The Insurance market is in the middle of a crisis. The credit crunch
resulted in an increased number of fraudulent claims for consumers desperate to keep their
heads above water, and insurers are now struggling in a sea of debt.
In an attempt to regain profitability the insurers are attempting to
become profitable again by increasing prices for customers, with the AA estimating that
car insurance costs have increased by over 40% in the past year.
Classic car owners are not immune to this, and the increased
vulnerability of classic cars to thieves makes them a prime target for these price
increases. However, there are a number of things which can be done to ensure that you
still get cheap
car insurance.
What is a classic car?
Firstly, it is worth working out which group your car is classified
within. There are five classifications for older vehicles:
Veteran - A vehicle
manufactured prior to December 1904
Edwardian - A vehicle
manufactured between January 1905 and December 1918
Vintage - A vehicle
manufactured between January 1919 and December 1933
Classic - Typically these
are vehicles manufactured between 1934 and 1973, however there are some exceptions. A Mark
1 Escort would come into this category
Cherished - These are
collectable or rare cars which are aged between five and ten years.
You should check with your insurer which group your vehicle is
assigned to, as this will vary depending on the company. This will have an impact on the
total amount you have to pay for your insurance.
Money Saving Tips
There are five key things which can be done to lower the cost of classic
car insurance and avoid the record hikes which have hit consumers over the past twelve
months:
Compare the market - In order to
ensure you get the best deal possible you should compare prices with as many different
insurers as you can. The quickest way of doing this is using price comparison websites,
which will compare offers from hundreds of different insurers within seconds.
Don’t forget the others -
However, many people fall into the trap of assuming that price comparison websites compare
prices with every insurer. This simply isn’t true and some companies prefer not to be
featured on such indexes. This means that you should also compare prices with individual
classic car insurance companies on their own websites in order to make sure you are not
missing out on any great deals. Firms to consider for this stage of your search would be
companies like Footman James and Adrian Flux.
Haggle - Don’t just accept
the first offer you are given by an insurer, as this is probably made in the knowledge
that you won’t contest it. Prove them wrong by phoning them up once you have received
a quote online and tell them about cheaper deals you have been offered elsewhere. It is
likely that they will offer you a discount so as not to lose your custom.
Mileage - The more miles you do,
the more likely you are to have an accident. This simple fact means that insurers will
offer cheaper deals to people who do fewer miles. Take advantage of this by making sure
that the mileage allocation you set with you insurer is as low as possible so that you are
not paying over the odds. However, be careful not to set an allocation you know you will
go over as this will give the insurance company good reason to refuse to pay out in the
event of a claim.
Parking - A car parked on the road
is far more likely to be vandalised or stolen than one which is parked in a garage. This
is another statistical fact which effects insurance premiums, and means that motorists who
store their vehicles in garages will pay less for insurance. Take advantage of this, and
park your vehicle in a garage or at least a driveway if you have one available. However,
remember that lying to your insurer about where your car is parked would be another reason
for insurers to refuse to pay out if a claim was made.
Cheapest isn’t always best
In the age of the price comparison site, another trap which
motorists fall into is assuming that the cheapest deal is the best one. Many insurers will
cut off important elements of their policies in order to appear higher up in searches, and
you should therefore take a closer look at the finer points of the agreement before
accepting it.
An example of an important part which is commonly omitted by
insurers is a guaranteed authentic replacement parts policy. If this is not featured on
your policy, it means that the insurer will likely fit the cheapest part possible if your
car requires a repair rather than an authentic piece. This can have a spectacularly bad
effect on the overall value of the vehicle and potentially cost you thousands of pounds.
It is therefore worth paying slightly more for the initial policy in order to avoid this
happening.
Another additional expense which is worth it in the long run is getting an
official independent party to carry out a valuation on your vehicle prior to agreeing your
insurance policy. If this is not in place, the insurer might attempt to pay out less than
what the vehicle is actual worth in the event of a claim. If a policy featuring both of
these things is slightly more expensive, then it might be worth the extra expense. As with
most things in life, the cheapest isn’t always the best.
We would like to express our
thanks to Mark from moneysupermarket.com
for providing the above article.
