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In general terms a limited mileage classic car policy will normally have certain features that
a standard car policy will not have and vice versa. For instance, a classic car policy can be
expected to have an ‘agreed value’ stated in the schedule in the event of a total loss claim,
rather than a market value which will be open to negotiation, having regard to the market
value of that car at the time of the event giving rise to the claim.

The policy may also be restricted in the amount of miles the car is allowed to do in the course
of the year; mileages of 1500, 2000, 3000, 4000, 5000, 6000 and 7500 are offered In the market – dependant, of course, on scheme or general underwriting criteria and frequently today, as with several Club Schemes, unlimited mileages are also available with agreed value. The third most important point is that, in most cases, a no-claim bonus proof is not required to be submitted.

Limited mileage classic car insurance works on the basis that the proposer (and any named drivers) has good driving histories with a satisfactory bonus on their primary car, or a good driving record if a company owned car. The policies are therefore, what is called, ‘flat-rated’. Some schemes require the existence of a primary car for ‘everyday’ use – others do not –
a point to check – as is the facility to commute to and from work. Garaging and security
are very important.

It takes a lot of £150 premiums to pay for a £20,000 classic that has been stolen. Secure night-time garaging at the owner’s address is mandatory for some schemes, particularly for higher value cars or in ‘high-risk’ areas. Expect to pay more, therefore, for driveway or street parking.

Another difference between classic car and private insurance is that breakdown and recovery is often included in the classic policy. This may be restricted to UK only but, in many cases also includes the EU.

Private car policies, on the other hand, do not normally have mileage limitations, although with today’s quotation systems there are often premium reductions for restricting mileage.  Good quality comprehensive policies normally include business use by the proposer and spouse and, of course, commuting to and from work.  Business use is not always available on a limited mileage classic car policy, neither is the ‘driving other cars’ extension (albeit third party only) normally found as standard on most comprehensive policies.  Whereas a ‘flat-rated’ classic car policy assumes you are ‘innocent until proved guilty’ the traditional method of assessing rates for private motorists has been via the no-claims bonus system, e.g. 1 year 30% discount, 2 years 40%, etc.

An article such as this cannot possibly cover all the minor variances in policy terms and conditions but other considerations such as the proposer’s age, location, occupation, driving record, all help to decide whether someone is eligible for a classic car policy.  With the choice in the market today, it is well worth asking.