be updated down the line if you ever need to.
3. Store your vehicle securely: Keeping your car in a locked garage can lower your premium as it reduces the likelihood of a claim.
4. Disclose any modifications, even minor ones: Not doing so could affect you when making a claim.
5. Join a recognised classic car club: Club membership can unlock discounts and indicates to insurers that you’re an enthusiast.
6. Keep your driving record clean: Easier said than done, but keeping your driving record clean helps. Fewer points and claims mean better rates. Insurers reward careful drivers.
7. Use a broker: A broker can match your car with the right insurer and policy, saving you time and often money.

Read our tips for reducing your classic car insurance costs.

Avoid these mistakes when getting classic car insurance

Here are some common mistakes to avoid when getting insurance for your classic car.

1. Using a comparison site: Many comparison sites don’t offer true classic car policies. You could end up with cover that doesn’t suit how you use your vehicle. We advise insuring through a specialist broker instead.
2. Opting for market value: Relying on market value means you could get far less than your car is worth if it’s written off. Always ask for agreed value to lock in what your car would be paid out for. This is free of charge when you insure through Heritage.
3. Underestimating and overestimating mileage: Trying to lower your premium by purposefully opting for low mileage, knowing you’ll be driving more, can backfire. If you go over your limit considerably and you need to make a claim, you might not be covered. On the flip side, being insured for 5,000 miles and knowing you’ll only drive 1,000 miles means you’re overpaying.
4. Not disclosing modifications: All performance modification upgrades should be declared. Failure to do so could affect a claim.
5. Letting your cover lapse: If your insurance policy lapses, you’re vulnerable if you need to make a claim. Even if your car is off the road, you still need cover for fire, theft or accidental damage. A laid-up policy protects your investment even while it’s in storage.
6. Assuming all classics are treated the same: Not every old car qualifies for classic cover. Some everyday vehicles from the early 2000s won’t be eligible unless they’re rare, in exceptional condition or perceived as specialist by insurers.

Is classic car insurance cheaper than standard insurance?

Yes, in most cases. Classic car insurance is often cheaper because these cars aren’t driven daily.

Insurers see them as lower risk since they spend less time on the road. Owners also tend to take better care of their vehicles, and many classics are stored securely, often in a garage.

Mileage is usually limited under classic policies, which also helps reduce risk. Insurers also recognise that classic car enthusiasts are more likely to maintain their vehicles to a high standard.

That said, your premium still depends on other factors – including your driving history, where you store the vehicle, your location, the car’s value and the level of cover you choose.

A specialist broker can help you tailor your policy to get the right balance between protection and price.

Does my car qualify as a classic for insurance?

There’s no universal rule, but most insurers start considering cars ‘classic’ from around 20 years old.

At Heritage, we define classic cars as vehicles that are not used for everyday commuting, are well cared for, owned by enthusiasts and often appreciating or holding their value.

Read more on how old a car must be for classic insurance.

What types of cars can be insured as classics?

Classic car insurance isn’t just based on age. While many policies start from around 20 years old, we also consider how the car is used, its condition and its appeal to enthusiasts.

Some ‘modern’ cars that may qualify for specialist cover with Heritage include:

• 2005 Vauxhall VXR220
• 2004 BMW Z4
• Even a 2024 Morgan Plus Four

These cars stand out for their performance, design or limited production — even if they’re newer than traditional ‘classics’.

Likewise, not all older cars qualify. Models like the 2001 Ford Focus or a 2002 Vauxhall Astra, despite their age, were mass-produced for daily use and are very unlikely to be accepted onto a specialist insurance scheme.

How old do I need to be to insure a classic car?

Many insurers will only cover drivers from age 25 and up for classic car insurance policies, including the ones we work with. If you’re under 25 and looking to insure a classic car, your options may be more limited, and premiums might be higher.

Tell me more about agreed value

Agreed value is a key feature as part of a classic car insurance policy, and one of the reasons why you should insure through a broker who understands the classic car market.

It means you and your insurer agree on the value of your classic car upfront when you take out the policy. If it’s written off or stolen, you’ll be paid that agreed amount. This ensures your car is covered for what it’s truly worth and you know what you’ll be paid with no surprises.

At Heritage, we include agreed value free of charge. Many insurers will charge a fee for this, but we’re committed to continuing to provide this valuable service free of charge to our clients.

How is agreed value decided?

• You need to provide recent photos of your car, including the exterior, interior and engine bay.
• The insurer may ask about the car’s condition, mileage, history and originality
• For many cars, you can self-declare a value up to a certain limit
• For higher value or rare vehicles, a formal valuation might be required

Why insure your classic car with Heritage?

Our name says it all. At Heritage, classic car insurance isn’t just another product alongside other insurance products, it is exactly what we’ve specialised in for 60 years.

We understand that no two classics are the same, which is why we go the extra mile to get the right cover for your vehicle.

We’re family-owned and proud to be among the very few that still provide a personal service. You can expect this every time with Heritage.

That’s why 96.7% of our customers rated us 4 or 5 stars in 2024, and why thousands of classic car owners continue to trust Heritage for specialist insurance.

How to get a quote to insure your classic car

Getting an insurance quote for your classic car is simple. You have two convenient options:

Whichever method you choose, Heritage is committed to providing you with the right cover for your classic car. Our team of underwriters also carry out regular checks of online policies to ensure all of clients have the protection they need.

If you enjoyed this guide, we think you’ll like the insights we provide in The Heritage Classic Car Report of 2025 with exclusive statistics into classic car insurance, ownership, values and so much more.